TCS is valued more than IBM

Homegrown technology services major Tata Consultancy Services on Monday overtook IBM, one of the global technology majors, in terms of market capitalisation. At close of Monday’s trade, TCS’s market capitalisation was $120.5 billion (Rs.8.37 lakh crore), while in early trade in New York, IBM was at $119.6 billion, translating into Rs.8.32 lakh crore, BSE and Bloomberg data showed.

Incidentally, on Monday, TCS also pipped Reliance Industries (Rs.8.36 lakh crore), to take the top spot among the most valued Indian companies.

For fiscal 2019, TCS had a net profit of $4.5 billion from a total revenue of $21 billion, while the corresponding numbers for IBM, for the year ended 2018, were $8.7 billion from $79.6 billion. Over the years, while TCS, which was set up in 1968 as a division of Tata Sons, has been recording higher growth in revenues and net profit, IBM’s numbers had seen several ups and downs.

‘Big Blue’, initially IBM had entered India in the 1950s, but had to leave the country in the late 1970s. It then again entered India through a joint venture with the Tata Group, the promoters of TCS, in 1992. In 1997, IBM parted with the Tata Group and now operates independently.

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