HCL Tech surpasses Wipro to rank third among Indian IT companies

For the past four years, HCL Technologies, owned by Shiv Nadar, has ranked third among Indian IT firms in terms of sales. But although Wipro had maintained its ranking as the third-largest IT business by market cap, the market never perceived it as such.

HCL Tech Beats Wipro

It is no longer accurate, as HCL Tech outpaced Wipro by a significant margin and now has a market cap of over 2.5 lakh crore as opposed to Wipro’s 2.2 lakh crore. It’s important to note that HCL Tech defeated Wipro despite neither company’s stock experiencing a significant increase this year.

HCL Tech surpasses Wipro to rank third among Indian IT companies
credits – businessinsider.in

Just that HCL Tech’s shares have dropped far more subtly than Wipro’s have. These two businesses haven’t merely had a meltdown. This year, every IT stock declined, with Wipro having the lowest performance.

Wipro was established in 1945 as a manufacturer of vegetable oils, whereas HCL Technologies was created in 1991 and is now a nearly 80-year-old corporation. It changed into an IT company in the 1970s and 1980s as a result of adapting to the shifting business landscape.

With 2.1 lakh employees compared to Wipro’s 2.5 lakh, HCL Tech has a somewhat smaller operating budget than Wipro. The Indian IT sector, which experienced an extraordinary rise in the previous two years, has been dealt a blow from high attrition rates, supply chain concerns, surging inflation, and the Russia-Ukraine war.

HCL Tech surpasses Wipro to rank third among Indian IT companies
credits – trak.in

As a result, JP Morgan cut its rating for the Indian IT industry from “overweight” to “underweight”; according to the investment bank’s analysis, revenue has peaked and margins will continue to be squeezed. Additionally, it warned that the slowdown would get worse in FY23, and the June quarter figures confirm this.

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