TCS first Indian firm to top Rs. 5 lakh cr in m-cap|
Source: Onesource - Business Standard / 24 July 2014
Tata Consultancy Services (TCS) on Wednesday became the first Indian company to exceed Rs 5 lakh crore in market capitalisation. The company's share price touched a 52-week high of Rs 2,580.60, taking its market cap to Rs 5.6 lakh crore ($86.5 billion, at 60 a dollar).
This is more than the combined market cap of rival information technology companies Infosys (Rs 1,92,198 crore), Wipro (Rs 1,40,481 crore) and HCL Technologies (Rs 1,07,878 crore). TCS is also ahead of global competitors like Accenture and is within striking distance of SAP's $100 billion, though it is far behind IBM's $193.70 billion.
In a list of the world's most valuable companies, TCS has moved up to 103 from 139 at the beginning of the year. SAP is at 100.
Analysts believe TCS is well on its way to reach a $100-billion market cap in the next two years. "TCS has managed to maintain industry-leading growth; it can add to this through the inorganic route," said Raamdeo Agarwal, joint managing director, Motilal Oswal Financial Services.
At its current share price, TCS needs at least 20 per cent growth to touch the $100-billion mark, which analysts say is entirely possible.
Saurabh Mukherjea, CEO of institutional equities at Ambit Capital, said: "What a lot of people have not realised is how much of a behemoth TCS has become in the past four-five years. If you look closely, it has been creating one mid-sized IT company every four-five years. Can it keep pace? I think the scale effect will kick in sometime, but if it pursues inorganic growth, it can sustain this growth. I think what will, however, matter is the quality of growth."
A CLSA report had last year said TCS had the potential to become India's first company to reach $100 billion in market cap. "Scale and innovation in delivery should help it maintain its sector-leading margins and premium valuations. TCS is on track for mid-teens revenue growth - faster than the industry average. It might not be at the forefront of technology changes, but it is catching up fast," Nimish Joshi and Rohit Kadam had said in their report.
The firm's market cap is much ahead of ONGC's (Rs 3,48,208 crore) and Reliance Industries (Rs 3,31,403 crore). The growth in market cap of TCS is reflective of the firm's consistent performance over the past few years. For the first half of this year, the company managed to surprise the Street on all key parameters - net profit, margins and volume. With a strong start to the financial year, the management reiterated its stand that the company would do better than in 2013-14. TCS' market cap has been trending upwards over the past few years. At the end of March 31, 2011, it was Rs 2,31,438 crore. This rose almost 80 per cent by the end of March 31, 2014, to Rs 4,16,860 crore. Its market cap recorded a growth of 21.67 per cent over the past three years, much ahead of Infosys (0.44 per cent) and Wipro (4.46 per cent). Reliance Industries' market cap for the same period eroded 4.32 per cent. The only other stock that has done well is HCL Technologies.
Viju George of JPMorgan Equity Research in a report last month said TCS' market cap could have an element of 'safety' premium not only because of "its superior performance in a competitive industry but also out of its peers' performance (or the lack of it). The worry arising from the latter, in particular, might increase the Street's keenness to hold TCS." The only damper to this performance could come from a dip in the US market and a volatility in the rupee, said an analyst who did wish to be named.
Odisha targets Rs. 3,200 cr IT exports in FY15 (The state government had signed MoU with TCS, Infosys and Wipro)|
Source: Business Standard / 23 July 2014
The state government has set a target of Rs 3200 crore IT (information technology) exports in 2014-15, an increase of about 33.33 per cent over the previous fiscal.
Software exports from the state was Rs 2400 crore in 2013-14 compared to Rs 1945 in the previous year, representing 23 per cent increase.
The state government had signed MoU with Tata Consultancy Services (TCS), Infosys and Wipro for opening of their development centres, which are operating from Bhubaneswar, the minister said.
The IT exports in FY14 included Rs 2,000 crore by STPI (Software Technology Parks of India) registered units and the balance Rs 400 crore by TCS, India's largest IT firm, having its centre in a Special Economic Zone (SEZ).
India's fastest growing companies (In superheavyweights category TCS is ranked no.1)
Source: Business World / 11 August 2014
N Chandrasekaran , MD & CEO of TCS has a passion for running marathons. Like most senior industry executives , he is on the road most of the time.But he ensures that wherever he is , his daily run isn't missed.In fact , Chandra as he is called , encourages colleagues to run with him , which he says " has helped in bonding better as a team".
The ability to run marathons even while taking the team along has ensured that TCS , the largest Indian IT services exporter , continues to set the pace for the sector.
TCS to invest in new types of technologies to boost growth |
Source: OneSource (The Gulf Today) / 18 July, 2014
Tata Consultancy Services (TCS), India's biggest software services exporter, is investing in new technologies such as cloud computing, joining rival Infosys in chasing high-margin outsourcing contracts to respond to growing competition.
"You'll never see a $100 million deal but there will be lots of smaller deals adding up to a digital initiative which will be larger," TCS Chief Executive N. Chandrasekaran said, after the company reported a 26.9 per cent rise in quarterly profit.
He said digital technology, which includes cloud computing and mobile applications, was a "multi-billion dollar opportunity" for IT outsourcing services providers.
Growing competition and slowing growth has forced India's outsourcing companies, which had thrived for decades by writing software codes and providing IT infrastructure services, to look to higher margin services to increase revenues.
Research firm Gartner this month cut the worldwide IT spending growth outlook for 2014 to 2.1 per cent from an earlier estimate of 3.2 per cent due to lack of product differentiation and availability of "viable alternative solutions."
Infosys, India's second-largest IT services exporter, last week said it would boost investment in cloud computing, smartphone applications and other new technologies to win more high-margin outsourcing contracts.
"I don't think anyone can afford to stay out of this sector. Digital has grown bigger than what the industry thought it would be, with all sectors getting into it," Ravi Menon, IT sector analyst with Mumbai-based Centrum Broking.
We still need to crack the code in China: N. Chandrasekaran|
Source: OneSource - Live Mint / 19 July 2014
N. Chandrasekaran , chief executive officer and managing director of Tata Consultancy Services Ltd (TCS), remains bullish about the prospects of TCS, India's largest information technology (IT) services provider. On Thursday, the company reported sharp increases in fiscal first quarter profit and revenue, beating analysts' estimates. In an interview on Friday, Chandrasekaran said he believes growth has returned to the US and UK economies, the main markets for IT firms, even though he is still cautious about the Indian market's growth prospects. He added that the company's digital drive continues to pay dividends, both for TCS and its clients. Edited excerpts: Would you say that happy days are here again for the Indian IT industry, and that companies will be able to beat (industry body) Nasscom's fiscal year 2015 revenue growth forecast of 13-15%? I will be in a better position to comment once all the fiscal first quarter IT results are declared. That said, the asking rate of 13-15% is difficult for many companies. Nasscom speaks to all companies before giving the estimates, so I would not want to second-guess that.
So what's working for TCS? You have done well in most countries...
I think we are executing well and finding the right opportunities, and the markets are doing well too. In terms of specific geographies, good growth has returned to the US and UK, and we continue to diversify in other markets.
How have smaller geographies fared for you?
While the Middle East, Africa, Latin America and India are very important to us, we have to get the right business mix and scale up. We have taken care of Australia and Japan, but we still need to crack the code in China and also build a strategic presence in other Asia-Pacific markets like Malaysia, Indonesia, China and Hong Kong.
Your company has crossed the 300,000 employee organization mark, making it one of the largest employers. At the same time, non-linear (not headcount-related) growth is becoming important. How long will it be before we see a clear 70:30 or 80:20 ratio mix between linear and non-linear initiatives?
We are following both linear and non-linear strategies. Even if non-linear picks up, I don't want to let go of linear growth, as we have good talent available and we are able to manage both. We like to keep the flexibility. We also have a fantastic training programme for freshers, whom we are actively hiring. We believe we are investing ahead of the curve since the last two-three years, and we have still been able to capture deals and execute.
TCS today has 100,000, or slightly over 32% of its total workforce, women employees. But there is no woman director on the board...
We had a woman director who retired and now we are on the lookout for a replacement.
In the light of TCS becoming a force to reckon with among the top global companies, what are you doing in terms of managing cultural diversity?
We have more than 110 nationalities in the company today and have local teams in all the geographies where we operate. These employees all have the same TCS values and TCS way of doing business instilled in them.