After Indian IT heavyweights like Tata Consultancy Services (TCS), Infosys, Wipro, and HCL Technologies announce their Q4 2024 results, it may be difficult for investors to identify the best value in the IT sector. Stock market analysts believe that TCS Q4 results have surpassed those of Wipro, Infosys, and HCL Tech in order to dispel investor misunderstanding over the shares of TCS, Infosys, Wipro, and HCL Tech. On the other hand, they insisted that HCL Tech’s adoption of AI at a quicker pace might ultimately shift the game.
Which IT firm produced the superior Q4 2024 results?
Amit Goel, Co-Founder and Chief Global Strategist at Pace 360, commented on the Q4 results 2024 of the four Indian IT majors: “TCS reported a consolidated net profit of ₹12,434 crore for the fourth quarter, marking a 9% increase from ₹11,392 crore recorded a year earlier.” There was a little increase in revenue from operations year over year (YoY), with a 3.5% rise to ₹61,237 crore.
For the quarter that concluded on March 31, 2024, Wipro reported a consolidated net profit of ₹2,835 crore, an 8% decrease from the same period the previous year when it was ₹3,074 crore,” the Pace 360 expert said in response to Wipro’s Q4 2024 financial statements. Revenue was ₹22,208 crore at this time last year, a 4% YoY decrease from ₹23,190 crore.
With total revenues of ₹37,923 crore, Amit Goel asserts that Infosys declared a net profit of ₹7,975 crore for the March quarter.
Inquired about the HCL Tech Q4 FY24 performance, According to Amit Goel, HCL Technologies recorded a net profit of ₹3,986 crore for the fourth quarter of FY24, a marginal rise over the ₹3,983 crore recorded during the same time the previous year. In Q4FY24, it reported revenue of ₹28,499 crore, up 7% from ₹26,606 crore during the same quarter the previous year. It topped the industry in FY24 with a robust 5.4% YoY rise in USD sales, even in tough circumstances.
The use of AI will only lead to a surge in enterprise IT investment globally in the future. They are in a good position to profit from global distribution methods, AI-led offerings, and the perfect combination of technology services and goods.”
Results for Q4: TCS against HCL Tech versus Infosys versus Wipro
DK Mudaraddi, Research Analyst at Stoxbox, compared the Q4 results of HCL Tech, TCS, Wipro, and Infosys and stated that “TCS has shown the most resilient performance across all fronts” in the face of a difficult business climate. The lack of timely ramp-up of transactions and the firms’ inability to make decisions or reduce discretionary expenditure were the main causes of Infosys and Wipro’s poor financial performance.
Relying on its megadeals for robust billing and building its pipeline of new deals to multi-year highs, TCS has shown to be an efficient and innovative provider of services to clients. Still, the companies with the highest attrition rates are Wipro, Infosys, and TCS. Despite the drop in LTM attrition, the year-end headcounts for Infosys, Wipro, and TCS indicate a significant loss for the first time in more than a decade. One exception was HCL Tech, which gained staff throughout the fiscal year.
After the pandemic-induced digital boom prompted corporations and startups to hire aggressively, the job market cooled off, as seen by this decline. This coincides with an era in which IT firms seek to increase profits by increasing the rate at which current staff are utilized while decreasing turnover.
A downturn in their high-margin software products industry hurt HCL Tech’s profitability more than others. Looking at these IT behemoths’ statistics, it is evident that they are focused on improving utilization and efficiency in order to increase margins in a demanding demand market where discretionary expenditure has been declining.
There are some bright spots in this environment, such as the manufacturing and healthcare industries, but the three biggest sectors—BFSI, retail, and energy—remain sluggish. A rebound is only likely to occur in Q2FY25 when completed client budgets start to be implemented, the StoxBox specialist continued.
Which IT stock should I purchase on Monday?
“The price patterns for Infosys and Wipro appear more favorable from a medium to long-term perspective among the four IT majors—TCS, Infosys, HCL Tech, and Wipro,” stated Sugandha Sachdeva, Founder of SS Wealth Street, in reference to the technical chart representing TCS, Infosys, Wipro, and HCL Tech shares. Based on its impressive performance, Infosys is our number one choice.
With a notable 46% increase, Infosys surged to ₹1733 in February 24 after establishing a base at ₹1185 in April of previous year. Since the stock has just reversed course and formed a short-term base around roughly $1350, it is likely that it will soon rise higher, maybe as high as $1600. Long-term gains towards 1900 and higher might be possible if there is a break above ₹1650.”
Our second choice is Wipro, which has had significant gains of almost 55% from its lows in April 23 to its most recent highs of Rs. 545.90 on February 24. The stock is ready to continue rising after re-testing its prior barrier that converted into support around Rs. 445. The SS WealthStreet specialist continued, “Wipro has the potential to reach Rs. 615 and beyond in the long term, offering a potential return of roughly 34% in the medium term.”
Sugandha Sachdeva commented on the technical chart of the TCS share price, saying, “In terms of preference, TCS is ranked third, and HCL Tech is ranked fourth.” Last month, TCS scaled new highs at ₹4254 and broke beyond its previous high of Rs. 3625. If the stock is able to hold above $4120, the recent profit booking may draw in buying activity once more and push it beyond the $4750 mark.”
Sugandha continued, saying that while there could be occasional corrective dips, HCL Tech’s path seems promising. Purchasing on the declines appears to be a feasible strategy as long as the stock closes over ₹1250.
Read More: Tech Security Tips: Determine if the link in the message is spam using these straightforward methods
