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Updated: 04/11/2009 | 12:00 AM IST
TCS hardens on large overseas deal
Capital Market
Wednesday, November 04, 2009 (New Delhi)
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Tata Consultancy Services rose 1.56% to Rs 617 at 9:55 IST on BSE, on reports the company secured a 150 million pounds software implementation contract for 15 years from Cardiff city council, UK.

Meanwhile, the BSE Sensex was up 168.09 points, or 1.09%, to 15,573.03.

On BSE, 10,790 shares were traded in the counter as against an average daily volume of 5.94 lakh shares in the past one quarter.

The stock hit a high of Rs 619.30 and a low of Rs 613.90 so far during the day. The stock had hit a 52-week high of Rs 656.85 on 26 October 2009 and a 52-week low of Rs 219.58 on 3 March 2009.

The large-cap stock had outperformed the market over the past one month till 3 November 2009, falling 3.87% as compared to the Sensex's 10.09% fall. It had also outperformed the market in the past one quarter, rising 14.45% as compared to the Sensex's return of 3.26%.

The company's equity capital is Rs 195.72 crore. Face value per share is Rs 1.

The current price of Rs 617 discounts the company's Q2 September 2009 annualized EPS of Rs 27.54, by a PE multiple of 22.40.

As per reports, Tata Consultancy Services (TCS) will support the council's information, communications and technology function.

The council is the governing body for the city of Cardiff, which is the capital of Wales in the UK. It comprises 75 councilors, representing 29 electoral wards.

In late October 2009, TCS signed a multi-million dollar deal with a Singapore state organization to provide annual application management services for two years.

TCS had on 29 September 2009 secured a contract from Carnation Auto for providing end-to-end system integration services. As per the multi-year agreement, TCS will provide service for enterprise information technology (IT) solution implementation and includes business consulting, technology implementation & support.

TCS Financial Solutions, a strategic business unit of TCS had on 22 September 2009 bagged contracts worth $25 million from different players for implementing its financial software products in the Asia-Pacific and the US.

TCS' consolidated net profit rose 6.81% to Rs 1623.90 crore on 3.16% growth in revenue to Rs 7435.10 crore in Q2 September 2009 over Q1 June 2009.

TCS provides IT and business process outsourcing services. The group provides services to industries such as banking and financial services, insurance, manufacturing, telecommunications, retail and transportation.

Promoters have pledged 22.21 crore shares representing 11.35% of the equity capital of the company. Total promoter shareholding in the company is 74.33% (as on 30 September 2009).

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