TCS gains on strong Q1 results

Tata Consultancy Services (TCS) is trading 4% higher at Rs 815.20, after the information technology (IT) major reported better-than-expected financial results for the first quarter ended June 2010.

The company posted 24.3% jump in its consolidated (Indian GAAP) net profit at Rs 1,906 crore for the quarter ended June 30, as against Rs 1,534 crore during the same quarter of previous year. Reenue increased 14% y-o-y to Rs 8,217 crore during the recently concluded quarter.

However, sequentially (compared with the trailing quarter), the company’s net profit dipped 4.7%, while its revenue was up 6.2%. In dollar terms, the company posted a 29.3% year-on-year (YoY) growth in revenue but a 4.9% drop in quarter-on-quarter (QoQ) net profit.

TCS, which counts Citibank, General Electric and American retailer Home Depot among its top customers, added 36 new clients during the quarter ended June, including a $100-million outsourcing contract from a media firm.

“This has been a quarter of complete outperformance. Our balanced growth was driven by disciplined execution and strong demand across markets and industry sectors” said N Chandrasekaran, CEO and Managing Director of the company.

The stock opened at Rs 792 and touched high of Rs 818.90 on the BSE in morning trades. As many as 349,000 shares have already changed hands, as against an average 215,000 shares that were traded daily in past two weeks.