AMN / Mumbai
Tata Consultancy Services Ltd (TCS), nation’s largest information technology (IT) services firm, on Monday crossed the $100-billion market capitalization milestone. With this TCS becomes the first Indian company to hit the $100 billion market capitalization(m-cap) figure.
The IT major — whose shares rose over four per cent to a new high of Rs 3,557 per share on the BSE during market hours — overtook its global peer Accenture, which has a market value of $98 billion dollars.
“It is a very proud moment for all of us. TCS has been able to create value consistently by making the right investments not only in terms of technology, but also in terms of creating capabilities, building leadership and talent, seeding new markets and developing scalable world-class solutions,” N. Chandrasekaran, Chairman, Tata Sons, said in a statement.
Chairman N. Chandrasekaran on @TCS hitting the $100 billion mark in market capitalisation. #100BillionTCS pic.twitter.com/lxycq6ZLXq
— Tata Group (@TataCompanies) April 23, 2018
“I would like to thank our shareholders for their continued support,” he said.
“We are indeed delighted and thankful to our employees and customers who have been instrumental in achieving this milestone – what is exciting for us is the whole business 4.0 journey and the great opportunity to be a digital partner of choice to our customers in their growth and transformation journey,” said Rajesh Gopinathan, CEO & MD, TCS.
On closing (at 3.30 p.m.), the m-cap of the company stood at Rs 653,767.50 crore or roughly $98.47 billion. Shares of TCS closed at Rs 3,415.20 per scrip, up 0.26 per cent.
“TCS crossed $100 bn in m-cap in trade today, becoming the first Indian company to do so. In the process, it just got ahead of its global peer Accenture. TCS continues to execute dependably for a company of its size,” Deepak Jasani, Head, Retail Research, HDFC Securities said.
“Though the number one company Apple — with a marketcap of $840 billion — is much ahead of TCS, India has reasons to be proud of TCS. Having delivered over 22 per cent CAGR (compounded annual growth rate) returns over its 14 years of listing, it has made many Indians wealthy in its journey,” he added.
On Friday, the IT major’s shares had surged over 7 per cent to Rs 3,419.80 per share, taking its m-cap to over Rs 6.50 lakh crore or around $98 billion — close to the $100 billion mark.
The company’s shares had surged a day after its quarterly results announcement, which reported a net profit for Q4 at Rs 6,925 crore — up 4.6 per cent — from Rs 6,622 crore in the same period in 2017 and up 5.8 per cent sequentially from Rs 6,545 crore a quarter ago.
It also announced 1:1 bonus shares of Re 1 face value to its investors at the end of fiscal 2017-18.
“TCS had surged by nearly 7 per cent on Friday, making investors richer by over Rs 40,000 crore in a day. TCS, part of the salt-to-software conglomerate Tata group, reported Rs 32,075 crore as income from operations — a rise of 8.2 per cent from a year ago,” said Dhruv Desai, Director and Chief Operating Officer of Tradebulls.
In a regulatory filing to the BSE, the global IT services, consulting and business solutions organisation on Monday said it has been positioned in the ‘Winner’s Circle’ in HfS Research’s “Enterprise Artificial lntelligence(AI) services 2018 Blueprint”.
“The digital era is going to be a large opportunity for TCS. Organisations are transforming into real-time enterprises driven by data, analytics and automation irrespective of its business and TCS is well positioned to make an impact and continue to deliver value,” added Chandrasekaran.