Finally! HCL Beats Wipro To Become India’s 3rd Biggest IT Company (In Terms Of Revenue)
Indian IT major, HCL Technologies has been the third largest IT company in India by revenue for the last four years.
HCL – Third Largest IT Company In India
Interestingly, the market never saw it like that as Wipro had retained its position as the third-largest IT company by market cap.
But, it’s not true any more as Shiv Nadar’s HCL Tech sprinted ahead of Wipro by a healthy margin with a market cap of over Rs 2.5 lakh crore as compared to Wipro’s Rs 2.2 lakh crore.
It’s worth mentioning here that both the companies’ stocks have seen a massive drawdown this year.
Notably, HCL Tech’s shares have fallen much lower than Wipro.
Vulnerability Affecting IT Firms
Please note that the vulnerable market has not just affected these two companies.
In fact, all the IT stocks fell this year, with Wipro being the worst performer.
Being the young blood, HCL Technologies is much younger than Wipro was founded in 1991.
Now, it has completed 30 years.
On the other hand, Wipro is almost an octogenarian, as it was founded in 1945 as a maker of vegetable oils.
Wipro seemed to have adapted to the changing business environment in the 1970s and 80s and emerged as an IT company.
When it comes to operations, HCL Tech is also slightly leaner compared to Wipro.
In terms of operations, HCL Tech has a headcount of 2.1 lakh as against Wipro’s 2.5 lakh.
It appears that high attrition rates, supply chain issues, soaring inflation and the Russia-Ukraine war has poured cold water on the Indian IT sector.
As a result, the IT sector has witnessed an unprecedented boom in the past two years.
Further affecting, JP Morgan has downgraded the Indian IT sector to “underweight”, said the investment bank in its report that the revenue has peaked and margins will continue to be under stress.
The global leader in financial services has noted that the slowdown could worsen in FY23 – and the June quarter results reflect this reality too.