MUMBAI: There was a rise in the share prices of TCS of more than 4% on Friday after the company registered a 21 percent rise in its quarterly profit and stated that it was seeing strong demand.
The net profit has risen better than it was expected to 24% (Rs 1,906 crore for the April-June quarter) and N Chandrasekaran, CEO and MD of India’s largest software exporter, said the volume growth of 8.1% is the best the company attained from September 2008.
“The current demand outlook is very good but the macro-economic condition is dynamic, especially in Europe,” he observed.
The company is always the 1st to declare earnings which this time reflected the pressure that software companies were facing due to tumbling euro and rising wages, though TCS seems to have coped a little better.
On Tuesday, Infosys had reported a 2.4% decline in net profit to Rs 1,488 crore but had raised the revenue forecast that it made in April.
TCS grew its first-quarter sales by 14% to Rs 8,217 crore. The company never makes revenue or earnings forecasts. On Thursday, before the results by TCS were announced, the company’s stock closed 1.22% higher at Rs 784.10 on BSE. Share prices of Infosys rose by 0.61% and Wipro also gained 1% which is due to declare its results.