TCS, HCL beat earnings estimates

By Reuters

  • 16 Jan 2014

Tata Consultancy Services Ltd said quarterly consolidated net profit surged 49.6 per cent, its fastest pace of increase in at least two-and-half years, helped by increasing demand for outsourcing services in the United States and Europe.

Consolidated net profit rose to 53.14 billion rupees ($863.29 million) for the quarter ended December from 35.52 billion rupees a year earlier, TCS said on Thursday. The profit beat the average estimate of 51.3 billion rupees, according to a Thomson Reuters poll of 23 analysts.

Shares of Tata Consultancy, the leader in India's export-driven $108 billion IT outsourcing industry, have risen nearly 76 per cent over the last 12 months, compared with a 6.4 per cent rise for the main index.

The stock closed down 0.14 per cent ahead of the earnings announcement at 2,350.30 rupees.

Shares in HCL Technologies Ltd rose as much as 3.5 per cent to a record high of 1,377 rupees after the company reported December-quarter consolidated net profit rose more than expected.

HCL Technologies said earlier in the day its consolidated net profit for October-December rose by 58.4 per cent to 14.96 billion rupees, compared with the average estimate of 14.22 billion rupees by 24 analysts, according to Thomson Reuters I/B/E/S.

Shares in HCL Technologies ended up 4.5 per cent.