On Monday, Tata Consultancy Services (TCS), India’s largest IT outsourcing company created history by becoming the first ever Indian company to reach the $100 billion market capitalization mark. The shares of the IT giant were trading 4 percent above previous closing mark at Rs 3,545 on the BSE at 10.30 am, thus hitting an all-time high.
In simple words, market capitalization 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.
Currently, the market value of the company stood at $102 billion.
When the markets closed on Friday last week, the company was only a step away from hitting 100 billion-mark as it stood slightly above $99 billion. On Friday, TCS stock had surged more than 6 percent.
TCS witness the rise in the fortune after it posted a rise of 4.5 percent in its Q$ net profit. The company reported a net profit of Rs 6,925 crore in the January-March quarter. This showed that there was 4.57 percent hike in the net profit as compared to last year when the net profit was Rs. 6,622 crore in that same quarter. Also, 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 percent of the group’s profit, reported a revenue growth of 8.2 percent at Rs 32,075 crore for the three months to March. In terms of dollars, the company had its highest revenue growth in 14 quarters at 11.7 percent.
“With robust deal wins and green-shoots in banking, financial services and insurance (BFSI) sector, there is a definite possibility of double-digit revenue growth. With growth acceleration, scale up in digital and support from currency, margins are ready for the uptick as well, implying return of double-digit revenue/earnings growth after 3 years,” Edelweiss Research said in a note.