TCS gets a good 'rating'

It is after a really long time that we are hearing some good news for an IT company. TCS is in the limelight today for receipt of a contract.

The company has won a $2.25 billion outsourcing contract, the largest ever bagged by an Indian information technology firm, from television ratings measurement company Nielsen. And this is a renewal of an already existing 10-year deal which had begun in 2007.

In 2013, the deal size was more than doubled to $2.5 billion and extended by three more years until 2020 and it has been extended for another five years until 2025.

Under the $2.25 billion contract, TCS is assured of $320 million in business from Nielsen every year, beginning 2017 through 2020, $186 million in annual revenue from 2021 through 2024 and $139.5 million in 2025.

The stock price has reacted positively to this news. The stock which had closed yesterday at Rs.2594.10, opened today at Rs.2600, going on to an intra day high point at Rs.2620. Its 52-week high is at Rs.2774.