TCS rallies on better-than-expected Q3 earnings

Tata Consultancy Services (TCS) has rallied 5% to Rs 1,400 on NSE in opening trades after reporting a better-than-expected 1% quarter-on-quarter (qoq) growth in consolidated net profit at Rs 3,552 crore for the third quarter ended December 2012 (Q3). On year-on-year basis (yoy), net profit grew by 23%.

Analysts on an average had expected profit of Rs 3,433 crore from the country’s number 1 software services company.

“The company reported a revenue growth of 21.7% at Rs 16,070 crore on a yoy basis. Revenue grew 2.9% on sequential basis,” TCS said in a statement.

Meanwhile, the board of directors of the company have declared a third interim dividend of 300% or Rs 3 per equity share of Re 1 each of the company.

The stock opened at Rs 1,390 and has seen a combined 544,762 shares changing hands on the counter on the NSE and BSE.