India's largest software services exporter Tata Consultancy Services made history on Monday by becoming the first listed Indian IT firm to cross the $100-billion market-capitalisation level helped by a record quarterly profit and a weaker rupee, but lost the position by end of the trading day.
The feat gave the Tata Group flagship entry into the elite club of world's 100 most valued organisations, ranking at 97. There are 96 firms with over $100 billion market cap, according to Bloomberg data. Reliance Industries (RIL), led by the country's richest man Mukesh Ambani, was the last Indian firm to make it past the mark way back in 2007. RIL now has a market valuation of $89.36 billion.
TCS crossed the coveted mark within the first hour of trade, registering a market valuation of Rs 6.81 lakh crore. Its shares rose 4.4% to hit an intra-day high of Rs 3,557 apiece on BSE.
However, it lost most of its early gains at the end of Monday's trade and its market-cap dipped to $98.8 billion (Rs 6.53 lakh crore). The TCS scrip ended at Rs 3,415.20, up 0.26 per cent. On NSE, TCS shares settled at Rs 3,408.65, up 0.18 per cent.
The achievement also helped TCS beat US-listed rival Accenture's market capitalisation of $98 billion, though Accenture ended financial year 2017-18 with revenues of $34.90 billion, far higher than TCS' $19.1 billion. It also put the Tata company market capitalisation at 52 per cent higher than all the other IT index firms put together. So far this year, the company's shares have risen 26.5 per cent.
"We are indeed delighted and thankful to our employees and customers who have been instrumental in achieving this milestone - what is exciting for us is the whole business 4.0 journey and the great opportunity to be a digital partner of choice to our customers in their growth and transformation journey," said TCS CEO & MD Rajesh Gopinathan.
Tata Group chairman N Chandrasekaran called it a special moment they had been waiting for. We always believed that the opportunity in tech space and TCS is very large, he added. On Friday, the company added over Rs 40,000 crore to its valuation, coming very close to achieving the $100-billion milestone.
TCS reported better-than-expected quarterly numbers on Thursday, posting a 4.4 per cent rise in consolidated net profit at Rs 6,904 crore for the fourth quarter of 2017-18 which ended on March 31. It registered a net profit of Rs 6,608 crore in the same period last financial year, according to a regulatory filing.
The board recommended a 1:1 bonus share issue. For the financial year 2017-18, TCS' net profit dipped 1.7 per cent to Rs 25,826 crore, while revenue rose 4.3 per cent to Rs 1.23 lakh crore. Leading brokerage firms have raised their target price on TCS stock by up to 28 per cent as the company's March quarter earnings beat market expectations.
The Mumbai-based Tata group flagship started trading in 2004 and became a $25-billion company in 2010. It is now the country's most valued firm followed by Reliance Industries with a market valuation of Rs 5.92 lakh crore, HDFC Bank (Rs 5.01 lakh crore), ITC (Rs 3.35 lakh crore) and Hindustan Unilever (Rs 3.14 lakh crore).