On Thursday, Tata Consultancy Services (TCS), India’s largest software exporter became the most-valuable information technology (IT) company globally as it surpassed rival Accenture for the first time in terms of market capitalization.
On Thursday, TCS closed 3.19% higher at Rs 2,825 on the BSE fetching its market cap to $144.73 billion or Rs 10.6 trillion. Accenture’s valuation stood at $143.4 billion or Rs 10.52 trillion on the Nasdaq and IBM’s market capitalization is $118.2 billion or Rs 8.67 trillion.
Stocks of TCS rallied on Thursday, with TCS delivering better than expected performance in the second quarter ended September and a buyback announced by the firm worth Rs 16,000 crore. An interim dividend of Rs 12 per share was also declared by TCS.
With global clients spending more on cloud and digital projects to keep pace with business changes exacerbated by the pandemic, the company had reported a 3% rise in revenue on a year on year to Rs 40,135 crore.
The company witnessed a sharp bounce back in improvement in key verticals like BFSI, Retail & CPG and Lifesciences, which according to the analysts became the driving force for the improved performance of TCS compared to the last quarter.
According to a note by analysts Sudheer Guntupalli and Hardik Sanghani of brokerage ICICI Securities, the company is expected to expand market share in global markets, including Europe.
According to the experts In Europe, TCS is well-positioned to win several upcoming large deals (in areas like CX/CI) given its edge over the competition. Assisted by its prior expertise of handling M&A led systems/process integration projects post GFC, TCS should benefit from a similar trend post-Covid-19.
TCS announces salary hike for employees
TCS, the world’s biggest IT company today announced that salary hike for its employees will be rolled out effective October 1. As of September 30, 2020, TCS consolidated headcount stood at 453,540.
With a focus on upskilling and innovative training methods, TCS declared it is continuing investments in organic talent development. TCS announced the company’s employees logged in 10.2 million learning hours in Q2, a 29% rise over the prior quarter. More than 352,000 employees have been trained on multiple new technologies, and over 427,000 have been trained in Agile techniques.
IT services attrition rate hits an all-time low at 8.9%, it said.
“We wish to impart all TCSers for the unbelievable resilience they need to be shown throughout these making an attempt time. we have a tendency to area unit happy to announce that we’ll be rolling out the regular payment will increase, effective Gregorian calendar month first. we have a tendency to started onboarding freshers and enhanced our accomplishment globally in Q2, in anticipation of the expansion of mechanical phenomenon we have a tendency to see ahead, aforementioned Milind Lakkad, international Head, Human Resources.
India’s prime package bourgeois TCS nowadays aforementioned it might repurchase shares value up to ₹16,000 large integers whereas reportable a seven.1% fall in quarterly profit.
Consolidated lucre for the September quarter fell to ₹7,475 large integers from ₹8,042 large integers a year earlier, because the company put aside ₹1,218 large integers beneath exceptional things associated with a U.S. lawsuit.
Analysts on the average had expected a profit of ₹7805 large integers, consistent with Refinitiv information.
TCS aforementioned its consolidated revenue for the amount rose three-d to ₹40,135 crores.
The robust order book, a really sturdy deal pipeline, and continued market share gains offer United States of America confidence in the long run.”
India’s biggest IT company is nowadays aforementioned that regular payment hike for its workers is going to be unrolled effective Gregorian calendar month one.