TCS becomes first Indian company to breach $100 billion market capitalisation
NEW DELHI: Tata Consultancy Services(TCS), the country’s largest IT outsourcing company created history on Monday by becoming the first Indian company to reach the $100 billion market capitalisation (m-cap) mark. The shares of the IT behemoth were trading 4 per cent above previous closing mark at Rs 3,545 on the BSE at 10.30 am, thus hitting an all-time high.
By definition, market capitalisation is the value of a company that is traded on the stock market, calculated by multiplying the total number of shares by the present share price.
At 10.30 am, the market value of the company stood at Rs 6,79,332.81 crore ( $102.6 billion).
Last week, when the markets closed on Friday, the company was at the verge of the milestone as the m-cap stood at slightly above $99 billion. TCS stock had surged more than 6 per cent on Friday.
The rise in the TCS scrip’s fortune came after the it posted a rise of 4.5 per cent in its Q4 net profit. In the January-March quarter, the company reported a net profit of Rs 6,925 crore, up 4.57 per cent against Rs 6,622 crore posted in the same quarter last year. On top of that, the company announced a 1:1 bonus for its shareholders. This is the third bonus share offering by the company since its listing in 2004. TCS had allotted 1:1 bonus shares in 2006 and 2009.
The Tata group flagship, which contributes around 85 per cent of the group’s profit, reported a revenue growth of 8.2 per cent at Rs 32,075 crore for the three months to March. In dollar terms, the company had its highest revenue growth in 14 quarters at 11.7 per cent.
“With robust deal wins and green-shoots in banking, financial services and insurance (BFSI) sector, there is definite possibility of double-digit revenue growth. With growth acceleration, scale up in digital and support from currency, margins are ready for uptick as well, implying return of double-digit revenue/earnings growth after 3 years,” Edelweiss Research said in a note.