TCS Soars on Hydrogen Partnership with Rolls-Royce: Stocks Rise 1%
Key Ideas
- Tata Consultancy Services' shares surged by 1% to an intraday high after announcing a collaboration with Rolls-Royce to research hydrogen fuel technology.
- The company aims to address challenges in hydrogen fuel systems for aviation, leveraging its expertise to support Rolls-Royce in system and component design.
- Financially, TCS witnessed a revenue increase but a slight decrease in net profits on a YoY basis, with strong return ratios and a nil debt-to-equity ratio in 2024.
- TCS also reported a 1% rise in its total employee base and disclosed a shareholding pattern dominated by promoters, with significant foreign and domestic institutional investors.
Tata Consultancy Services (TCS) saw a 1% surge in its stock price reaching an intraday high following the announcement of a partnership with Rolls-Royce to research hydrogen fuel technology. The collaboration aims to explore hydrogen as a zero-carbon aviation fuel of the future, focusing on improving fuel combustion, delivery, and integration with engines. TCS will provide skilled engineers to assist Rolls-Royce in addressing these challenges.
Financially, TCS's consolidated revenue increased by 2.2% YoY, reaching Rs 62,613 crores in Q1FY25, while net profits saw a slight decrease. The company reported robust return ratios, including a 50.73% return on equity and a 63.51% return on capital employed in 2024, with no debt-to-equity ratio. Additionally, TCS witnessed a 1% growth in its employee base.
The shareholding pattern of TCS in June 2024 revealed a dominant ownership by promoters, along with significant holdings by foreign and domestic institutional investors. Established in 1995 and headquartered in Mumbai, TCS is a key player in IT services and solutions, offering a wide range of business and technology services. This collaboration with Rolls-Royce signifies a significant step towards advancing sustainable aviation fuel technology.