India's largest information technology (IT) services firm Tata Consultancy Services (TCS) overtook US technology giant IBM in market capitalisation. As of Monday's closing, the market cap of TCS stood at Rs 8.36 lakh crore on NSE whereas IBM was stable at Rs 8.31 lakh crore.
TCS has been holding the first position among the international pure-play technology service firms since 2018 when it just crossed a Rs 6.9 lakh crore market capitalisation. It has been growing with the help of mega-deals over the years and initiating industry-leading growth and working against a saturated market. It has increased its market capitalisation by about Rs 1.3 lakh crore within a year.
IBM, on the other hand, has been witnessing a drop in market capitalisation. It's market cap fell about Rs 97 thousand crore within a year. IBM has been trying to restructure its business and slash the workforce in large numbers since 2016. As many as 2,300 employees were let fo last month.
Even though there has been a fall in the market capitalisation, IBM has an excellent revenue streak of about Rs 5.5 lakh crore over TCS's Rs 1.45 lakh crore reported in the last financial year.
According to a statement to Economic Times, Rajesh Gopinathan, CEO of TCS, claimed that the operating margins stood at 25.6 percent, which is the highest among IT service firms globally.