TCS Attains Over Rupees 5 Trillion Market Cap
Feather In Its Cap: TCS Attains Over Rupees 5 Trillion Market Cap
India's leading software company based on its market cap, TCS has outrun its rivals by crossing a market value of Rs. 5 lakh crore which is a massive achievement for this company. TCS has also attained another distinction. Its market value is more than that of the next 4 IT companies following it in terms of success and profits. A special dividend of Rs. 40 declared last week has also attracted investors. India''s biggest IT services exporter, Tata Consultancy Services/TCS has been outdoing its peers on a consistent basis and the gap between it and its competitors is widening like never before. In FY10, the revenue difference between TCS and Infosys had reached Rs. 7, 559 crore though at the end of FY14, it reached Rs. 33, 313 crore . The difference in net profit between the 2 players is wide judging by the numbers.
While TCS always enjoyed a higher revenue base, it could not breach the superior operating profit margins of Infosys at one point in time. For now, this seems to be changing as well. At the end of FY14, TCS had an OPM of 29.1% and it was 25% for Infosys. TCS has over 3 lakh employees now. Infosys has 1 . 6 lakh employees currently. Clearly, TCS is all set to outdo its arch rival and Infosys has their task cut out for them .
TCS has set out this year on a positive note by recording a 5.5 percent sequential revenue growth in USD terms for the first quarter. Volumes are growing at 5.7%. Pradeep Mukherji, president, Avasant, an IT outsourcing advisory firm, has been quoted by Financial Express as saying, “TCS is one of the most robust companies in terms of their depth in leadership, range of offerings and the extent of geographic reach. Their DNA is completely different.”
When it comes to overseas, TCS is ready for the game. Its revenue is spread evenly across North America where it has 53% of the market share. The software giant also has 2.3% of the revenue from Latin America. Its CEO has certainly brought in new level aggression to TCS according to a senior industry executive of the company quoted by the media. The software giant also has the most diverse workforce with people from 118 countries working here. Sanchit Vir Gogia Chief Analyst and CEO of Greyhound Research has also appreciated the employee retention policies of TCS .
This could be a massive advantage for the IT company even as its contender Infosys is looking to inch up and get a bigger piece of the market share . If one takes the $100 million clients club into account, TCS has 24 as against 13 for Infosys. Wipro is currently at 10 . The Big 4- TCS, Infosys, Wipro and HCL Technologies account for about 40% of the IT services revenue . But when it comes to degrees of separation , more than a few separate the key players in the IT sector. Competition is rife in many sectors and the IT sector is certainly no different from the others when it comes to that. As the rivalry heats up, the game is set to have high stakes with massive profits on line.
