India's TCS shares at record high on upbeat earnings
Shares in Tata Consultancy Services, India's biggest IT outsourcing firm, rose to a record high today after reporting better-than-expected quarterly earnings.business Updated: Jul 19, 2013 11:18 IST
Shares in Tata Consultancy Services, India's biggest IT outsourcing firm, rose to a record high on Friday after reporting better-than-expected quarterly earnings.
TCS jumped as much as 3.84 % to Rs 1,724.0 on the Bombay Stock Exchange after announcing on Thursday that net profit had risen 16.8 % to 38.31 billion rupees ($641 million) in the April-June quarter.
The firm, part of the steel-to-tea Tata conglomerate, counts blue-chip companies such as British Airways, BP, Citigroup and Microsoft among its main clients.
"TCS's results were hugely positive, the highlight being a 6.1 % volume growth, a seven-quarter high," said Ankita Somani, an analyst with Mumbai's Angel Broking.
TCS and its rival Infosys -- which lead India's flagship IT outsourcing industry -- have both reported strong earnings this month, despite lingering uncertainty over global business conditions.
Infosys last week reported a nearly four percent rise in quarterly net profit and kept its market forecast intact.
India's software outsourcing industry carries out a wide range of jobs for Western firms such as answering calls from bank customers, processing insurance claims and developing software.
India, with its large English-speaking workforce, accounts for at least 50 % of the global outsourcing market.