A Mixed Bag For Top-Tier IT Companies

An overview of the verticals and geographies that drove the performances

- Vivek Ananth

In a quarter that is traditionally weak for IT services companies, the December results of India’s top four companies in the sector — Tata Consultancy Services, Infosys, HCL Technologies and Wipro — were a mixed bag.

TCS managed to retain its margins, while Infosys continued to post decent revenue growth, despite a slowdown in core services revenues. HCL Tech posted good revenue growth, helped by its nascent products and platforms business.

Wipro, despite reporting decent growth in revenues, gave muted sequential revenue growth guidance for Q4FY20.

TCS

For the quarter ended December 31, 2019, TCS posted a revenue of ₹39,854 core, up 2.2 per cent quarter-on-quarter. The consolidated net profit came in at ₹8,118 crore, up 1.1 per cent.

TCS’ revenue growth has continued to slow as the banking and financial vertical is still facing some challenges in the US and the UK.

Although the retail and CPG (consumer packed goods) vertical is facing some headwinds in the face of some clients holding back spends, it posted 3.3 per cent q-o-q revenue growth in dollar terms. The vertical could continue to remain volatile for TCS going forward.