India at its best: TCS surpasses Accenture to become most-valuable IT firm globally

TCS, IT services, is a consulting and business solutions institute offering amazing services to international enterprises. This Thursday, the largest software exporter of India, Tata Consultancy Services(TCS) became the most valuable information technology company internationally overtaking its competitor Accenture for the very first time by dominating in market capitalization. Tata Consultancy Services has also recently increased the salary of its employees. This is on account of the good performance of the company.

 On Thursday, TCS closed 3.19% higher at Rs 2,825 on BSE which has brought its market capitalization to $144.73 billion. Whereas the value of Accenture is currently at $143.4 billion on the Nasdaq. On the other hand, IBM’s market capitalization is at $118.2 billion currently. Shares of TCS were strengthened on Thursday by more than expected performance in the second quarter ended September. The firm announced a buyback worth Rs 16,000 crore. The company also declared an interim dividend of Rs 12 for every share.

 Also, the company says in a report that revenue rise was 3% on a year on year(YoY) to Rs 40,135 crore. It also reported that global clients are spending more on cloud and digital projects. This is to keep pace with changes in businesses resulted from the COVID pandemic. A report by Motilal Oswal Research recently says that “The company impressed with the growth in revenue by 4.8% quarter on quarter(QoQ). Broad-based growth across the world signals healthy recovery across different segments.”

 TCS reported a 6.87% dip in the quarter of September sum of Rs 7,504 crore. But, there is a faster recovery in the demand than projected and will be continuously going ahead as well. Several analysts said that the main aspect of the improved performance of TCS compared to the previous quarter was that the TCS had experienced a sharp jump back in growth in key verticals like Retail & CPG, BFSI, and Lifesciences.

 TCS continually improves its human capital by acquiring the best-talented people available in each of the sectors and markets it operates in. That is why it’s the world’s most valuable company.

 With its new hit in share price TCS isn’t just the most valued IT Services Company in India but become the most valued globally. 

This year, IBM is in third place, Accenture in second position and TCS at first place. As per the Bombay Stock Exchange (BSE), TCS worth is $144.73 billion and that of Accenture is $143.4billion capitalized by NASDAQ. On October 8, TCS stock closed over 3% higher value. TCS share price has gone up more than 30% since January and since the pandemic outbreak TCS stock is 70% up. “This is very commendable as almost all of its performance has come on the back organic growth, low employee attrition and high EBIT margins”, said Nirmal Bang, an online stock and share market trading company.

 In the September quarter of FY21, TCS revenue was up by 4.8% and the profit growth is nearly 7%. The company’s board of directors approved a share buyback worth INR 16,000 crore, a move which some people expect other IT industries to follow.

 India’s largest software exporter Tata Consultancy Services (TCS), which went past IBM’s market capitalisation on Monday, is about 11 per cent away from turning more valuable than Adobe Inc.

 The Tata group company’s revenue has risen 12 per cent on a compounded basis in the past five years.

 Tata Consultancy Services became the second Indian firm after Reliance Industries to attain a market valuation of more than Rs 10 lakh crore. It overtakes the Accenture for the first time in the year and became the world’s most valuable IT company.

 Among all the other Indian companies, Tata Consultancy Services is only behind Reliance Industries in terms of market capitalization which is at nearly USD 215 billion.

 TCS managing director said ” The company’s positioned strongly to benefit from secular demand drivers. We also want to say we are in the midst of sustainable demand recovery and this recovery has some more legs to go.”

 The company reported a profit after tax of Rs 7,475 crore for the quarter ended September 2020, registering a 6.7 percent sequential growth. Following the rally in its share price, the company’s market valuation jumped Rs 69,082.25 crore to reach Rs 10,15,714.25 crore at close of trade on the BSE.

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