A leading provider of IT solutions and services has expanded its operational footprint with the acquisition of land and buildings to serve as a new delivery center, boosting capacity and strengthening its real estate portfolio.
Share Price Movement
On Wednesday, with a market capitalization of Rs 12,68,013 crores, the shares of Tata Consultancy Services Ltd. were currently trading at Rs 3,506.70 per equity share, down nearly 1.95 percent from its previous day’s close price of Rs 3,575.30. The stock is trading below its 52-week high by 31 percent.
What happened
Tata Consultancy Services (TCS) has announced the acquisition of Darshita Southern India Happy Homes Private Limited for Rs 2,250 crore in a move to expand its infrastructure capabilities. The acquisition involves purchasing 100% equity in the company through a call option after two years.
The Darshita Southern India Happy Homes operates in the commercial real estate sector and owns land and a building, which TCS plans to utilize as a delivery center. Incorporated in September 2004, the entity focuses on developing commercial properties for lease but has yet to generate revenue in the past three years. This strategic investment aligns with TCS’s long-term expansion plans, enhancing its operational capacity.
Order Book and Future Plans:
The company saw a YoY rise in $100M+ clients (+3), $10M+ clients (+17), and $5M+ clients (+29). The order book TCV reached $10.2B, with North America at $5.9B, BFSI at $3.2B, and Consumer Business at $1.3B.
The management remains optimistic about future growth, supported by strong deal wins and a healthy pipeline. While sector-specific challenges persist, they aim to offset the impact of the tapering BSNL contract through new opportunities and improved discretionary spending.
Key Financial Highlights
In Q3 FY25, the company revenues grew by percent to Rs 63,973 crores, compared to Rs 60,583 in Q3 FY24. Net profit grew by percent to Rs 12,444 crores, compared to Rs 11,097 crores.
The company’s operating margin declined to 24.5 percent compared to 25 percent YoY and the net margin remained flat at 19.4 percent. Earnings per share (EPS) grew by percent to Rs 34.22 from Rs 30.56 YoY.
Company Profile
Tata Consultancy Services (TCS), established in 1968 as a division of Tata Sons, is India’s largest IT services company. It pioneered offshore IT services in 1974 and has grown into a global full-service provider. TCS is a Tata Group company, with Tata Sons holding 71.7% equity.
TCS offers IT solutions, infrastructure services, consulting, engineering, and BPM solutions. Its software portfolio includes BaNCS (financial solutions) and health & life sciences industry solutions. The company’s key focus is on BFSI, along with retail, communication & media, manufacturing, and technology services. TCS has a strong global presence across the US, Europe, the UK, India, Asia Pacific, and West Asia.
Written by Shashi Kumar
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