Tata Consultancy Services (TCS) is on the cusp of making history. India's biggest outsourcer is close to becoming a 100 billion dollar company in terms of market capitalisation or market value. Shares of TCS Friday surged by nearly 7 per cent, making investors richer by over Rs. 400 billion in a day, reports NDTV.
At end of Friday's market trading, TCS had a market capitalisation of Rs. 6.52 lakh crore, according to BSE data. The rupee weakened past the 66 mark Friday against the dollar. Deal wins in the quarter to March helped the Mumbai-headquartered company post its biggest-ever net profit in the quarter. TCS had announced its earnings after market hours on Thursday.
TCS posted a net profit of Rs. 69.04 billion, beating analysts' average estimate of Rs. 67.98 beating. TCS, part of salt-to-software conglomerate Tata group, reported Rs. 320.75 beating as income from operations, a rise of 8.2 per cent from a year ago.
Looking ahead, TCS expects a rebound in spending by its key banking, financial services and insurance (BFSI) clients this financial year. India's top software services exporter is more confident about BFSI revenues from North America as client discussions show there is "not much stress left in the system," and this could potentially translate into better client spending through the course of the year, said CEO Rajesh Gopinathan.
Mr Gopinathan said TCS' early investments in digital technologies such as cloud, analytics and big data were paying off as the company remained well-positioned to transform clients' businesses.
"The ability to transform comes from our ability to participate right from the back-end to the front-end and have a full spectrum of solutions." Mr Gopinathan said.
"TCS delivered a strong set of performance in Q4 with a beat on dollar revenues and profit," said domestic brokerage Prabhudas Lilladher in a note. And going ahead, "digital remains the key driver for incremental growth for TCS," it added.
In dollar terms, TCS reported revenue of $4,972 million, up 3.9 per cent quarter-on-quarter and up 11.7 per cent year-on-year.
