TCS becomes first Indian IT company to cross $100 bn in market-cap

In terms of market capitalisation, TCS has the largest market-cap and is ahead of companies like Reliance Industries, HDFC Bank, ITC, Hindustan Unilever

Tata Consultancy Services (TCS) has become the first Indian $100 billion- dollar company in terms of market capitalisation (market-cap) in the IT pack, after the stock hit a new high on Monday in intra-day trade.

The counter hit a new high of Rs 3,557, up 4.4% in intra-day trade, extending its Friday’s 6.7% surge, as the company reported better-than-expected March quarter earnings in post market hours on Thursday. TCS also announced 1:1 bonus shares i.e. one bonus shares of Rs 1 face value each for every share held in the company to its investors.

Also Read: After 12 quarters, TCS sees double-digit growth in dollar revenue in Q4

The 11% rise in the company’s scrip in past two trading days helped it cross Rs 6.81 trillion ($103 billion) in market-cap at around 10:33 am, the BSE data shows. The rupee was trading at 66.21 against the US dollar.

However, at the end of Monday's trade, the market-cap dipped below $100 billion level (Rs 6.54 trillion) to $ 98.44 billion as the stock erased its entire morning gains to end flat at Rs 3,415. TCS currently accounts for 11% of the total market-cap of the S&P BSE Sensex of Rs 60.81 trillion.

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In terms of market capitalisation, TCS raks ahead of Reliance Industries, HDFC Bank, ITC, Hindustan Unilever, HDFC, Maruti Suzuki and Infosys.

In its recent report, analysts at Nomura, however, have maintained a reduce rating on the stock with a target price of Rs 2,750.

"We retain Reduce as we find valuations expensive at ~20x FY20F and see risk to street expectations of ~double-digit constant currency (CC) revenue growth and flattish margins. Our caution stems from: 1) large segments US/BFSI remaining weak, growing at low- to mid-single digits y-y, with clarity on BFSI still a quarter away amid risks from insourcing at large US Banks," Ashwin Mehta and Rishit Parikh of Nomura said in a recent report.

Tough times: Cognizant defers salary hikes, promotions by three months

IT major informed its employees that salary revisions and promotions would be effective from October 1. This process usually gets over by July.

Company News : Cognizant Technology Solutions (CTS) has pushed back promotions and salary hikes by three months due to slow growth and rising business costs.

The software services major informed its employees that any salary revisions and promotions would be effective from October 1, people in the know told Business Standard. This process usually gets over by July.

The company has 2,61,200 employees across the world.

The company's chief people officer, Jim Lennox, in a note to the staff said employees up to the manager level would receive “a percentage increase in their basic pay like previous years, while people at senior manager and above level would get a “lump sum” amount. This apart, they will get performance-linked bonuses.

For employees up to the level of vice president, according to the note, the new salaries would be effective from October 1. A Cognizant spokesperson declined to comment.

Some of the former and existing employees of the company said a delay in appraisal clearly hints at tough times for the IT industry and a large chunk of mid-level employees also fear job losses on account of slow growth and technology disruption.

This comes at a time when the company, like its peers such as Infosys, TCS others, reduced H1B visa applications and ramped up local hiring in their largest market in the US. This will certainly result in initial cost pressure, said analysts.

Wipro Q4 consolidated net rises marginally to Rs 2,267 cr

Board approves bonus issue in the ratio of 1:1; standalone net rises 20% on sequential basis

Wipro, India's third largest software exporter said fourth quarter profits grew 0.4% to Rs 2,267 crore on revenues of Rs 13,987.5 crore, a jump of 2.6%

The Bengaluru-based IT services firm said IT services revenue grew 2.7% over the previous quarter to $1.96 billion. For the fourth quarter, Wipro had projected growth between $1.9 billion-$1.94 billion or 1-2%.

Wipro has forecast its IT services revenue in the first quarter of the fiscal 2018 to be in the range of $1.92 billion to $1.96 billion.

Read more : TCS, Infosys got only 8.8% of total H-1B visas: Nasscom's rebuttal to US

“We delivered revenues within the guidance range in our fourth quarter,” said Abidali Z Neemuchwala, Chief Executive Officer of Wipro. “We are confident that the recovery in Energy & Utilities and our demonstrated strength in Digital will help us improve our growth trajectory during the course of the current financial year.”

Wipro's larger rivals Infosys and TCS too faced business and currency challenges in the quarter.

The company board approved bonus issue in the ratio of 1:1.

Standalone net profit jumped 20% to Rs 2,303 crore sequentially as compared to Rs 1,918 crore in December quarter. (more)

Black money window: FM Jaitley to meet industry chambers, CAs

Black money window: FM Jaitley to meet industry chambers, CAs

Union Finance Minister Arun Jaitley will meet industry chambers, Chartered Accountants, and other professionals over the four-month window provided to holders of undeclared wealth to come clean.

According to reports, the Finance Minister will clear doubts about the four-month window provided to domestic blackmoney holders to pay their taxes and escape harsher penalties.

The Income Tax Department has already adopted a four-pronged strategy to ensure success of the scheme.

Prime Minister Narendra Modi had earlier warned the black money holders to take advantage of the scheme or face action.

This comes after the Prime Minister during his 'Mann ki Baat' address asked people to declare their undisclosed income by September 30, making it clear that this is the last chance to avoid problems that will follow after the window of opportunity closes.

"It will be better that you take advantage of the window provided and save yourself from the difficulties that you can face after September 30," he said.

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Bengaluru pips Tokyo, Tel Aviv in list of innovation hubs

Bengaluru pips Tokyo, Tel Aviv in list of innovation hubs

India has emerged as a new innovation ‘empire’ of choice by global corporates. Bengaluru - the information technology and start-up hub – has surpassed many global cities as a preferred destination for innovation centres, according to Capgemini’s study on ‘Innovation Empire’.

Bengaluru that has emerged as the fifth most preferred location for housing innovation centres, overtook Tokyo, Shanghai, Berlin, Tel Aviv, Munich and Chicago, said the report titled ‘Digital Dynasties: The Rise of Innovation Empires Worldwide’. In the previous report that captured data until July 2015, Bengaluru did not figure in the list of top 10 cities.

The report said Silicon Valley was no longer the hub for corporate innovation, as global enterprises were seeking talent pools beyond established hubs.

Between July 2015 and February 2016, four global enterprises set up their innovation centres in Bengaluru, the highest in Asia. During the same period, the number of innovation centres set up in Silicon Valley and London were five and four, respectively, the report added.

Among the companies to set up their innovation centres in Bengaluru are Airbus’ BizLab and Visa, whose new technology centre aims to house 1,000 developers, accelerating development of next-generation payment solutions.

Other than global corporates opening up more innovation hubs in Bengaluru, the city also hosts several billion-dollar Indian start-ups like Flipkart, InMobi and Mu Sigma, and attracts world-class technology, talent and investments.

Read more.