Business

TCS Becomes First Indian Company To Breach $100 Billion Market Value

DIVYIA ASTHANA | 0
4076
| April 23 , 2018 , 14:48 IST

India's largest IT outsourcing company, Tata Consultancy Services (TCS) on Monday created history as it became the first Indian company to reach the $100 billion market capitalisation (m-cap) mark. The shares of TCS hit an all-time high and were trading 4 percent above the previous closing mark at Rs 3,545 on the BSE at 10:30 AM.

The market capitalisation is defined as the value of the company traded on the stock market and is calculated by multiplying the total number of shares by the present share price. Accordingly, at 10:30 AM on Monday, the market value of the company reached $102.6 billion (Rs 6,79,332.81 crore).

ALSO READ: TCS Rated As World's Most Powerful Brand In IT Services

TCS was on the verge of the milestone from Friday itself, as when the markets closed the m-cap stood at slightly above $99 billion as the stocks surged more than 6 percent on Friday.

In the January-March quarter, TCS had reported a net profit of Rs 6,925 crore, an increase of 4.57 percent from the Rs 6,622 crore posted in the same quarter last year. In addition, the party announced a 1:1 bonus for shareholders in the third bonus share offered by the company since the listing in 2004. In the past, TCS had allotted 1:1 bonus shares in 2006 and 2009.

"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.