Tata Consultancy Services’ market capitalisation has surpassed that of US technology giant IBM.
After Monday’s trade, TCS’ market cap stood at Rs 8,37,198 crore, or over $120.49 billion, on the National Stock Exchange. In midday trade on the New York Stock Exchange, IBM’s market value was about $119.8 billion. Mumbai-based TCSNSE 0.50 % still lags Accenture, which has a market cap of a little over $124 billion.
IBM has been restructuring its business as it tries to focus on higher margin technologies and software while moving away from the commoditised parts of its business. Last week, it was reported that the company was laying off about 2,000 workers. IBM has a headcount of over 3,50,000. The US company has struggled to grow in the recent past, with a 1 per cent increase in its top line in 2018 snapping a six-year streak of falling sales.
Operating margins, calculated as revenue minus expenses, stood at 25.6 per cent, which TCS CEO Rajesh Gopinathan termed in April as “the highest among IT services firms globally”.
In India, TCS became the most-valued firm by market capitalisation after it overtook Reliance IndustriesNSE 0.44 %.
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