On Tuesday’s session, the share price of a large cap IT company declined by 0.6 percent at Rs 3,434 to its intraday low from its previous close. After the federal court ordered the company to pay 210 million dollars.
Tata Consultancy Services (TCS) has been ordered to pay DXC Technology 210 million dollars after a jury in federal court in Dallas, Texas, found the company guilty of stealing trade secrets from DXC Technology.
TCS has denied the allegations and said that it will continue to prosecute the case. However, the company has already taken a 125 million dollar provision for the third quarter following the jury’s verdict.
TCS was sued by DXC’s precursor, Computer Sciences Corp, in 2019 for misusing its access to CSC’s software to create a rival life insurance platform. TCS was found to have “willfully and maliciously” exploited DXC’s trade secrets by the jury, and DXC was awarded 140 million dollars in damages. DXC also owes TCS 70 million dollars for stealing its trade secrets.
TCS is having a hard time right now because of the verdict because other IT majors are becoming more of a rival to the company. Transamerica, a major TCS customer, terminated its 10-year agreement with the company two years ahead of schedule in June.
In addition to their recent filling, TCS has started its AWS generative AI practice to assist clients in leveraging generative AI to transform their businesses. In order to manage its IT operations on AWS and move its systems to the cloud, Wyndham Hotels & Resorts has selected TCS as a strategic technology partner. This move will allow the company to invest in data standardisation for future innovation.
According to the Tata Consultancy Services (TCS) report, the company’s net revenue increased 8 percent year on year from Rs 55,309 crores in Q2FY23 to Rs 59,692 crores in Q2FY24. In addition, net profit rose 8.7 percent year on year, from Rs 10,465 crores in Q2FY23 to Rs 11,380 crores in Q2FY24.
The promoters own 72.30 percent of the shares in Tata Consultancy Services (TCS), with domestic institutional investors holding 10.01 percent, foreign institutional investors at 12.47 percent, and the public holding the remaining portion.
Tata Consultancy Services (TCS) is a large-cap stock that has increased by 5.3 percent year to date and 3.5 percent over the last six months.
Tata Consultancy Services is an IT services, consulting, and business solutions firm that has been assisting many of the world’s largest corporations in their transformation journeys for over 50 years. TCS provides consulting-led, cognitive-powered, integrated business, technology, and engineering services and solutions.
Written by Sriram KV
