Indian IT companies come out with better results

by khalid on 17/12/2009 · 0 comments

Indian IT Companies

The results of many IT companies surprised analysts positively and their stocks outperformed the broader market indices in recent times. The BSE IT Index surged by around 30% compared to 5% rise in Sensex in the last four months.

The performance of some top-tier IT companies is as mentioned below.

1. Tata Consultancy Services (TCS) During the September ’09 quarter, TCS reported a topline growth of 3.2% sequentially, mainly attributed to 5% growth in volumes. Pricing and productivity, however, declined on a sequential basis. The result was better than expected and it further bolstered positive sentiments pertaining to the IT sector.

2. Infosys Technologies Ltd IT bellwether Infosys Technologies recorded a 2.1% jump in its rupee-denominated revenue on a sequential basis. The volume rose by 2.3% mainly on account of a 3% increase in off-shore volumes. The company set a positive tone for the Indian IT sector by revising its FY10 guidance upwards. The result beat market estimates. The company has also indicated it would hire 2,000 more employees than what it did in the previous quarter.

3. Wipro Ltd Wipro reported a 3.2% sequential growth in its dollardenominated revenue, which is marginally higher than expectations. Unlike its peers, the company reported a 1.5% decline in volumes but pricing grew sequentially. However, it delivered an impressive growth in bottomline with around 140 basis points expansion in its IT services operating margin. Overall, the result was not as impressive as that of its other peers.

4. HCL Technologies Ltd It reported 4.2% sequential growth in revenue, backed by an impressive 2.7% volume growth. The management of the company, however, maintained a cautious outlook about the next two quarters’ growth. It could not manage its hedged position well and reported a forex loss of Rs 150 crore. This dragged down its net profit by 3.1% sequentially. Without forex loss, however, the bottomline grew at 12.3% sequentially.

Source : Nirmal Bang

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