TCS Market Cap Hits ₹15 Lakh Crore: The largest IT company in the nation, Tata Consultancy Services (TCS), made history today in trading when it became the first company to reach a market capitalization of ₹15 lakh crore. The second-most valuable Indian company is the Tata Group.
TCS shares increased by 4% during today’s trading session to reach a new high of ₹4,135 per share, exceeding their previous high of ₹4,043. Notably, a full year later, the stock exceeded ₹4,000. The stock has recovered sharply from its October low of ₹2,926 and has gained nearly 40% so far.
When accounting for the all-time high price of the stock, the company’s market capitalization reached ₹15.13 lakh crore.
The company announced to investors in an exchange filing on Monday that it had secured a new contract from a major international assistance and travel insurance provider, Europ Assistance, to help rethink its global IT operating model for improved resilience, scalability, and user experience. This news sparked today’s rally.
According to the company’s exchange filing, “Tata Consultancy Services will leverage its delivery centers in Europe and across all geographies where Europ Assistance operates to provide end-to-end enterprise IT application services as part of the new deal.”
The use of ignio AIOps, the company’s AI platform, will revolutionize the IT operations of Europe Assistance by enhancing resilience, scalability, and agility.
The solution, which is driven by AI and ML, will boost availability and productivity by giving Europe Assistance useful insights into its technology stack, according to TCS.
The company and Aviva, the top insurance, wealth, and retirement provider in the UK, announced a 15-year extension of their partnership in January 2024. The goal of the partnership is to use the TCS BaNCS-based platform to improve customer experience and revolutionize Aviva’s UK Life business.
In Q3 FY23, the company’s consolidated net profit dropped by 2.48% on a quarterly basis to ₹11,097 crore, according to its financial reports. A net profit of ₹11,380 crore was reported in the previous quarter (Q2 FY24).
Net profit increased by 2% when comparing the year-over-year (YoY) performance. The company reported a net profit of ₹10,883 crore for the same quarter last year. A one-time charge of ₹958 crore towards the settlement of a legal claim had an impact on the company’s net profit during the quarter.
In Q3, TCS reported a total revenue of $8.1 billion, which was less than the $11.2 billion reported in Q2FY24 and was outside of the company’s $9–10 billion quarterly guidance range.
The Tata Group’s stocks are presently rising at a noteworthy rate, and TCS is not the only notable company exhibiting strong performance. Among them, Tata Motors is particularly notable. As the only Nifty 50 stock to accomplish this feat in the year, the stock ended CY23 with a multi-bagger return of 101%. The positive momentum continues into CY24, with the stock already delivering an impressive return of nearly 20%.
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