Infosys is the biggest IT results disappointment for Q4 2013. It's dollar revenues came below expectations, while EBIT margin was just 23.55 per cent, as against market expectations of 25 per cent. To make matters worse the company has guided for a growth in revenues of 6-10 per cent for FY 2014, as against NASSCOM projected industry growth of 12-14 per cent.
Wipro like Infosys is struggling to gain momentum as far as revenues is concerned. India's third largest software company expects revenues from its IT Services business to be in the range of $1,575 million to $1,610 million for the first quarter of 2014. This is not a very encouraging number and growth is likely to be muted going forward.
TCS, India's largest software company delivered results in line with expectations showing a 22.1 per cent jump in net profit at Rs 3,596.9 crore for January-March quarter. The company has even expressed confidence of beating Nasscom Industry growth estimate of 12-14 per cent for 2013-14.
"We have delivered a year of strong growth with all markets and industry segments growing in double digits. Pricing has been stable...We remain confident that the new fiscal will bring greater opportunities," TCS Managing Director and Chief Executive N Chandrasekaran said.
HCL Tech has been the star performer in the IT sector for the last few quarters now. For the third quarter (HCL follows July-June financial year) net profit soared a staggering 73 percent year-on-year to Rs 1,040 crore, helped by new deal wins. The profits were sharply higher then what analysts had expected at around Rs 950 crores. It's margins, client additions and forward guidance all remained robust, suggesting that it's likely to outperform going forward in the next few quarters.