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Indian IT biggies on a roll as global clients spend more
It looks like good days are ahead for the $146-billion Indian IT sector. After the Tata Consultancy Services (TCS) and Infosys Technologies which reported better than expected results earlier this month, it was the turn of the Azim Premji-owned Wipro to come out with the first quarter financial results on expected lines on Thursday.
Software majors TCS, Infosys, Wipro post better results in Q1 due to increase in spending by the US and Europe customers
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Hyderabad: It looks like good days are ahead for the $146-billion Indian IT sector. After the Tata Consultancy Services (TCS) and Infosys Technologies which reported better than expected results earlier this month, it was the turn of the Azim Premji-owned Wipro to come out with the first quarter financial results on expected lines on Thursday.
All the three IT giants owe their success during the April-June period to an increased spending by their big clients from the US and Europe. Mumbai-based TCS, a part of Tata Group, registered 12.8 per cent upswing in its net profit to Rs 5,708.9 crore in the first quarter against Rs 5,057.8 crore a year ago. Its revenues went up by 16.1 per cent year-on-year to Rs 25,668 crore, the highest growth among the peers.
TCS chief N Chandrasekaran talked about a robust rebound in the North American markets and said during the announcement of Q1 results that the company clocked good growth in some verticals about which it was cautious. According to him, global clients are making significant investment in digital.
Infosys, India’s second largest software company, saw its net profit go up by five per cent to Rs 3,030 crore in the Q1 from the year-ago period. The company’s revenue zoomed by 12.4 per cent to Rs 14,354 crore as its 10 biggest clients, most of who are from the US, outsourced more work to Infosys for the first time in five years.
The better-than-expected Q1 results encouraged Infosys to increase growth forecast from 6.2-8.2 per cent to 7.2-9.2 in dollar terms for the entire current fiscal. The US market accounts for more than 60 per cent of its total revenues. Wipro, the country’s third largest services firm, posted a four per cent upswing in its net profit at Rs 2,187.7 crore in the first quarter ended on June 30, 2015, compared with Rs 2,103.2 crore in the same period a year ago.
The IT giant’s total income climbed by 10 per cent to reach Rs 12,894.8 crore for the three-month period, against Rs 11,669.4 crore a year ago. The IT major also attributed its success to higher spending from its global clients, including those from the US and Europe.
The impressive performance of TCS, Infosys and Wipro, the IT bellwethers, paints rosy picture for the India IT sector, leading to more software jobs for Indians in the days to come, but contrasts with the forecast made by Gartner, the US-based IT research and advisory firm, which estimated that global IT spend in dollar terms would fall by 5.5 per cent in 2015.
By:P Madhusudhan Reddy
