On Monday, the country’s largest IT outsourcing company Tata Consultancy Services (TCS), created history by becoming the first Indian company to reach the $100 billion market capitalization (m-cap) mark.
The shares of the huge IT were trading 4 percent above previous closing mark at Rs 3,545 on the BSE at 10.30 am, thus hitting an all-time high.
By definition, market capitalization is the value of a company that is traded on the stock market, calculated by multiplying the total number of shares by the present share price.
The market value of the company stood at Rs 6,79,332.81 crore ( $102.6 billion), at 10.30 am.
On Friday, Last week, when the markets closed the company was on the verge of the milestone as them-cap stood at slightly above $99 billion. TCS stock had surged more than 6 percent.
The rise in the TCS script’s fortune came after it posted a rise of 4.5 percent in its Q4 net profit. In the January-March quarter, the company reported a net profit of Rs 6,925 crore, up 4.57 percent against Rs 6,622 crore posted in the same quarter last year. On top of that, the company announced a 1:1 bonus for its shareholders. This is the third bonus share offering by the company since its listing in 2004. TCS had allotted 1:1 bonus shares in 2006 and 2009.
The Tata group flagship contributes around 85 percent of the group’s profit, reported a revenue growth of 8.2 percent at Rs 32,075 crore for the three months to March. In dollar terms, the company had its highest revenue growth in 14 quarters at 11.7 percent.