The pecking order of India’s top three IT firms has changed. Infosys, already the most valued IT firm in the country, has emerged as the most profit making software service provider overtaking Tata Consultancy Services(TCS).
For the year ended March 31, 2009, TCS reported a marginal 4.5% increase in consolidated net profit at Rs 5,256 crore. In contrast Infosys net profit rocketed 28.5% to Rs 5,988 crore. Wipro which is otherwise the second largest IT firm by revenues has remained at the no: 3 spot as far as generating profits is concerned.
TCS continues to be the largest IT firm by revenues having reported net sales of Rs 27,812 crorecrore of Wipro and Rs 21,693 crore of Infosys.
This makes Infosys by far the most attractive firm in terms of net margin at 27% which is almost double that of Wipro and 50% more than that of TCS. Its not surprising then that the stock market values Infy much ahead of the other two top names of India’s software service giants.
Analysts are keenly awaiting revised results for Satyam which would confirm whether Tech Mahindra has overtaken HCL Tech as the fourth largest IT firm in the country.
As against Infosys and TCS which are pure play IT and ITES firms, Wipro also has some other businesses which were originally the family business of the Premjis. This includes FMCG and consumer lighting units which generated sales of around Rs 2,000 crore in FY09(Rs 1,500 crore in FY08). But even after excluding this Wipro is a bigger firm than Infosys in terms of sales.