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Shares of Tata Consultancy Services (TCS) advanced over 4 per cent in Thursday’s morning trade after the company on Wednesday posted better than expected financial results for the quarter ended September 30.
The scrip traded 4.39 per cent higher at Rs 2,857 at around 10.35 am (IST), while the benchmark BSE Sensex was up 1.24 per cent at 40,371.
The country’s largest IT firm said its net profit fell 7.05 per cent to Rs 7,475 crore for the September quarter compared with Rs 8,042 crore in the same quarter last year.
While retaining a ‘Buy’ call on TCS, brokerage Edelweiss Securities said the company delivered a stellar set of results in Q2FY21 with numbers beating Street expectations. Revenue also beat Street estimates of Rs 38,962 crore.
The software exporter also said its revenue for the quarter rose to Rs 40,135 crore from Rs 38,977 crore year-on-year (YoY). The company claimed its cash conversion was strong as net cash from operations stood at Rs 10,618 crore, 125.9 per cent of net income.
According to BOB Capital Markets, TCS’ revenue growth of 7.2 per cent quarter-on-quarter (QoQ) in dollar terms exceeded the expectation of 2.8 per cent growth, registering its best QoQ growth in the last 20 quarters.
In another update, TCS also announced a mega Rs 16,000 crore buyback plan at Rs 3,000 per equity share.
In 2017 and 2018 too, TCS had undertaken buyback offers of similar sizes.
Going ahead, TCS management is also looking confident about the second half of FY21 despite uncertainties and seasonal weakness of Q3.
The scrip traded 4.39 per cent higher at Rs 2,857 at around 10.35 am (IST), while the benchmark BSE Sensex was up 1.24 per cent at 40,371.
The country’s largest IT firm said its net profit fell 7.05 per cent to Rs 7,475 crore for the September quarter compared with Rs 8,042 crore in the same quarter last year.
While retaining a ‘Buy’ call on TCS, brokerage Edelweiss Securities said the company delivered a stellar set of results in Q2FY21 with numbers beating Street expectations. Revenue also beat Street estimates of Rs 38,962 crore.
The software exporter also said its revenue for the quarter rose to Rs 40,135 crore from Rs 38,977 crore year-on-year (YoY). The company claimed its cash conversion was strong as net cash from operations stood at Rs 10,618 crore, 125.9 per cent of net income.
According to BOB Capital Markets, TCS’ revenue growth of 7.2 per cent quarter-on-quarter (QoQ) in dollar terms exceeded the expectation of 2.8 per cent growth, registering its best QoQ growth in the last 20 quarters.
In another update, TCS also announced a mega Rs 16,000 crore buyback plan at Rs 3,000 per equity share.
In 2017 and 2018 too, TCS had undertaken buyback offers of similar sizes.
Going ahead, TCS management is also looking confident about the second half of FY21 despite uncertainties and seasonal weakness of Q3.
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