The Indian markets are currently trailing in a specific range. The Nifty50 is constantly seen moving between 16700 to 17300 levels for quite a long time. This is because there is no stable good or bad news that could actually push the indices towards one particular direction. There are always mixed news or mixed market sentiments to balance the gain or loss of the entire stock market. For instance the latest example can be taken of the CPI data given by the USA. on 13th October USA rolled out the CPI data which was not at all good for the entire global economy.
SGX Nifty and Indian Indices
To this effect SGX Nifty fell by more than 300 points within minutes, However Post that the announcements from IMF and Fed recovered the entire U.S. markets and even the SGX Nifty. To your surprise the close for SGX Nifty on 13th October, 2022 late night was above 17100. Such is the situation of the entire market.
In such a market the result time has come again. This is the time where it becomes clear where the markets would be headed ahead and what would be further move from the investors and traders. The reason is the result of various segments on average and the projection for the next quarter. This is the time for investors to shift their liquidity from one stock to another on the basis of the announcements made by various companies during their result declaration.
This time around the most awaited were the results of the I.T sector. The reason being the previous quarter was not good for most of the I.T companies and in their announcements for previous quarters Huge promises were made to the investors. Also the entire segment is almost bottomed out due to the recession fears in the USA and Europe. Alongside this the Russian government has warned of a World War 3 Situation. Hence all these factors will be affecting the business of these Information technology Companies.
The major Information Technology Companies of India are Tata Consultancy services, Infosys, Wipro and HCL Tech. These are the major ones that affect the entire Nifty50 based on their weightage in the index as well as the Information Technology Sector. Lets decode the result of each company individually.
Tata Consultancy Services
TCS is the biggest Indian I.T. company. During the 2nd Quarter of 2022-23, the company achieved the 10000 Crore Rs profitability. Also the profit of 10431 Crore achieved this quarter is 8.4% more than the previous year and 10% more than the quarterly results. The revenue generation stood at 55309 Crore Rs and it was 18% more on yearly basis and 4.8% more on quarterly basis. The order book of the company is also expected to stay strong during the next quarter as well.
The major segments for the company’s work were retail and CPG, Communication and Media, Manufacturing, Life Sciences, healthcare and technology Services. Some growth was also noticed in the BFSI segment. The major market growth was noticed in North America, Continental Europe and the United Kingdom. However in the emerging segment the growth was noticed most in India, Middle East and Latin America. Currently the major concern is the recession fear in the USA, the recession struck UK and economically worsened Europe. These are the major areas for TCS’s business and they are the most affected due to the pandemic and Russia Ukraine War crisis. Hence the further order book seems strong but the clients have started thinking on spending made on the Information Technology Segment.
The company did well in comparison to its previous quarter. The Net profit stood at 6021 Crore Rs and the operation profit was witnessed at 7873 Crore Rs. The revenue growth of the company was almost 23.5% with 36538 Crore Rs. The major news is the company’s addition of 4 new major clients in the 100 Million and above cluster. The major news in the company were not the results but the buyback presented the award of the company. The buyback is 9300 Crore Rs at 1850 Rs per share. Also the company has declared a dividend of 16.5 Rs per share.
The company was extremely aggressive in beating the estimates made by the analysts. HCL tech had a net profit of 3489 Crore Rs which was 7% more than previous year. The revenue also increased by 19.5% to 24868 Crore Rs. The board of directors announced a dividend of 10 Rs per share. The major move by the board was the revenue projection made for the next quarter. The previous projections were set at 12 to 14% rise which was updated to 13.5 to 14.5% or above by the company.
Wipro created an upset for the investors as it noticed a decreased net profit in this quarter. This was also the reason why the share prices of Wipro fell by 6 to 7% in one single trading session. The net profit was down by 9% and the revenue was up by 14.6%. This means that the company’s yearly growth is into a big question bracket. The reason behind the same was the downturn in the United Kingdom economy. Adding to this the Russia and Ukraine war also affected the global business (especially Europe and America markets). However the positive note is that the company’s TCV was up by 24%. Also the large deal bookings went up by 42%. Hence these would be noticed in the upcoming results for the company.