India’s top 5 technology firms – Tata Consultancy Services Ltd (TCS), Infosys Ltd, HCL Technologies Ltd, Wipro Ltd and Tech Mahindra Ltd -- are likely to set a new milestone by posting combined revenue of over Rs 1 trillion for the quarter ended September 2019 (Q2), according to a report in Deccan Herald.
In the June quarter, the collective revenue of the five companies was Rs 99,800 crore. Just a 0.2% sequential increase in revenue will help these IT firms breach the Rs 1 trillion mark during the September quarter. Notably, according to analyst estimates, the top 5 firms are expected to clock a cumulative revenue of Rs 1.03 lakh crore in Q2 –a 3.5% jump on a sequential basis.
According to the report, HCL Technologies Ltd is expected to be the best performer among the five IT firms,with most analysts expecting a double-digit revenue growth of 17-19%, courtesy the integration of the high-margin IP business.
Infosys may also clock double-digit revenue growth in Q2 in the range of 9-11% on the back of integration of Stater NV in the company during the quarter. TCS, on the other hand,may grow 5-7%, while Wipro is likely to grow 3-4%, according to the report.
In terms of net profit, the top 5 IT firms are likely to post combined profit of around Rs 17,800 crore. Except Infosys, all other IT firms may see their profit after tax (PAT) decline on a sequential basis during the September quarter, the report added.
Indian IT sector is expected to outperform other sectors during the second quarter as it mostly derives its revenue from the US markets and remains unaffected from the domestic economic slowdown. To top it, a weakening rupee is also likely to benefit the Q2 numbers of the IT firms.
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