Software company Tata Consultancy Services (TCS) became the 2nd Indian firm ever to attain a market capitalization (m-cap) in excess of Rs 4 lakh crore. Reliance Industries, the 1st company to do so, achieved this feat way back in 2007.
The Mukesh Ambani led RIL has slipped considerably in the last couple of months. Its present m-cap is close to 2.75 lakh crores and is a distant second to TCS at the moment.
Meanwhile, the m-cap of the entire Tata Group zoomed to a mammoth 6 lakh crore.
TCS shares spiked more than 1 percent to Rs 2,048.15 at the Bombay Stock Exchange on Monday. The Tata Group company closed at a market capitalization of Rs 4,00,868.22 crore (Rs 4 trillion) at the end of the day's trade.
Shares of TCS have surged to more than 60 percent this year. The increase is indeed astounding given the fact that the benchmark Sensex has shed 3.54 percent during the corresponding period.
TCS, the largest exporter of software, has benefited largely due to a depreciating rupee. The Indian currency has slipped by 21 percent this year. It closed at 66 against the US dollar on Monday.
The fall in the currency tends to benefit export oriented companies like TCS as they generate revenue in dollar terms.
While the company is in the pink of financial health, the future also looks propitious. TCS is reportedly in talks with the Income Tax Department of India to sign a 5-year pact that entails upgrading the IT infrastructure of the latter.
"TCS is in final stages of signing the contract with IT Department. It will happen shortly. The projects involves upgrading the entire IT network to smoothen the process of sharing information as well as enhance coordination," sources familiar with the matter said.
In a similar development, the company inked a pact with Saudi Arabia's National Commercial Bank. Under the two-year agreement, TCS will implement a new core banking software platform for the bank.