MUMBAI: Tata Consultancy Services Ltd (TCS) on Monday created history by entering the coveted $100-billion market capitalization (m-cap) club.
The software services firm, the second Indian company to achieve this feat after Reliance Industries Ltd, overtook multinational firm Accenture Plc, whose m-cap stood at $98.20 billion.The firm joins the ranks of the world’s 100 most valued organisations and is now ranked 97th.
Reliance Industries, which first broke into the $100-billion club in 2007, now has a market capitalization of about $89.36 billion.
On Monday, TCS’ scrip rose as much as 2 per cent to touch an all-time high of `3,496 per share, but it crossed the $100 billion hurdle when shares touched Rs 3,447 a piece. The TCS scrip has been on a roll for the past three trading sessions, thanks to the better-than-expected quarterly earnings announced last week. It also announced a 1:1 bonus share issue, which further boosted investor sentiment. The firm has gained more than 27 per cent this year as against the 1.1 per cent gain in the S&P BSE Sensex Index.
The dollar revenue of TCS increased 3.9 2 per cent to $4.97 billion during the March quarter, while net profit jumped 5.7 per cent to $1.07 billion from $1.01 billion in the preceding three months. Operating margin improved 20 bps to 25.4 per cent from 25.2 per cent in the October-December period.
“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,” Tata Sons Chairman N Chandrasekaran said.