In charts: How India’s IT giants fared in their weakest quarter
Subscribe to enjoy similar stories. As India’s leading information technology firms release their quarterly earnings, the picture remains subdued. Revenue growth continues to lag, and the absence of major deals, coupled with persistent attrition, underscores the sector’s ongoing challenges.
Still, a cautiously optimistic tone is emerging, fuelled by hopes of a recovering demand environment and increased client spending. Here’s what’s unfolded so far. First, the financials.
Quarterly results from Tata Consultancy Services (TCS), Infosys, HCL Technologies, and Wipro—released last week—reveal that revenue growth remains tepid. While the December quarter traditionally sees slower momentum due to seasonal furloughs and fewer working days, year-on-year figures also failed to inspire. The combined revenue growth for the top four players has struggled to exceed 3% in any of the last seven quarters, slipping further to just 1% in the December quarter.
TCS and HCL Tech both reported a drop in year-on-year revenue growth, with TCS at 5.6% and HCL Tech at 5.1%. Infosys posted an improvement, with revenue growth rising from 5.1% to 7.6%, while Wipro reported a marginal increase in topline after five consecutive quarters of contraction. Net profit figures offered some optimism.
TCS reported its strongest gains in six quarters, Infosys reached a three-quarter high, and Wipro hit at least a two-year peak. Sequentially, too, net profits improved for all except Wipro. Read this | Indian IT’s top 5 might end this fiscal year a little better than the last Looking ahead, the sector anticipates a potential rebound in the final quarter of the fiscal year.
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