TCS overtakes Accenture to join elite $100 billion market capitalisation companies like IBM

Last Updated: Mon, Apr 23, 2018 12:33 hrs
A private security guard stands at the exit gate of the headquarters of TCS in Mumbai

Mumbai: Tata Consultancy Services Ltd (TCS) on Monday crossed the $100 billion market-capitalisation benchmark, becoming the country's largest Information Technology (IT) consulting services firm to achieve this feat. The stride aided TCS in overtaking Accenture's market-capitalisation of $98.20 billion.

This despite Accenture posting revenues of $34.90 billion for the fiscal ending 2018. TCS in comparison had posted annual revenues of $19.1 billion. TCS has been in favour with the street pundits after it posted more than expected earnings on Thursday last week. The company reported profits after 13 consecutive quarters of under performance. The company also announced a 1:1 bonus and a Rs 29 final dividend that improved sentiments among investors.

The company's revenues in terms of dollar currency increased 3.9% to $4.97 billion in the quarter. Net profit eased to 5.7% to $1.07 billion in the March quarter from $1.01 billion in the preceding three months. The operating margin improved from 25.4% from 25.2% during the October-December period.

The company announced results on Thursday and saw shares rising 2.65% by Monday to Rs 3496 per share. Since Thursday, there has been a bull-run for shares of TCS.

TCS's market capitalisation makes it among the most valuable international technology companies. TCS ranks 97th among the world's largest and most value tech organisations, according to Bloomberg data. Among its peers, IBM's (International Busines Machines) market cap stands at $133.48 billion. With this, TCS joined the ranks of the world’s 100 most valued organizations and now ranks 97th.

Mukesh Ambani driven Reliance Industries had already touched the $100 billion mark but the current Bloomberg estimates show a m-cap of $89.36 billion.

"TCS continues to execute solidly for a company of its size. Its recent deal wins have also been strong, and it appears to be transitioning to digital services well. However, even with growth acceleration in FY19, we expect earnings CAGR of around 10-11%," said Credit Suisse in note dated April 19. Credit Suisse expects revenue acceleration to peak to 9.9% in FY19 from in revenues in 6.7% in FY18.

The company priced its IPO at Rs 850 a share during 2004, and within a single year touched a market capitalisation of $10 billion. the company took four years to achieve the current milestone fro $75 billion that it had achieved in 2014.

More from Sify: