Large cap Indian Information Technology companies report dismal Q4 earnings
It has been a dismal fourth quarter for the Indian Information Technology companies. All of them struggled as clients cut back on discretionary spending.
It has been a dismal fourth quarter for the Indian Information Technology companies. All of them struggled as clients cut back on discretionary spending.
Three out of the five large cap IT companies have reported a decline in their topline for the quarter ended March 2023.
Wipro clocked in a revenue decline of 0.6 percent on a quarter on quarter basis but the bigger miss was in their June quarter guidance. They expect Q1FY24 growth to contract by 1 to 3 percent. However, the company has announced a tender buyback of Rs 12,000 crore at a price of Rs 445 per share.
Tech Mahindra revenue growth came at 0.3 percent but the margins were a big miss. They reported EBITD margins of 9.6 percent which is the lowest in the last 23 quarters, but this is on account of impairment charge on one of the carrying values of their older platforms. If you strip that out, margins are at 11.2 percent but still down 80 basis points on a quarter-on-quarter basis. Deal wins too have moderated for the company and are at $592 million.
Also Read: WTO ruling on India's IT Agreement — key implications of this adverse verdict in a taxman's view
(Edited by : Pradeep John)
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