Indian software services major Tata Consultancy Services (TCS) became the most valued IT company worldwide on Monday (January 25), surpassing Accenture. The market valuation of TCS had crossed $169.9 billion on BSE, ahead of American-Irish multinational Accenture, on Monday morning. Accenture has a $168 billion market cap on the New York Stock Exchange (NYSE).

Before this, TCS has raced ahead of Accenture twice — once in 2018, and then again last year, in October. However, last October when TCS zoomed past Accenture, it was the first time that it had claimed the title of the most valuable IT services company in the world. In 2018, though TCS had gone ahead of Accenture, IBM was at the top of the market then with 300 percent more revenue than TCS.

The TCS share price went up significantly over the course of the past two weeks led by the company’s better-than-expected earnings for the quarter ending December 2020.

On January 11, the share price of the company had hit a fresh 52-week high of Rs 3,224.00 apiece. The IT major had reported a 7.2 percent sequential rise in consolidated net profit at Rs 8,701 crore in the third quarter of fiscal 2021 backed by strong demand-led revenue growth.

TCS beat street estimates in Q3FY21

Consolidated revenue during the quarter increased 4.7 percent QoQ to Rs 42,015 crore. It rose 5.4 percent on a year-on-year basis. The company’s constant currency revenue growth was at 4.1 percent QoQ and 0.4 percent YoY. The growth was ahead of analysts’ expectations as the CNBC-TV18 poll had an estimated 2.8-2.9 percent growth. TCS had said that it was the strongest third-quarter growth in the last nine years.

Rajesh Gopinathan, Chief Executive Officer and Managing Director of TCS, had then stated: “Growing demand for core transformation services and strong revenue conversion from earlier deals have driven a powerful momentum that helped us overcome seasonal headwinds and post one of our best performances in a December quarter.”

(Edited by : Abhishek Jha)