The shares of IT giant Tata Consultancy Services Limited (TCS) closed in the red today at Rs 3,238.50, dipping around 0.60 percent compared to the previous closing levels of Rs 3,258.20. The company has a market capitalization of Rs 1,184,983 crores.
The company, through a regulatory filing with the BSE, announced the expansion of a long-standing partnership with ‘Nest’, the largest workplace pension scheme in the United Kingdom (UK), to focus on transforming the latter’s administration services using its platform powered by TCS BaNCS. In addition to the same, the partnership will also aid in delivering better retirement outcomes for people across the UK.
As per the filing, the contract is signed for £840 million (Rs 8,798 crores) with an initial tenure of ten years. Moreover, the contract value, if extended to the entirety of its eighteen-year tenure, is estimated to be £1.5 billion.
The company’s annual numbers have observed a decent growth in the basic financial parameters such as the operating revenues as well as the net profits generated by the company.
The operating revenues went up from Rs 191,754 crores during FY21-22 to Rs 225,458 crores in FY22-23 and the net profits, keeping the timeframe the same, moved from Rs 38,449 crores to Rs 42,303 crores.
Moreover, the profitability ratios have seen a jump with the return on equity shifting from 42.99 percent during FY21-22 to 46.61 percent in FY22-23 and the return on capital employed (ROCE), during the same time period, going up from 52.91 percent to 57.63 percent.
The latest shareholding pattern data exhibit the Promoters holding a 72.3 percent stake, and Foreign Institutional Investors (FIIs) holding a 12.72 percent stake in the company.
Based in Mumbai, Tata Consultancy Services Limited is an Information Technology (IT) services provider with traditional offerings that include cloud infrastructure services, consulting, etc. The company derives half of its revenues from the North American regions.
Written by Amit Madnani
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