India’s leading software services company Tata Consultancy Services reached a milestone by becoming the first information technology firm to cross a market capitalization of 13 trillion rupees (US$174 billion).

Reliance Industries is the only other Indian firm to have crossed this mark.

Tata Consultancy Services scrip touched a 52-week intra-day high of 3,560.25 rupees on the Bombay Stock Exchange to attain a market cap of more than 13.14 trillion rupees. It has been quoting higher for the ninth trading day, out of 12 days so far in August.

An increase in outsourcing in Europe, vendor consolidation and a healthy deal pipeline has helped the Mumbai-headquartered software major post robust growth in the banking, financial services and insurance, communication, manufacturing, retail and hi-tech verticals.

A unit of salt-to-software conglomerate Tata Group, the company has been a key beneficiary of multi-year growth (15-20%) in digital technologies.

For the quarter ended in June this year, Tata Consultancy Services had reported a 28.5% rise in net profit at more than 90 billion rupees against 70 billion rupees in the year-ago quarter. Its revenue from operations in the June quarter grew 18.5% to 454 billion rupees from 383 billion rupees last year.

During the June quarter, Tata Consultancy Services won contracts worth $8.1 billion, with the North American market contributing nearly half – $4 billion. It added 18 clients in the $10 million to $50 million bracket and 29 clients in the $1 million to $10 million bracket.

Set up in 1968, Tata Consultancy Services now employs more than half a million people spread across various geographies and is the country’s largest private-sector employer.

When the Covid-19 pandemic hit India and the government announced a strict countrywide lockdown in March 2020, the company implemented remote work on a large scale and nearly 96% of its India-based employees worked from home.

The company witnessed a boost in productivity through remote work and by 2025 it says no more than 25% of its employees will need to work from the office.

The company’s rivals Infosys, Tech Mahindra and Wipro too are doing well in the stock market and analysts believe increased technology spending will be there for the medium to long term as more and more companies adopt digital and cloud technologies.