Shares of the country's largest software services company, Tata Consultancy Services (TCS), rose as much as 3.32 percent to hit record high of ₹ 3,224 on the BSE after it reported stronger than expected December quarter earnings post-market hours on Friday on the back of higher demand for its cloud services during the Covid-19 pandemic. TCS shares surged a whopping 33 percent in the calendar year 2020, outperforming the Nifty which rose 15 percent.


TCS' net profit rose to ₹ 8,701 Crore in the three months (TCS share price) to December 31, 2020, from ₹ 8,118 Crore a year earlier. Analysts on average had expected a profit of ₹ 8,401 crore, according to Refinitiv data. Revenue from operations jumped 5.4 per cent to ₹ 42,015 Crore.

The results kicked off India's corporate earnings season for the December quarter, a seasonally weak period for the software industry, but one which analysts reckon has been good for IT firms in 2020 because in part due to the Covid-19 crisis.

TCS and rivals, Infosys and Wipro, have been winning more large contracts from businesses that are investing in services such as cloud-computing and cybersecurity to support their shift to remote work.

"Growing demand for core transformation services ... have driven a powerful momentum (TCS share price ) that helped us overcome seasonal headwinds," TCS Chief Executive Officer Rajesh Gopinathan said in a statement to the stock exchanges.

TCS' revenue in terms of constant grew at 4.1 percent sequentially.

The Mumbai-based company said revenue from the banking and finance industries, its top revenue (TCS share price )  contributor, jumped 7.6 percent year-over-year to ₹ 16,655 crore in the December quarter.