Beating market expectations (TCS), India's number one IT services exporter on Tuesday reported a Profit After tax (PAT) of Rs 4702 crore versus Rs 3796.2 crore in Q1. This is a rise of 24.7% quarter-on-quarter.

The dollar revenues for Q2 were reported at $3.33 billion versus $3.16 billion QoQ. Q2 sales stood at Rs 20,980 crore versus Rs 17,987 crore QoQ. The foreign exchange loss for Q2 was reported at Rs 377 crore.

While the Q2 utilisations excluding trainees came in at 83.4%, the gross employee addition was at 17,362. The number of $100 million plus clients rose to twenty-two from 19. The Q2 volume growth stood at 7.3%.

Commenting on the results, N Chandrasekaran, TCS CEO said, "We continue to see robust demand pipeline across markets. TCS has demonstrated all-round strong growth across markets."

Ahead of the Q2 results, shares in TCS closed the day at Rs 2218.15, up 0.16% on the Bombay Stock Exchange. The stock hit an intra-day high of Rs 2258.05 and a low of Rs 2202.00.

The stock of Tata Consultancy Services has earned 36% return in three months and over half of it in just a month. The counter of the nation's largest IT exporter has been hitting a new high over the past few weeks.

There are three factors that have driven the stock's valuation: a robust performance by the company in the past three years compared to peers, the benefit of weakening rupee given its high proportion of export revenue and lack of avenues for investors due to abysmal growth in the domestic economy.

Being an export oriented company with over 83% of the revenue from the US and Europe, TCS serves as a hedge for investors against weakening trend in the domestic economy.

In addition, considering its relatively faster pace of revenue and profit growth over the past three years, the company is in a position to benefit more from the depreciating rupee against major currencies.