IT Sector – Q3 FY20 Results Analysis

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In this article, you will get the latest quarterly result updates of IT sector companies comprising in NIFTY 200 index. Updated as on 15th Feb, 2020.

IT Sector Analysis

In this article, you will get the latest quarterly result updates of IT sector companies comprising in NIFTY 200. Updated as on 15th Feb, 2020.

We have already covered five sectoral analysis – Construction/ Realty sector, FMCG sector, Healthcare sector, Auto & Auto Ancillary sector and Banking, Finance & Insurance sector.

Detailed Stock Analysis by Invest Yadnya
Detailed Stock Analysis by Invest Yadnya

Here, the percentage growth year-on-year (YoY%) as well as quarter-on-quarter (QoQ%) for the Market Capitalization (Mkt Cap), Revenue and Net Profit (PAT) of IT sector companies in NIFTY 200 is given.

Sr. No.Company NameM. Cap
QoQ%
M. Cap
YoY%
Revenue
QoQ%
Revenue
YoY %
PAT
QoQ%
PAT
YoY %
1HCL Technologies Ltd.8.00%19.20%3.50%15.50%8.60%13.00%
2Hexaware Technologies Ltd.-10.60%1.50%3.2%22.1%-8.7%35.8%
3Info Edge (India) Ltd.24.50%78.90%1.70%19.20%7.00%14.90%
4Infosys Ltd.-7.10%8.00%2.00%7.90%10.60%23.70%
5Larsen & Toubro Infotech Ltd.18.40%4.40%9.40%13.70%4.50%0.30%
6Mindtree Ltd.12.60%-5.80%2.70%10.00%45.90%3.00%
7Mphasis Ltd.-1.40%-8.00%5.50%15.50%7.40%5.60%
8Oracle Financial Services Software Ltd.-11.20%-26.50%-0.20%-2.20%27.30%49.30%
9Tata Consultancy Services Ltd.5.20%13.90%2.30%6.70%1.10%0.30%
10Tech Mahindra Ltd.8.20%4.30%6.40%7.90%-0.10%-9.00%
11Wipro Ltd.6.10%-4.30%2.30%2.70%-4.00%-3.30%
Average7.40%9.90%3.00%8.10%4.30%6.20%

Sector Update – IT Sector

  • Third quarter for this sector has been affected by weak global macro outlook regarding growth in 2020/FY2021 and less working days. Moreover, companies have not benefited much from the corporate tax cut of Sep 2019 as they were already in low tax brackets.
  • The reduction in growth was mainly due to reduced spending on IT services by Banking & Financial Services industry. Other sectors like Retail, Communication, Healthcare have contributed to the growth.
  • This quarter is considered as a weak quarter in IT due to less working days. As a result, only Tech Mahindra was able to sign new deals. It can be seen from its positive revenue growth.
  • L&T Infotech’s growth is supported by large deals in Insurance & Manufacturing sector and recovery from large accounts.
  • TCS is largely led by operational efficiencies and INR depreciation.
  • HCL Technology has grown in both IBM product (acquired in July 2019) as well as services segment.

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