TATA CONSULTANCY SERVICES (TCS) became the first Indian company in a decade to breach the $100-billion market value barrier after stocks in the IT giant soared on Monday (23).
Shares in India’s largest software exporter rose more than four per cent following positive earnings results to hit a high of `3,557 (£38.32) on the Bombay Stock Exchange’s Sensex index.
The surge was spurred by a TCS earnings report released last Thursday (19) which showed the technology company had enjoyed a 4.4 per cent rise in consolidated net profit year-on-year for the quarter ending March. It propelled the firm’s market capitalisation value to `681 trillion, above $100bn, as TCS became just the second Indian company in history to cross the symbolic mark.
Reliance Industries, the energy-to-telecoms conglomerate owned by Asia’s richest man Mukesh Ambani, was the first Indian group to breach the $100-bn marker, back in 2008.
TCS recorded net profits of `69.04bn, beating many analysts’ expectations.
“We are indeed delighted and thankful to our employees and customers who have been instrumental in achieving this milestone,” said TCS CEO and managing director, Rajesh Gopinathan.
TCS was at the forefront of India becoming a back office to the world as companies – largely in developed nations – subcontracted work, taking advantage of the country’s skilled English-speaking workforce. The flagship industry has made India a top business destination by offering software development and information technology, engineering and design and other services.