Large Cap Tata Group Stock Jumps As ASX Inks Agreement, Gains 6% In 1-Week

Large cap Tata Group IT Software sector company Tata Consultancy Services Ltd shares rallied 0.39% to 3533.00 per share today after the company has signed an agreement with Australia's primary securities exchange, ASX, to provide a next generation clearing and settlement platform to service the Australian market. ASX will implement TCS' flagship product TCS BaNCS for Market Infrastructure to enable the transformation. TCS shares gained 33% in last 3-years.

Earlier it said, "ASX considers that the chosen product will allow it to provide a reliable, supportable and scalable platform that meets the needs of the Australian market now and into the future."

The TCS product will be used to replace ASX's existing platform for cash equities clearing and settlement. The new platform will be on a state-of-the-art technology stack with TCS BaNCS for Market Infrastructure and is proposed to be implemented in two releases. While the clearing service is expected to be delivered in the first phase, the settlement depository and sub‐register services will follow in the second phase.

This staged approach is expected to reduce overall delivery risk and help manage the impact on industry stakeholders.

ASX CEO Helen Lofthouse said, "This next phase of the project will be a multi-year undertaking and ASX will maintain our investment in the current CHESS platform to ensure it continues to operate efficiently and reliably until the replacement is implemented."

Vivekanand Ramgopal, President, BFSI Products & Platforms, TCS, said, "We are delighted to be ASX's choice for this transformation. Our selection is an affirmation of our track record in this mission-critical business, continuous investments in our products, and shared vision of how we see the future of Market Infrastructure Institutions in a technology-led world.

Tata Consultancy Services Shares Performance & Return: The stock's 52-week high price is Rs 3680. 00 per share and 52-week low price is Rs 3070.30 per share, respectively. The company has a market capitalisation of Rs 12,92,816.03 crore. Tata Consultancy Services shares soared 5% in last 2-weeks, gained 10% in last 6-months, and offered return of 8% in last 1-year. In last 2-years, TCS stock surged 2% and gained 33% in last 3-years. Tata Consultancy Services shares offered return of 95% in last 5-years.

TCS Q2 Result: TCS operating profit during Q2 soared 9.1% to Rs 14,483 crore and operating margins widened by 25 bps to 24.3%. It is worth mentioning here that in the Q2 results of TCS, the US Dollar revenue fell for the first time in 17 quarters. Revenue in US Dollar terms declared at $7.2 billion. Sequentially, the company's US Dollar revenue fell by 0.2%.

About ASX: ASX is one of the largest securities exchanges in the world with a market capitalisation of all listed entities on the ASX reaching AUD $2.5 trillion in FY23. ASX was created by the merger of the Australian Stock Exchange and the Sydney Futures Exchange in July 2006 and is an integrated exchange offering listings, trading, clearing, settlement, technical and information services, technology, data and other post-trade services.

About TCS: Tata Consultancy Services is an IT services, consulting and business solutions organization that has been partnering with many of the world's largest businesses in their transformation journeys for over 55 years. Its consulting-led, cognitive powered, portfolio of business, technology and engineering services and solutions is delivered through its unique Location Independent Agile^TM delivery model, recognized as a benchmark of excellence in software development.