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TCS gains after announcing acquisition of French IT firm

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Capital Market
Last Updated : Apr 18 2013 | 6:01 PM IST

The company made the announcement during trading hours today, 9 April 2013.

Meanwhile, the S&P BSE Sensex was up 30.01 points or 0.16% at 18,467.79.

On BSE, 26,000 shares were traded in the counter as against average daily volume of 1.30 lakh shares in the past one quarter.

The stock hit a high of Rs 1,504 and a low of Rs 1,478 so far during the day. The stock had hit a record high of Rs 1,598 on 7 March 2013. The stock had hit a 52-week low of Rs 1,046.55 on 23 April 2012.

The stock had underperformed the market over the past one month till 8 April 2013, sliding 6.51% compared with the Sensex's 6.33% fall. The scrip had, however, outperformed the market in past one quarter, surging 14.07% as against Sensex's 6.61% fall.

The large-cap IT firm has equity capital of Rs 195.72 crore. Face value per share is Re 1.

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TCS said that the acquisition of Alti SA will strengthen TCS' ability and footprint to service its customers in France and other regions in Europe. Alti SA is a leading French technology services firm with strong expertise in IT services including Enterprise Solutions, Assurance and CRM solutions. Alti SA is a privately-held company owned by its management and two private equity funds, CM-CIC LBO Partners and IDI, which supported its growth from a revenue base of euro 64 million in 2007 to euro 126 million in 2012, TCS said. The company's key customers comprise several top French corporations in the banking, financial services, luxury, manufacturing and utilities sectors.

Commenting on the acquisition, Mr. N Chandrasekaran, CEO and Managing Director, TCS said, "This acquisition underlines our long-term, strategic commitment to France, which is the third largest IT services market in Europe. The acquisition of Alti SA will help us serve our clients in France and across Europe more comprehensively with an expanded set of services and solutions, bringing the best of TCS to French corporations. I am confident that this acquisition will help us accelerate our growth and presence in France".

Andre Bensimon, co-founder of Alti SA said, "This is a significant step that will benefit both our clients and employees. Supplementing our current services with TCS' renowned global expertise will provide tremendous additional value to our clients; while our employees will secure the advantages of building their careers in a larger global organization, which is considered a Top employer in Europe".

TCS' consolidated net profit rose 3% to Rs 3549.62 crore on 3% growth in sales to Rs 16069.93 crore in Q3 December 2012 over Q2 September 2012.

TCS is an IT services, consulting and business solutions organization. It offers a consulting-led, integrated portfolio of IT, BPO, infrastructure, engineering and assurance services.

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First Published: Apr 09 2013 | 11:04 AM IST

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