India’s three largest exporters of software and IT services – Tata Consultancy Services (TCS), Infosys Ltd and Wipro – on Wednesday released solid third quarter figures. While Infosys reported exceptional results exceeding street expectations for the period ending December 31, TCS and Wipro were in line with market expectations.
Traditionally, the third quarter is considered a low for Indian IT exporters due to a reduced number of billable days and holidays abroad, especially around Christmas and New Years in the third quarter. .
Global digitization helps
However, this year, driven by the ongoing digital transformation, made necessary by the Covid pandemic, companies around the world have called on the services of IT players to transform their industries.
Driven by this secular trend, widespread on demand, and aided by their cost competitiveness, IT services companies are experiencing strong growth.
The nation’s largest IT services player, TCS, said it reached key revenue of more than $ 25 billion, even as it announced an 18,000 crore buyback program. With $ 6.524 billion in the third quarter, its annual revenue increased 15.4% in constant currency terms. However, TCS’s profits were largely flat.
Rajesh Gopinathan, Chief Executive Officer and CEO of TCS, said, “Our drive for continued growth is a validation of our collaborative and in-depth approach to the business transformation needs of our clients. Customers love our engagement model, end-to-end capability, and dynamic approach to problem solving. While mapping their innovation and growth journeys, we also help them implement new-age operating model transformations to support these journeys. “
Infosys reported revenue of $ 4.25 billion, growing 7% quarter-over-quarter (QoQ) and 21.5% year-over-year (YoY). He also raised his forecast for revenue growth for fiscal year 22 to 19.5-20 percent, from the 16.5-17.5 percent he had reported earlier.
Salil Parekh, CEO and Managing Director of Infosys, said: “Our solid performance and market share gains are a testament to the tremendous trust our customers place in us to help them in their digital transformation. This stems from four years of sustained strategic focus on areas of interest to our clients in digital and cloud, the continuous re-qualification of our employees and the deep trusting relationships our clients have with us.
Wipro also reported a good set of numbers. Revenue increased at constant currency to $ 2.64 billion for the quarter ended December 2021, representing 3% sequential growth in QoQ. For the first nine months of the current fiscal year, revenue amounted to $ 7.63 billion, an increase of 28 percent from the corresponding prior period. However, net income for the quarter was almost flat at $ 399.1 million. Wipro has also been cautious, forecasting 2-4% growth for the next quarter. Wipro also declared an interim dividend of 1 per share.
However, Thierry Delaporte, CEO of Wipro, CEO and Managing Director was optimistic and pointed out that Wipro had achieved a fifth consecutive quarter of good performance, both in terms of revenues and margins.
Report by Venkatesha Babu. Additional contributions from BL interns Haripriya Sureban, Isha Rautela
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