The shares of this largecap company jumped around 1 percent in Tuesday’s trading session after expanding its partnership with Google Cloud to offer AI-Powered Cybersecurity Solutions.
Price Movement:
With a market capitalization of Rs. 16,43,209 crores, the shares of Tata Consultancy Services Ltd started Tuesday’s trading session on a flatter note at Rs. 4,521.05. During the trading session, the shares hit a high of Rs. 4,555.90, gaining around 1 percent and are currently trading at Rs. 4,538 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced it has expanded its partnership with Google Cloud to offer two new cybersecurity solutions for customers.
This partnership aims to strengthen cyber resilience for enterprises across industries and empower them with domain-focused innovation with cutting-edge technologies from TCS and Google Cloud.
TCS expanded its partnership to offer two solutions i.e., TCS Managed Detection and Response solution and TCS Secure Cloud Foundation solution.
As per the filing, these solutions will enhance the threat detection and response capabilities of businesses, even in non-cloud environments and will help TCS customers create forward-looking and secure businesses.
Furthermore, the company stated that it has successfully implemented both solutions for several clients. For instance, the Secure Cloud Foundation solution has helped a major global bank in Germany automate and manage over 800 security policies, ensuring compliance with regulatory requirements.
Financials:
Looking at the company’s financial performance, the revenue increased marginally by around 2 percent from Rs. 61,237 crores during the March quarter to Rs. 62,613 crores in the June quarter. On the other hand, the net profits declined by 3 percent from Rs. 12,502 crores to Rs. 12,105 crores during the same period.
The Tata Group company derives 50 percent of its revenue from the American markets. Additionally, 31.3 percent of its revenue comes from the European markets, while the remaining 18.7 percent is generated from the Asia Pacific, India, and MEA regions.
This indicates a significant reliance on the American market for revenue generation, followed by Europe and other regions.
Generative AI pipeline:
In recent times, GenAI has emerged as a crucial growth driver for IT companies amid continued challenges in discretionary spending. Following Accenture, TCS was the only major IT firm to disclose its GenAI deal pipeline figures. By Q4, TCS’s GenAI pipeline had doubled to USD 900 million, with more than 200 active engagements.
In the first quarter of the fiscal year 2024-25 (Q1 FY25), Tata Consultancy Services (TCS) reported a total contract value (TCV) of USD 8.3 billion. This figure represents a decrease of 18.6 percent year-on-year and a 37 percent decline sequentially from the previous quarter, where TCS had signed TCVs worth USD 13.2 billion.
Company Profile:
Tata Consultancy Services is the flagship company and a part of the Tata group. It is an IT services, consulting and business solutions organization that has been partnering with many of the world’s largest businesses in their transformation journeys for over 50 years.
TCS offers a consulting-led, cognitive-powered, integrated portfolio of business, technology and engineering services and solutions.
Written By Vaibhav Patil
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