Sep 06, 2013, 10.30 PM IST
The domestic market for IT players has been so weak that any project coming in from the government is a big deal and the tax department has gone all out with this particular software project that they have come out with. The deal value is pegged at around Rs 200 crore.
TCS has pipped Infosys in bagging a large deal for the tax department, reports CNBC-TV18's Kritika Saxena.
The domestic market for IT players has been so weak that any project coming in from the government is a big deal and the tax department has gone all out with this particular software project that they have come out with.
The deal value is pegged at around Rs 200 crore. Term is approximately 5 years, but is likely to be extended further.
Essentially this is to setup and manage a software platform called the ITBA in order to ease tax payers process of tax application, of e-filing etc and also to kind of tighten the noose around tax evasion, etc., which is something that tax department has been focusing on.
Sources say, the difference between Infosys and Tata Consultancy Services (TCS) bid has been quite substantial - indicating that TCS pricing strategy is much ahead of its peers.
There were three players that they were looking at. Tax department was finalizing TCS, Infosys and Wipro . It actually came down to TCS and Infosys and TCS’s bid was around Rs 200 crore, whereas Infosys was around Rs 350-360 crore. This deal will give TCS a big leg up in terms of expanding in this particular area.
TCS stock price
On December 12, 2013, at 13:43 hrs Tata Consultancy Services was quoting at Rs 2031.80, down Rs 24.75, or 1.2 percent. The 52-week high of the share was Rs 2258.05 and the 52-week low was Rs 1197.60.
The company's trailing 12-month (TTM) EPS was at Rs 77.28 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 26.29. The latest book value of the company is Rs 165.73 per share. At current value, the price-to-book value of the company is 12.26.
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