TCS hits the golden spot, touches $100-billion; is India an IT services superpower?
Tata Consultancy Services (TCS) recently became the first ever domestic IT services company to touch the $100-billion figure in market capitalization. Throughout intra-day trade, the firm’s market capitalization marked $100 billion to hit Rs.6, 80,912.10 crore. Reliance Industries was the only other company to hit the $100-billion market cap figure more than 10 years back. The company’s market capitalization is over 52% more than the other IT index businesses.
TCS shares reached a skyrocketing high mark of Rs.3, 557 on the day it hit the $100 Billion mark. The share rate on that day, registered an increase of Rs.8.80, or 0.26% above the previous close. The company has already registered its utmost revenue growth, 11.7% and that to in just 14 quarters. TCS has not just set a new standard for themselves, but has also surpassed Accenture’s market cap of $98 billion.
TCS never took it easy since they hit the $25-billion mark in 2010, and team kept marching ahead to hit the $75-billion mark a year later, and now the 100 billion mark.
- Chandrasekaran, the chairman of Tata Sons took no time to pay gratitude towards the shareholders, and marked this achievement as a ‘proud and memorable’ moment for the company.
What helped TCS achieve this feat?
The boost in the TCS market cap came after it registered a net profit of over Rs.6925 crore. This figure implies that the profit is about 4.5 percent high in the fourth quarter. Also, TCS’s dollar revenue growth was the highest in 14 quarters.
Furthermore, the firm announced a 1:1 bonus for its stockholders at the end of fiscal year. This was the not the first time TCS provided bonus shares, this is the third time since 2004.
Indian IT Market size
The internet market in the country is expected to touch the $250 billion by 2020 and the IT and BPM industries are anticipated to grow to $350 billion by 2025. The country’s digital economy has the capability to go beyond the $4 trillion mark by 2022.
India’s Software Market is all set to take a big leap!
According to a research by IDC, Indian software industry is anticipated to grow at 11.9%, on a yearly basis to hit the USD 5.1 billion in 2018. India’s software industry is touted as one of the most aggressively growing and vigorous markets within Asia Pacific (excluding Japan) zone.
A host of noteworthy digital transformation initiatives as well as the drive for application modernization are the two key reasons which have led to the growth for the Indian software market over the years.
The Power & Future of Indian Software Industry!
The Indian software sector has grown at a great rate, and we are on the brink of becoming a frontier software service provider in the world. With firms like TCS, Infosys etc. doing a wonderful job nationally, as well as globally, the time is not far behind when Indian Software Power will be a force to reckon with!
The $154 billion Indian software services industry, which is led by companies like Tata Consultancy Services, Infosys, is all set to rock the digital services, analytics, e-commerce and Internet of Things domains among other dedicated fields. Though, digital service, mobile computing, Artificial Intelligence, cloud computing, VR, software-as-a-service are the recent, big long-term prospect for most Indian IT companies.
The core capabilities and strengths of the IT industry in India have enticed noteworthy investments from many countries. The software and hardware sector in the country attracts a good Foreign Direct Investment. Also, some of the best Indian IT firms like TCS, Infosys, Wipro, Tech Mahindra, are expanding their services and exhibiting prominent ideas in AI, block chain to clients using modernization, research and development hubs, to provide illustrious offerings.
India, a digital-ready economy remains a great potential market globally as it provides several opportunities. Together along with a nuanced approach as well as intense skill levels, IT firms are anticipated to come up with a lot of revolutionary solutions in almost every walks.