The second quarter of FY2025 has been mixed for IT companies. The top IT companies have announced their q2 results, and the numbers indicate mixed or moderate performance. Given the geopolitical scenario, though the performance is justified, investors seem a bit disheartened by the IT companies’ quarterly results. This shows in today’s market movement. Sensex and Nifty both tanked significantly today. As the top IT companies’ results are out, let’s see how five of them performed during the second quarter of FY25.
- TCS: The revenue went up by 6.4% on a YoY basis in this quarter ended on 30 September 2024. The revenue for this quarter was ₹ 64259 crore up from the corresponding quarter last year when it was at ₹ 59692 crore. Similarly, the PBT increased to ₹ 16032 crore from ₹ 15330 crore. The PAT also increased marginally to ₹ 11955 crore from Q2FY24’s ₹ 11380 crore. Earnings per share marginally rose to 32.92 from 31 of the corresponding quarter last year. The company announced a dividend of ₹ 10 per share which will be paid on 5 November 2024.
- Infosys: This IT giant announced the second quarter result yesterday and reported a moderate rise in revenues that is from ₹ 38994 crore in Q2FY24 to ₹ 40986 crore in Q2FY25. The net profit for the quarter went up to ₹ 6516 crore from ₹ 6215 crore in the corresponding quarter last year. The EPS also rose marginally from 15.01 to 15.71 on a YoY basis. The company announced an interim dividend of ₹ 21 per share yesterday.
- HCL Technologies: Revenue of HCL Tech increased 8.2% YoY basis while 2.9% in QoQ basis to ₹ 28862 crore. The company got new deals in its book worth $2218 million this quarter. The net profit rose to ₹ 4235 crore in the July-September quarter this fiscal, up from ₹ 3832 crore in the corresponding quarter last year. The earnings per share for this company was at ₹ 57.05 in Q2FY25, which rose to 62.10 in Q2FY25. HCL Tech announced ₹ 12 dividends for each share, which is the company’s 87th quarterly dividend to be paid by the company.
- LTIMindtree: Revenue for Q2FY25 was ₹ 9433 crore while a year back in Q2FY24 the revenue stood at ₹ 8905 crore. The net profit increased from ₹ 1162 crore to ₹ 1252 crore for the same period taking the EPS up as well to ₹ 42.25 from the ₹ 30.27 of Q2FY24. This IT company also announced a dividend of ₹ 20 per share.
- Wipro: Coming to Wipro, the revenue of the IT giant dropped 1% on a YoY basis but increased 1,5% on a QoQ basis. The revenue for the quarter was ₹ 22300 crore and it was ₹ 22515 crore in the corresponding quarter last year. For the quarter ending on 30 September 2024, the profit was ₹ 3226 crore, significantly surging from the Q2FY24’s ₹ 2667 crore of profit. Even though the revenue dropped marginally, the profit jumped significantly. The EPS went up from ₹ 5.06 in Q2FY24 to ₹ 6.14 this July-September quarter.
Wrapping up
Indian IT companies showcased a mixed performance in the July-September quarter. While most of the top companies in the IT sector witnessed marginal growth in their q2 revenues and profits, few also witnessed negative growth. However, the muted performance can be primarily attributed to the geopolitical scenario.
Source: NSE