Article Title: Comparison of Q4 Results of Major Indian IT Companies in 2024
In the fourth quarter of 2024, major Indian IT companies such as TCS, Wipro, Infosys, and HCL Technologies reported their financial results. Amit Goel, Co-Founder and Chief Global Strategist at Pace 360, provided insights into the performance of these companies.
TCS reported a consolidated net profit of ₹12,434 crore, showing a 9% increase from the previous year. Revenue from operations also saw a slight year-on-year uptick, rising by 3.5% to reach ₹61,237 crore.
On the other hand, Wipro recorded a consolidated net profit of ₹2,835 crore, marking an 8% decline compared to the same period last year. Revenue decreased by 4% year-on-year to ₹22,208 crore.
Infosys reported a net profit of ₹7,975 crore in the March quarter, with total revenues amounting to ₹37,923 crore.
HCL Technologies reported a net profit of ₹3,986 crore for Q4FY24, marking a slight increase from the previous year. The company also posted a 7% rise in revenue, reaching ₹28,499 crore. Despite challenging times, HCL Tech led the industry with a strong 5.4% year-on-year growth in USD revenue, positioning itself to capitalize on AI-led propositions and global delivery models.
In comparing the Q4 results of HCL Tech, TCS, Wipro, and Infosys, DK Mudaraddi, a Research Analyst at Stoxbox, noted that TCS displayed the most resilient performance across all fronts. While Infosys and Wipro faced challenges in ensuring timely ramp-up of deals and dealing with subdued discretionary spending, TCS continued to benefit from its megadeals and growing deal pipeline.
Looking at the technical charts, Sugandha Sachdeva, Founder of SS Wealth Street, suggested that Infosys and Wipro may offer favorable price patterns from a medium to long-term perspective. Infosys, in particular, showed strong performance with a significant gain in its stock price.
Overall, the IT sector is focusing on efficiency and increasing utilization to improve margins in a challenging demand environment. While there are some positive signs in sectors like manufacturing and healthcare, a recovery is expected from the second quarter of FY25 onwards as finalized client budgets come into execution. Investors may consider Infosys as a top pick based on its recent performance and potential for further growth. If the stock price of Wipro breaks above the ₹1650 mark, it could potentially lead to further gains reaching ₹1900 and beyond in the long term. Wipro has already seen significant growth, with a 55% increase from its lows in April 2023 to recent highs of Rs. 545.90 in February 2024. The stock has tested its previous resistance, now turned support, at Rs. 445 and is expected to continue its upward trajectory. Analysts predict that Wipro has the potential to reach Rs. 615 and beyond in the long term, offering a potential return of around 34% in the medium term.
TCS is another stock to watch, having breached its previous high of Rs. 3625 and reaching new highs around ₹4254 last month. While there has been some profit booking recently, analysts believe that buying interest could drive the stock towards the ₹4750 level if it sustains above ₹4120 levels. HCL Tech also shows positive trends, with potential corrective declines. As long as the stock holds above ₹1250 on a closing basis, a buy-on-dips strategy is considered viable.
It is important to note that the views and recommendations mentioned above are those of individual analysts or broking companies and not of Mint. Investors are advised to consult with certified experts before making any investment decisions.