After the Q4 2024 results of major Indian IT companies like Tata Consultancy Services (TCS), Infosys, Wipro, and HCL Technologies were declared, investors might find it challenging to discern the most promising investment opportunities in the IT sector. However, experts have analyzed these results to provide clarity and guidance for potential investors.
TCS emerged as a standout performer among the IT giants, reporting a consolidated net profit of ₹12,434 crore for the fourth quarter, marking a 9% increase from the previous year. Its revenue from operations also experienced a modest year-on-year uptick of 3.5% to reach ₹61,237 crore.
Conversely, Wipro recorded a consolidated net profit of ₹2,835 crore for Q4 2024, indicating an 8% decline compared to the same period last year. Revenue also decreased by 4% year-on-year to ₹22,208 crore.
Infosys reported a net profit of ₹7,975 crore in the March quarter, with total revenues reaching ₹37,923 crore.
HCL Technologies saw a slight increase in net profit to ₹3,986 crore for Q4FY24 compared to the previous year. It posted a 7% rise in revenue, reaching ₹28,499 crore. Notably, despite challenging circumstances, HCL Technologies led the industry with a robust 5.4% year-on-year growth in USD revenue.
Among these companies, TCS exhibited the most resilient performance, maintaining healthy billing and a growing new deal pipeline. On the other hand, Infosys and Wipro faced challenges related to the timely ramp-up of deals and subdued discretionary spending.
Despite a decline in attrition rates across the board, HCL Tech experienced margin pressure, particularly in its high-margin software products segment.
From a technical analysis perspective, Infosys and Wipro appear more favorable for medium to long-term investment. Infosys has shown strong performance, with a potential upward trajectory towards ₹1600 in the near term and further gains in the long term. Wipro, having also seen significant gains, is poised to resume its upward trend, potentially reaching ₹615 and beyond.
TCS, although placed as the third pick, has shown positive momentum and could rally towards ₹4750 if it sustains above ₹4120 levels. HCL Tech’s trend appears positive as well, with a viable buy-on-dips strategy as long as it holds above ₹1250 on a closing basis.
