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    TCS surpasses Accenture in m-cap to become world's most-valuable IT company

    Synopsis

    Shares of TCS were bolstered on Thursday by a better than expected performance in the second quarter ended September and a buyback announced by the firm worth Rs 16,000 crore. TCS also declared an interim dividend of Rs 12 per share.

    TCS closed 3.19% higher at Rs 2,825 on Thursday on the BSE bringing its market cap to $144.73 billion or Rs 10.6 trillion.

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    Mumbai: India's largest software exporter Tata Consultancy Services (TCS) on Thursday became the most-valuable information technology (IT) company globally as it surpassed rival Accenture for the first time in terms of market capitalisation.

    TCS closed 3.19% higher at Rs 2,825 on Thursday on the BSE bringing its market cap to $144.73 billion or Rs 10.6 trillion. Accenture is currently valued at $143.4 billion or Rs 10.52 trillion on the Nasdaq while IBM’s market cap is currently at $118.2 billion or Rs 8.67 trillion.

    Shares of TCS were bolstered on Thursday by a better than expected performance in the second quarter ended September and a buyback announced by the firm worth Rs 16,000 crore. TCS also declared an interim dividend of Rs 12 per share.

    The company had reported a 3% rise in revenue on a year on year to Rs 40,135 crore with global clients spending more on cloud and digital projects to keep pace with business changes exacerbated by the pandemic.

    Analysts said that the key aspect in the improved performance by TCS compared to the last quarter was that the company had seen a sharp bounce back in growth in key verticals like BFSI, Retail & CPG and Lifesciences.

    The company is expected to expand market share in global markets, including Europe, according to a note by analysts Sudheer Guntupalli and Hardik Sangani of brokerage ICICI Securities.

    “In Europe, our channel checks suggest the company is well positioned to win several upcoming large deals (in areas like CX/CI) given its edge over the competition. Aided 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,” they said.

    ET reached out to Accenture and TCS for comments on the matter.
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    3 Comments on this Story

    Captain Cloud51 days ago
    Lower growth rate and profitability put Accenture in a difficult situation versus Infosys and TCS.
    Pankaj Sharma53 days ago
    Good news, but, I think wonders will happens only when, IT accompanies from India will have their own products to rule the world.
    Working for MNC companies world over is nothing but a big company owning large number of white collar coolies.
    Dinesh Patel53 days ago
    by laying off thousands of employees in pandemic, Accenture has lost the edge of being ethical and employee friendly company.
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