Total of 221 new clients were added in the four bands of $1 mn+, 10 mn+, 50 mn+ and 100 mn+ in H1-FY20. Though the new client additions have risen in H1-FY21 to 298, most of these were concentrated in the lowest band of $1 mn+. This shows that H1-FY21 was characterised by a much larger volume of relatively small sized deals due to fall in technology budgets of corporate, when compared with previous year.
Total headcount at the end of H1-FY21 stood at 20.47 lakh, a marginal rise of 2.3% when compared with 9.2% in H1- FY20. Employee costs as a proportion of total revenues rose in the past three years from 47.8% in Q1-FY19 to 50.1% in Q2-FY21. Alongside, employee costs as a proportion of total costs grew from 65.8% in FY19 to 70.2% in FY21.
While the industry lagged in the first quarter of FY21, it demonstrated a strong rebound in Q2-FY21 across all parameters, backed by growth across key verticals and geographies. Net sales dropped by 3 % in Q1-FY21, whereas it has grown by 4 % in Q2-FY21.
There is a marginal increase in gross revenue of top IT companies as compared to previous years.
Net profit of top IT companies witnessed a marginal increase in Q2-FY21. Greater stability was seen in Q2-FY21. A higher offshore mix, improved utilisation levels, lower employee attrition and benefits of lower subcontracting aided the improvements in margins.
