
The recently released results for Q2FY24 were a mixed bag for the IT sector. As many as 34 companies out of the 56 that are part of the BSE IT index have posted their Q2 numbers. Data available from ACE Equity shows that 33 companies have posted net profit in the September quarter, only Ramco Systems posted a loss of Rs 146 crore in this quarter so far as 22 other companies are yet to present their Q2 earnings.
Top line: Revenues surged for 26 companies in the IT sector while 8 companies saw a decline. Among the large-caps, the gross sales for Infosys surged 3 per cent quarter-on-quarter (QoQ), followed by LTIMindtree (up 2.3 per cent), HCL Technologies (up 1.4 per cent), and TCS (up 0.5 per cent). On the other hand, Tech Mahindra (-2.2 per cent) and Wipro (-1.4 per cent) witnessed a decline in revenues.
In mid-caps, KPIT Technologies (9.3 per cent), Cyient (5.5 per cent), Persistent Systems (3.9 per cent), L&T Technology Services, and Tata Elxsi (3.7 per cent each) also posted a jump in gross sales.
Profitability: In the IT sector as many as 22 companies declared a rise in net profits while 12 companies posted a decline. Among large-caps, HCL Technologies was the biggest gainer as net profit jumped 9 per cent in the September quarter, followed by Infosys (up 5 per cent), TCS (up 2 per cent), and LTIMindtree (up 1 per cent). On the other hand, Tech Mahindra (-26 per cent) and Wipro (-7 per cent) witnessed a decline in net profits.
In the mid-cap space, Persistent Systems posted the highest QoQ increase in profit (15 per cent) followed by Cyient (9 per cent), Coforge (7 per cent), Tata Elxsi (6 per cent) and KPIT Technologies (5 per cent).
Most Profitable IT Company: In absolute terms, Tata Consultancy Services posted the highest net profit of Rs 11,380 crore in Q2FY24, followed by Infosys Rs 6215 crore and HCL Technologies Rs 3833 crore net profit.
Also Read: L&T Q2 results: Net profit rises 45% to Rs 3,223 cr