Tata Consultancy Services (TCS) topped the $200-billion market capitalisation mark on Wednesday as the stock extended this year’s winning run.
Shares of TCS logged a new lifetime high of Rs 3,980 before settling at Rs 3,955, up 1.8 per cent over previous day’s close. Shares of TCS are up 35 per cent this year amid a sharp rally in IT stocks. At the closing price, the Tata group flagship had a market cap of Rs 14.63 trillion ($199.2 billion).
Currently, only Reliance Industries (RIL) has a higher market cap among domestically listed companies at Rs 15.81 trillion ($215 billion). Earlier this month, RIL had become the first company to cross the $200-billion mcap milestone.
The Indian IT sector has been on an upwards trajectory with pandemic resulting in an acceleration of digital transformation. The gains are evident in the growth number of companies. The same is true for TCS that has seen a huge uptick in its services from clients.
For the Q1 FY22, the company reported revenue growth of 18.5 per cent year-on-year at Rs 45,411 crore. It also reported a total contract value of $8.1 billion, the deal signing was driven by growth across industry and verticals. With robust margins, profits have also been growing at a good pace, allowing companies to reward shareholders through dividends, share buybacks, etc.