Indian Economy News

IT giants report 14–20% topline growth in the third quarter

  • IBEF
  • January 16, 2023

India’s IT services tightened their defence against global uncertainties and turbulent markets, as the giants produced topline growth between 14 – 20% year over year for the December quarter, but they were optimistic that prices, as well as business concerns, will drive tech demand. Large IT giants Tata Consultancy Services (TCS), Infosys, Wipro, and HCL Technologies announced their Q3 report cards this week, kicking off the IT earnings season amid analysts' bleak predictions about the downturn in advanced nations and their concern over geopolitical flare-ups.

For the reporting quarter, TCS' total revenue increased by 19.1% to US$ 7 billion (Rs 58,229 crores). Mr. Rajesh Gopinathan, the Chief Executive and Managing Director of India's largest IT services company stated that although there are short-term uncertainties, Europe needs closer monitoring as geopolitical tensions prevent clients from spending on IT. The company is more confident about its North American and British operations, which account for two-thirds of its revenues.

Between October and December 2022, Infosys' consolidated net profit increased by 13.4% to US$ 809 million (Rs 6,586 crores) against US$ 714 million (Rs 5,809 crores) in the previous year. Net profit increased by 9.4% over the September quarter sequentially. The company raised its annual sales forecast on a strong deal pipeline, but in the same breath, it warned of “constraints” in certain verticals amid a slowing global economy.

In constant currency terms, Wipro expects its IT services revenue to grow between -0.6% and 1% sequentially in the quarter ending March 2023. For the whole year, Wipro anticipates that revenue from the IT services sector would range between 11.5 - 12% in constant currency terms. In the Q3 FY23, Wipro's revenues totalled US$ 2.8 billion (Rs 23,229 crores), a 14.3% increase over the same period in the previous year.

HCL Tech, with headquarters in Noida, reported a 19% growth in the consolidated net income of US$ 503 million (Rs 4,096 crores) for the last quarter. From US$ 2.7 billion (Rs 22,331 crores) in the quarter ending in December 2021, its consolidated revenue increased by 19.56% to US$ 3.2 billion (Rs 26,700 crores) in the quarter under report. HCL Tech reduced its forecast for current fiscal growth to a range of 13.5–14% for overall revenue in constant currency terms and 18–18.5% for margin.

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