TCS market value tops $100 billion
NEW HIGH Becomes second Indian company to cross mark MUMBAI/BENGALURU:
In its 50th year, Tata Consultancy Services Ltd on Monday scaled the $100 billion mark in market capitalisation, becoming only the second Indian company, after Reliance Industries in 2007, to do so. Even as analysts debated if its share price was fairly valued, there is no dispute over the scorching growth pace which saw India’s largest information technology (IT) services firm add $10.9 billion in revenue over the last seven years.
Put simply, since the beginning of FY12, TCS has added one Infosys Ltd, India’s second-largest IT company, which ended FY 18 with $10.94 billion in revenue, to its top line.
Rajesh Gopinathan, CEO & MD, TCS said, “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”
Significantly, for now, TCS’s larger number of new deal wins suggests that the gap between India’s top two software services providers, will only increase.
In the January-March quarter, TCS claims to have won over 450 small digital deals with a combined value of more than $1 billion, according to a senior executive of the company. TCS’s deal wins in digital—the fuzzy umbrella term which each company uses to classify revenue generated from areas generally classified as social, mobile, analytics, cloud computing and Internet of Things – is higher than the $905 million worth of total deal wins, including rebids and new wins, by Infosys in the fourth quarter.
“We believe that our thought leadership framework of Business 4.0 should help us continue on the right profitability and growth path for the company,” chief operating officer, N Ganapathy Subramaniam said in an interview last week.
This widening gap between TCS and Infosys—from $1.46 billion in 2008 to $8.15 billion in 2018 culminates the resurgence in fortunes begun by Natarajan Chandrasekaran, the current chairman of Tata Sons, who took over as CEO of TCS in November 2009.
TCS chief operating officer, N Ganapathy Subramaniam said “Chandra (N Chandrasekaran) always believed in giving a much larger role to people he believed had potential, and so the organisational change we undertook was a phenomenal move. We organised ourselves into smaller units. Each of the units was run by leaders, who were told to run it the way they wanted”
“I sometimes call TCS the ‘Indian IBM’ because of the longevity of its staff and unique culture,” said Phil Fersht, chief executive officer (CEO) of US-based HfS Research, an outsourcing-research firm. “The firm has stayed very focused on relentless execution and is less obsessed with marketing messages and trying to sound like everyone else.”
“What we have accomplished is that we have added this capability of adding a cylinder to a moving car. Now how we understand is that Digital is not technology. It is a series of technologies. This is why we have defined Business 4.0 under which we can come up with new offerings, without say destabilising a car. And credit to Rajesh (Rajesh Gopinathan) and our team for remaining focused on delivering what our clients want,” said Subramaniam.