The Tata Consultancy Services (TCS) stock hit a fresh record clsing high level in trade today after the Mumbai-based firm reported a 23 per cent rise in June quarter net profit. The stock was the top Sensex and Nifty gainer in early trade.
The stock closed 5.47% or 102 points higher at 1979 level on BSE. Led by the sharp gain in the stock, the company's market valuation rose by Rs 39,281.74 crore to Rs 7,57,904.74 crore.
In terms of equity volume, 11.57 lakh shares of the company were traded on BSE and over 2 crore shares changed hands at NSE during the day.
"TCS first quarter results were better-than-expected on all fronts against our/street estimates," Emkay Global Financial Services said in a report.
At 10:47 am, the stock was trading 3.22% or 60 points higher at 1937.40 level. On Nifty, the stock was up 3.42% to 1935.65 level.The earnings were announced after market hours on Tuesday. The TCS stock closed 0.56 per cent lower at Rs 1,877 on the BSE.
The stock gained after two consecutive days of decline today. The stock hit its life-time high level of 1,930 on July 9, 2018 and succumbed to profit booking before it erased losses to hit an intra day and fresh life time high of 1955 level in trade today.
The stock's market capitalisation rose to Rs 757,904 crore on the BSE.
The stock has gained 55.75% during the last one year. It has risen 42.57% since the beginning of this year.
On Tuesday, the firm reported Q1 net profit at Rs 7,340 crore compared to Rs 5,945 crore net profit in the corresponding period of previous fiscal.
TCS said its board has declared an interim dividend of Rs 4 per equity share of Re 1 each of the company. The emerging digital segment saw a massive 44 per cent spike in revenue compared to the preceding quarter and now contributes a fourth of the total income.
The company achieved a 9.3 per cent revenue growth in constant currency terms and TCS chief executive and managing director Rajesh Gopinathan said they would try to meet the objective of double-digit revenue growth for the full fiscal, which is a notch above the industry lobby Nasscom's annual target.