Dalal Street Investment Journal – July 20, 2019

88 DALAL STREET INVESTMENT JOURNAL I JULY 22 - AUG 4, 2019 DSIJ. in^

Financial Review For FY19

IT

Company Name

Market Cap

(` in Cr.)

Net Sales (` in Cr.) Operating Profit (Excluding OI) (` in Cr.) Net Income (` in Cr.)

FY19 FY18 FY17 FY19 FY18 FY17 FY19 FY18 FY17

T

he Indian IT sector contributed nearly 7.7 per cent

to India’s GDP and the percentage of contribution

is expected to increase to 10 per cent of the nation’s

GDP by 2025. India has emerged as a conspicuous

digital capabilities hub of the world with around 75

per cent of the global digital talent available in India.

We included 62 IT firms in our study. On an average, the net

revenues in the sector climbed by 15.92 per cent in FY19. Only

a handful of companies witnessed a YoY decline in net sales in

FY19. These include Vakrangee, Allsec Technologies, 63 Moons

Technologies and Aptech as their net sales plummeted by 76.80

per cent, 19.63 per cent, 18.97 per cent and 11.54 per cent,

respectively. However, some firms demonstrated an astounding

improvement in net sales. These include Zen Technologies,

CESC Ventures and Infibeam Avenues, which reported growth

in net revenues of 136.68 per cent, 119.21 per cent and 78.07

per cent, respectively.

Presently, the margins in the IT sector are under pressure

primarily on account of cross-currency tailwinds. Wage

hikes, rising visa costs and investments are exerting pressure

on margins. On an average, the operating profits of

companies operating in this sector exhibited growth of 17.51

per cent YoY in FY19. Majesco particularly stood out as its

operating profit surged by a whopping 321.15 per cent to

Tata Consultancy Services 811134.24 146463.00 123104.00 117966.00 39506.00 32516.00 32311.00 31562.00 25880.00 26357.00
Infosys 308038.35 82675.00 70522.00 68484.00 20170.00 18893.00 18604.00 15410.00 16100.00 14383.00
Wipro 164071.25 59018.90 54487.10 55448.40 11616.90 10387.10 11320.90 9022.20 8002.00 8517.90
HCL Technologies 137879.31 60427.00 50569.00 47568.00 13926.00 11246.00 10384.00 10120.00 8709.00 8604.00
Tech Mahindra 65725.43 34742.10 30772.90 29140.84 6336.90 4709.60 4184.43 4354.30 3786.10 2853.21
Larsen & Toubro Infotech 28935.11 9445.80 7306.50 6500.90 1883.30 1187.40 1230.20 1515.50 1112.40 970.90
Oracle Financial Services Software 28252.57 4958.90 4527.47 4426.53 2144.61 1811.21 1733.90 1385.90 1237.04 1185.66
Info Edge (India) 27587.19 1150.93 988.24 887.63 312.76 258.20 177.20 902.12 545.12 146.87
Mphasis 18278.90 7730.98 6545.84 6076.36 1323.83 1062.37 968.80 1073.35 837.50 791.58
Mindtree 14604.47 7021.50 5462.80 5236.40 1064.50 740.50 704.50 754.10 570.10 418.60
Hexaware Technologies 10864.06 4647.76 3942.01 3534.90 733.82 655.16 576.36 583.30 499.26 419.16
NIIT Technologies 8180.98 3676.20 2991.40 2802.10 648.50 501.30 476.70 422.10 308.70 272.10
Cyient 5893.40 4617.50 3917.50 3606.50 623.40 535.40 477.20 476.60 418.70 327.30
Zensar Technologies 5764.37 3966.33 3107.74 3055.59 479.43 364.93 381.88 318.65 246.49 238.37
Polaris Consulting & Services 4888.42 2627.87 2094.99 2051.35 347.61 239.86 233.59 227.11 163.07 102.12
Persistent Systems 4804.16 3365.94 3033.70 2878.44 556.24 468.73 465.35 351.68 323.09 301.47
Vakrangee 3792.67 1508.23 6502.00 4000.46 -21.67 1003.86 946.01 25.23 680.46 530.80
Sonata Software 3694.77 2960.90 2453.94 2370.78 335.61 230.99 191.54 248.88 192.13 156.92
Firstsource Solutions 3499.70 3826.28 3535.25 3555.61 535.47 458.91 437.99 377.78 326.58 279.24

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