Indian IT firms record profits in the digital transformation wave
While the market, economy and other companies collapsed due to lockdown in COVID-19, Tata Consultancy Services, Infosys, HCL Technologies, Wipro, i.e. top Indian IT companies witnessed really high profits amidst the global pandemic.
The combined net profit of these 4 companies crossed $2.7 billion (200 billion rupees) for the first time ever in history. The main customers of the companies are big US and Europe based MNCs.
"The technology sector is in the midst of a massive digitization wave, with more global enterprises embracing digital transformation to address the disruption of these unprecedented times," Chairman and Chief Strategy Officer of HCL, Shiv Nadar said. HCL also recorded a net profit increase by 34.8% for the quarter. "Technology has been a key enabler during the pandemic, and as we stand at the cusp of the next phase of technological innovation, it is vital that we draw inspiration from each other's strengths and offer back our own to create a positive impact," he added.
Tata Consulting Services’ profit also exceeded by 7.2%. It’s Chief Executive and Managing Director Rajesh Gopinathan said, “We are entering the new year on an optimistic note, [with] our market position stronger than ever before, and our confidence reinforced by the continued strength in our order book and deal pipeline.”
The operating margins of all 4 IT companies were in double digits, ranging from 21.7% to 26.6%. In a reevaluation, experts say that they see an growing demand from Europe, although the US will continue to be the biggest client source for Indian IT companies.