HCL Technologies has finally pipped Wipro to climb into third place in the list of Indian IT services firms with the largest revenues. With the top four IT services firms in the country having released their financial results for the last financial year, HCL Tech’s revenues have relatively faster in comparison to the other three, growing by 10.1 per cent in FY19 to reach $8.63 billion.
In contrast, Wipro, which has now slipped to fourth spot in terms of topline, posted a revenue of $8.12 billion at a growth rate of just 3.8 per cent. Ahead of HCL Tech are sector juggernauts Infosys and Tata Consultancy Services (TCS) which posted revenues of $11.8 billion (9 per cent growth) and $20.9 billion (11.4 per cent growth) respectively. HCL Tech’s revenue had stood at $7.84 billion the previous financial year, while Wipro’s was at $8.06 billion.
“HCLT has delivered a truly blockbuster performance with double-digit constant currency revenue growth of 11.8 per cent, which outperformed the high end of our guidance. We once again, for the third time this year, set a new bookings’ record,” said C Vijayakumar, president and CEO, HCL Tech.
As for the fourth quarter, HCL Tech posted a 15.3 per cent year-on-year increase in net profit at Rs 2,568 crore. The company also guided for a fairly better FY20 than its large peers, forecasting a constant currency revenue growth of 14-16 per cent in rupee terms and a 13.4-15.4 per cent in dollar revenue. It also forecast an EBIT (earnings before interest and tax) margin of 18.5-19.5 per cent for the current financial year.
However, despite impressive revenue figures, the markets were unenthused, with the stock falling as much as 4.5 per cent on the stock markets on Friday. The share price fell 4.07 per cent to `1,086.05 on the BSE, and declined 4.53 per cent to `1,085.05 on the NSE.