Tag IT Services

Wipro Stock Analysis
Wipro Q4 Results: Profit Soars 26% to ₹3,570 Crore, Revenue Growth of 1%

Business and Industry Overview: 

Wipro Ltd. is a global information technology, consulting, and business process services (BPS) company. It is the 4th largest Indian player in the global IT services industry behind TCS, Infosys, and HCL Technologies. It is based in Bengaluru. It provides IT services, consulting, and business process solutions. The company operates in 167 countries and offers services in cloud computing, cybersecurity, digital transformation, artificial intelligence (AI), robotics, and data analytics. Wipro started in 1945 as Western India Vegetable Products Limited, a cooking oil company. In the 1980s, it expanded into technology and software services. By the 1990s, it had become one of India’s top IT service providers. During the dot-com boom, Wipro was India’s largest company by market value. In 2004, its annual revenue exceeded $1 billion. 

Over the years, Wipro expanded through many acquisitions. It bought Appirio in 2016, Capco in 2021, and Rizing in 2022. These helped Wipro grow in cloud services, consulting, and enterprise software. Wipro serves industries like finance, healthcare, manufacturing, retail, and telecom. It offers software development, business process management, consulting, engineering, and cloud services. The company focuses on innovation and digital transformation. Wipro is expanding globally while staying connected to its Indian roots.  

Latest Stock News: 

Wipro shared its financial results for the last three months of the financial year 2025. This is called the fourth quarter or Q4. The results were announced on April 16, 2025, after the stock market closed. In this quarter, Wipro earned total revenue of ₹22,504.2 crore. This means the money Wipro received from its services. This amount is only 1.3% higher than the revenue earned in the same quarter last year. So, the revenue grew a little, but not by much. It was also a bit lower than what experts had expected. But Wipro’s profit was strong. Profit is the money left after all costs and expenses. Wipro’s net profit in Q4 was ₹3,569.6 crore. This is a big jump of about 26% compared to the same quarter last year. It was more than what analysts and investors thought it would be. Wipro also got many new business deals in this quarter. The total value of these deals was $4 billion. One of the biggest deals was with a UK-based company named Phoenix Group. This deal is worth $650 million and will go on for 10 years. These deals will help Wipro in the future. Even though profit was high, Wipro gave a weak forecast for the next quarter, which is Q1 of the financial year 2026. The company said that its revenue might fall by 1.5% to 3.5% compared to this quarter. This means the company expects to earn less money in the next three months. Wipro said this is because many clients are not spending much right now. This is due to global economic issues. So, clients are being careful with money. Wipro also said that it is focusing more on AI (Artificial Intelligence). AI can help improve services and make work faster and smarter. The company is using AI in different areas to grow its business and serve clients better. After the results were shared, Wipro’s stock price went up. On April 16, Wipro shares closed at ₹247.50 on the BSE (Bombay Stock Exchange). This was a rise of 1.39% from the previous day’s price. In short, Wipro had strong profits and new deals, but future income may drop a little. The company is working on new technology like AI to do better in the future. 

Segmental information:

Wipro changed how it works from April 1, 2025. The company is now divided into four main parts. These parts are called business segments. Each segment does different work. This helps Wipro use new technology like cloud and AI. It also helps the company serve customers better. 

1. Technology Services: This part helps companies use new technology. Wipro helps with cloud services, managing data, and AI. Wipro also owns a company called Designit. Designit helps with designing products. This part helps companies work faster and smarter with technology. 

2. Consulting Services: This part gives advice to companies. Wipro helps companies plan and improve their business. Wipro owns a company called Capco. Capco helps with business and finance advice. This part helps companies make better decisions and grow. 

3. Business Process Services (BPS): This part handles daily work for companies. It helps with tasks like customer support, finance, and supply chain work. This part helps companies save time and money. It makes everyday work easier for companies. 

4. Engineering Services: This part helps make and improve products. Wipro helps companies create new products or make old ones better. It also uses new technology to improve products. This part helps companies bring products to the market faster. 

These four parts help Wipro do its work better. Each part focuses on one type of work. This change will help Wipro grow and stay strong in the future. 

Subsidiary Information: 

1. Wipro Enterprises: Wipro Enterprises makes consumer products and healthcare items. It makes things like lighting, furniture, and personal care products. 

2. Wipro GE Healthcare: Wipro GE Healthcare is a company Wipro owns with GE Healthcare. It makes medical equipment, like machines for medical scans. This helps Wipro in healthcare. 

3. Wipro Technologies: Wipro Technologies is one of the biggest subsidiaries. It helps businesses with technology, like cloud services, data management, and IT solutions. 

4. Designit: Designit is a company that Wipro bought. It helps companies design better products and services. It helps improve the customer experience. 

5. Capco: Capco is a company Wipro bought in 2021. It helps companies with advice on business, finance, and technology. 

Q4 Highlights: 

  • Wipro earned ₹22,504 crore in the last three months. This is a small increase of 1.3% compared to last year. 
     
  • Wipro’s profit grew by 26% to ₹3,570 crore. This was better than expected. 
  • Wipro won new contracts worth $4 billion. One big deal was with the Phoenix Group in the UK. This deal was worth $650 million.  
  • Wipro expects its revenue to go down by 1.5% to 3.5% in the next quarter. This is because many clients are being careful with their spending because of global problems.  
  • After the results came out, Wipro’s shares went up by 1.39%. The stock closed at ₹247.50 on the BSE.  
  • Wipro plans to use more Artificial Intelligence (AI) to improve its services and stay strong in the market. 

Financial Summary: 

Amount in ₹ Crore Q4 FY24 Q4 FY25 FY23 FY24 
Revenue 22,208.00 22,504.00 90,488 89,760 
Expenses 17,828.00 17,880 73,649 73,008 
EBITDA 4,381 4,624 16,839.00 16,752.00 
OPM 20% 21% 19% 19% 
Other Income 11 1,217 2,275 2,631 
Net Profit 2,858.00 3,588.00 11,366 11,112 
NPM 12.87 15.94 66.46 56.48 
EPS 2.71 3.41 10.34 10.57 
Infosys Ltd Q3 Earnings
Infosys Ltd: Driving Digital Transformation- Q3 Results and Investment Insights

Infosys Ltd: Overview 

Infosys Ltd is a global leader in consulting, technology, outsourcing, and next-generation digital services, empowering clients to achieve their digital transformation goals. As India’s second-largest IT Company after TCS, Infosys has a robust presence in both traditional and digital services. This segment focuses on innovative solutions that enable clients to modernize their businesses. It includes offerings that enhance customer experience, leverage AI-based analytics, utilize big data, engineer IoT solutions, modernize legacy systems, migrate to cloud platforms, and implement advanced cyber security systems. Infosys serves a prestigious and diversified client base, including global organizations such as ICICI Bank, Daimler Mercedes-Benz, HSBC Bank, Goldman Sachs, Johnson & Johnson, Accenture, the US Army, US Navy, Lockheed Martin, IBM Corporation, and Deutsche Bank. The company’s dual focus on innovation in digital services and expertise in core IT solutions positions it as a vital partner for businesses navigating the challenges of digital transformation. The global IT services industry is experiencing rapid transformation driven by advancements in technologies like artificial intelligence, cloud computing, big data, IoT, and cyber security. As businesses across industries adopt digital-first strategies, demand for IT and a digital service continues to rise. India remains a key player in the IT sector, with a competitive edge in cost efficiency, skilled workforce, and strong government support for technology-driven initiatives. Companies like Infosys benefit from these advantages, capturing market share in global markets, including North America, Europe, and APAC. The IT sector’s growth trajectory is fuelled by factors such as increased demand for digital transformation, the rise of cloud adoption, and a growing focus on AI and machine learning. Despite challenges like global economic uncertainty and evolving regulations, the industry’s long-term prospects remain promising. Infosys, with its diversified service offerings and strategic investments in innovation, is well-positioned to capitalize on this growth. 

Latest Stock News 

The Financial Services sector in the U.S. continues to exhibit strong growth, while European Financial Services have shown signs of recovery during the third quarter. In the U.S., the Retail and Consumer Products sector has improved due to reduced discretionary pressures. However, the automotive sector in Europe remains sluggish, with other industries showing steady demand driven by cost optimization rather than discretionary spending. Over 100 new Generative AI agents are under development for integration into client operations, with current clients already benefiting from these tools. The company has revised its revenue growth guidance to 4.5%–5% in constant currency terms for the fiscal year, maintaining an operating margin guidance of 20%–22%. 

Infosys plans to onboard 15,000–20,000 freshers in FY26 and 5,591 employees added in the current quarter. Wage hikes are scheduled in two phases, starting January 1 and April 1, with an anticipated impact of 6%–8% on India margins. Challenges persist, with furloughs impacting revenue contributions from top clients and a decline in their overall share. Additionally, currency fluctuations and third-party costs remain influential factors. Discretionary spending in Hi-Tech and Telecom sectors continues to lag, with no significant signs of recovery yet. On the competitive landscape, pricing remains stable, with a 3.6% year-on-year increase attributed to value-based selling. Utilization rates are at 86%, slightly exceeding the preferred range of 83%–85%, reflecting effective resource management during growth. The company maintains a strategic focus on cost optimization and vendor consolidation as core growth drivers. 

Business Segments: 

  • Financial Services: This is the largest segment, serving banking, financial services, and insurance (BFSI) clients. Infosys provides solutions for digital banking, payments, wealth management, risk, and compliance, helping financial institutions enhances customer experience and operational efficiency. 
  • Retail and Consumer Packaged Goods (CPG): This segment caters to retailers and CPG companies by offering solutions in areas like e-commerce, supply chain optimization, customer engagement, and omni channel strategies. Infosys helps clients navigate the rapidly evolving retail landscape and consumer behaviour. 
  • Communication, Media, and Technology (CMT): Infosys supports clients in telecommunications, media, entertainment, and technology by offering innovative solutions in digital experience, 5G, AI, and IoT. This segment focuses on enhancing connectivity, content delivery, and digital transformation. 
  • Energy, Utilities, Resources, and Services: This segment provides solutions for companies in the energy, utilities, and resources sectors, focusing on digital transformation, sustainability, and operational optimization. It includes services in areas like smart grids, renewable energy, and asset management. 
  • Manufacturing: Infosys supports manufacturing clients with solutions for digital manufacturing, supply chain visibility, and product lifecycle management. It helps companies improve efficiency and adopt smart factory technologies. 
  • Life Sciences and Healthcare: Infosys offers solutions to pharmaceutical, biotechnology, and healthcare companies, including digital health platforms, clinical trial management, and supply chain optimization, aiding in patient-centric care and innovation. 
  • Hi-Tech: This segment serves technology companies, offering services in engineering, R&D, and product development. Infosys helps clients accelerate innovation and bring high-tech products to market faster. 

Subsidiary Information: 

  • Infosys BPM Ltd: Infosys BPM (Business Process Management) Ltd. is the business process outsourcing arm of Infosys, focusing on delivering end-to-end transformative BPM services. It caters to industries such as financial services, retail, telecommunications, and healthcare, offering services in areas like customer experience management, finance and accounting, human resources, legal process management, and analytics. Infosys BPM emphasizes digital transformation, automation, and data-driven decision-making to enhance operational efficiency and business agility for clients globally. 
  • Infosys Automotive and Mobility GmbH & Co. KG: Infosys Automotive and Mobility GmbH & Co. KG is a subsidiary dedicated to the automotive and mobility sectors. Based in Germany, it focuses on providing digital engineering, software solutions, and IT consulting services to leading automotive manufacturers and suppliers. Its offerings include connected vehicle solutions, autonomous driving technology, electric vehicle innovation, and smart manufacturing. The subsidiary plays a pivotal role in addressing the evolving needs of the automotive industry, such as sustainability, electrification, and mobility-as-a-service. 
  • Infosys McCamish Systems LLC: Headquartered in Atlanta, Georgia, Infosys McCamish Systems LLC specializes in providing business process outsourcing services and software solutions for the insurance and financial services industry. Its expertise includes life insurance, annuities, retirement services, and healthcare. The company delivers end-to-end insurance policy administration, claims processing, and compliance solutions. With its scalable platforms and innovative technologies, Infosys McCamish supports insurers in improving operational efficiency and customer satisfaction. 
  • EdgeVerve Systems Limited: EdgeVerve Systems Limited, a wholly-owned subsidiary of Infosys, develops and deploys cutting-edge software products and platforms. Its flagship products include Finacle (a leading banking platform) and AssistEdge (an automation and AI-driven customer service platform). EdgeVerve focuses on enabling digital transformation for enterprises across industries, offering solutions in automation, AI, and blockchain to enhance productivity, streamline processes, and drive innovation. 
  • WongDoody Inc.: WongDoody, Inc., a creative and customer experience company acquired by Infosys in 2018, specializes in customer experience design and advertising. With headquarters in the United States, it provides branding, marketing strategy, and digital design services. WongDoody works with global clients to create compelling brand narratives and innovative customer experiences, aligning business goals with creative execution. It is a key player in Infosys’ effort to enhance its digital and customer-centric service offerings. 

Q3 FY24 & Business Highlights 

  • Revenue of ₹41764 crore in Q3 FY25 up by 7.6% YoY from ₹38821 crore in Q3 FY24.  
  • EBITDA of ₹10115 crore in this quarter at a margin of 24% compared to 24% in Q3 FY24. 
  • Profit of ₹6822 crore in this quarter compared to a ₹6113 crore profit in Q3 FY24. 

Financial Summary 

INR Cr. Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 38821 41764 146767 153670 
Expenses 29684 31649 111637 117245 
EBITDA 9137 10115 35130 36425 
OPM 24% 24% 24% 24% 
Other Income 789 859 2701 4711 
Net Profit 6113 6822 24108 26248 
NPM 15.7% 16.3% 16.4% 17.1% 
EPS 14.7 16.4 58.1 63.2 
Tech Mahindra: Global IT Leader Strengthening Operations
Tech Mahindra: Global IT Leader Strengthening Operations Through Strategic Mergers

Tech Mahindra Ltd: Overview 

Tech Mahindra is a leading global technology company, part of the Mahindra Group, offering IT and business process outsourcing services. Founded in 1986, the company provides innovative solutions in digital transformation, consulting, and business re-engineering across industries such as telecommunications, healthcare, BFSI, and manufacturing. It has an employee base of more than 145,000 across 90 countries, and provides services to 1200+ clients. The global IT services industry, valued at over $1 trillion, is essential for helping businesses across sectors innovate, streamline operations, and improve customer experiences through advanced technologies like artificial intelligence (AI), cloud computing, app development & maintenance services the Internet of Things (IoT), and 5G. While industry growth was around 8.4%, it slowed to 5.4% in CY23 due to geopolitical pressures and various market shifts. The first quarter was challenging for the IT sector as many major clients reassessed their IT spending, focusing on larger, more efficient providers an advantage for Tech Mahindra. Despite the broader industry weakness, Tech Mahindra had a strong quarter, partnering with 7 of the top 10 companies, which helped maintain its market position and secure ongoing client orders. 

Latest Stock News (20 Jan, 2025)

The Board of IT services and consultation company Tech Mahindra has approved the merger of its arm Healthnxt Inc. with parent company Tech Mahindra Americas. TMA, a wholly-owned material subsidiary of the company, provides computer consulting, programming support services and IT Management and Consulting Services to customers in various industries including healthcare. Healthnxt is wholly-owned subsidiary of TMA and a step down wholly-owned subsidiary of the company. It is a virtual healthcare company that offers fully integrated inpatient experience at home and outsourced services. The business of both entities Healthnxt and TMA are complimentary hence consolidation of the entities will result in synergy of business operations, optimize operational cost and reduce the compliance risk. The investment of TMA in Healthnxt will get cancelled on the merger becoming effective. Tech Mahindra, in a regulatory filing today, informed that NCLT, Mumbai, has sanctioned the Scheme of Merger by Absorption of Perigord Premedia (India) Private Limited, Perigord Data Solutions (India) Private Limited, Tech Mahindra Cerium Private Limited and Thirdware Solution Limited, wholly-owned subsidiaries of the Company with the Company. The merger will result in reduction in the overheads including administrative, managerial and other expenditure, and optimal utilization of resources by elimination, if unnecessary duplication of activities and related costs. It will provide better opportunities to scale up their performance with a larger corporate entity having large revenue base, resources, assets base etc. 

Business Segments 

  • Tele communications: It provides end-to-end services for telecom companies, including 5G network implementation, software-defined networks (SDNs), and Network Function Virtualization (NFV). Tech Mahindra’s expertise in telecom is a major differentiator, allowing it to support clients in the telecommunications industry as they undergo digital transformation.  
  • Manufacturing: Tech Mahindra works with global manufacturing and automotive companies, offering IT and engineering services that span product lifecycle management (PLM), industrial IoT, smart manufacturing, etc.  
  • Cloud Infrastructure: Tech Mahindra helps companies migrate to cloud-based platforms, implement AI-driven analytics for decision-making, and improve digital security measures. This segment supports businesses in adopting cutting-edge technologies for greater agility and innovation.  
  • Healthcare & Life Science: Tech Mahindra provides IT solutions specific to the healthcare and life sciences sectors, such as healthcare management systems, digital healthcare platforms, and compliance management. 
  • BFSI: It offers innovative solutions for retail banking, lending and leasing, cards and payments, asset and wealth management, investment banks, and stock exchanges. We offer technology capabilities around consulting, enterprise architecture, business, network, security and BPS solutions, and modernisation initiatives like cloud, engineering, connectivity, customer experience and ESG. 

Subsidiary Information 

  • Tech Mahindra USA Inc.: As a wholly-owned subsidiary of Tech Mahindra Limited, Tech Mahindra USA Inc. serves as a pivotal entity in the North American market. It offers a comprehensive range of IT services, including consulting, digital transformation, and business re-engineering solutions, catering to diverse industries such as telecommunications, healthcare, and manufacturing. Leveraging its deep domain expertise and technological capabilities, the company enables clients to navigate complex digital landscapes and achieve operational excellence. 
  • Zen3 Infosolutions Inc.: Specializing in artificial intelligence, data analytics, and software development, Zen3 delivers innovative solutions that drive digital transformation for businesses. In September 2024, Tech Mahindra announced the merger of Zen3 Infosolutions with Tech Mahindra (Americas) Inc., aiming to streamline operations and enhance service delivery in the region. 
  • Eventus Solutions Group LLC: Eventus Solutions Group is a US-based company specializing in customer experience (CX) consulting and contact center solutions. The acquisition has strengthened Tech Mahindra’s capabilities in delivering end-to-end customer engagement solutions. In November 2024, Tech Mahindra’s board approved the merger of Eventus Solutions Group with its parent company, Tech Mahindra (Americas) Inc., to further integrate services and optimize operational efficiencies. 
  • Tech Mahindra GmbH: It focuses on providing IT services and solutions tailored to the European market. The company offers a broad spectrum of services, including digital transformation, consulting, and engineering services, catering to industries such as automotive, manufacturing, and telecommunications. By leveraging local expertise and global resources, Tech Mahindra GmbH helps clients drive innovation and achieve business objectives in a competitive landscape. 

Q3 FY25 & Business Highlights 

  • Revenue of ₹13286 crore in Q3 FY25 up by 1.4% YoY from ₹13101 crore in Q3 FY24.  
  • EBITDA of ₹1809 crore in this quarter at a margin of 14% compared to 9% in Q3 FY24. 
  • Profit of ₹989 crore in this quarter compared to a ₹524 crore profit in Q3 FY24. 
  • The active clients of tech Mahindra has decreased by 53 to1175 in Q3 FY25 and utilization rates of employees is 85.6%. 
  • Healthcare & Lifesciences segment has seen the highest growth as QoQ in revenue of 4.5% and following it BFSI seen 2.7% growth. But YoY growth is higher in BSFI compared to other segments. 
  • Total deal wins in this quarter is $745 Mn, which is great as it shows a high demand from its clients. 
  • Selected by a large German Telco to support their technology domains across Network, IT, and Service Operations, driving autonomous operations using GenAI. 
  • Awarded a global managed Network as a Service (NaaS) deal by a Europe based one of the largest chemical producers globally. 
  • Won a managed services deal from a leading global auto-maker for supporting their IT landscape covering every aspect of their business operations by leveraging our ADMS and Cloud & Infra Services capabilities. 
  • Tech Mahindra signed a multi-year Strategic Collaboration Agreement (SCA) with Amazon Web Services (AWS) to develop an Autonomous Networks Operations Platform (ANOP) designed for Communication Service Providers (CSPs) and enterprise customers. 

Financial Summary 

INR Cr. Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 13101 13286 53290 51996 
Expenses 11955 11477 45527 47489 
EBITDA 1146 1809 7763 4506 
OPM 9% 14% 15% 9% 
Net Profit 524 989 4857 2397 
NPM 3.9% 7.4% 9.1% 4.6% 
EPS 5.23 10.05 49.6 24.14 
Sonata Software Ltd
Sonata Software Ltd: Pioneering Innovation and Delivering Stellar Returns in IT Services

Company Overview 

Sonata Software Ltd. is a leading global IT services and technology solutions company based in India. It provides a wide array of IT services, software solutions, and digital transformation offerings to enterprises worldwide. With a focus on innovation and customer-centricity, the company caters to industries such as retail, manufacturing, travel, ISV (Independent Software Vendors), and BFSI (Banking, Financial Services, and Insurance). It has business segments in IT services, platformation, Product Engineering, and software Distributors. It has a global presence with operations in over 35 countries, serving more than 500 clients. 

Return Summary 

YTD 1 Month 6 Month 1 Year 2 Year 3 Year 5 Year 
(15.73%) 4.75% 15.07% (0.15%) 113.87% 111.02% 444.02% 

3 Year Return: Sonata Software v/s NIFTY 

Result Highlights 

  • Revenue for YoY and QoQ is at increasing phase at Q2 FY25 revenue of ₹2527 crore with moderate EBITDA margin of 7% at ₹176 crore. 
  • The target revenue company want to achieve is ₹12,000 crore by the end of 2027, and strengthening its client partnerships with Microsoft, AWS and other significant players. 
  • In this half year company has closed 6 large deals, and in active pipeline 49% are large orders. 
  • The cash reserves on balance sheet has reduced from ₹700 crore to ₹500 crore, because of dividend payouts and acquisitions. 
  • Major wins in Q2 are Collaboration with a US technology giant for AI, cloud, and data services. A multi-year data modernization program with an Australian wholesaler. Strategic partnership with a leader in food safety systems for consumer-facing automation platforms 

Shareholding Pattern 

Return Comparison with Peers 

COMPANY 1 Year 2 year 3 Year 5 Year 
Sonata Software (0.15%) 113.87% 111.02% 444.02% 
Tata Elxsi (19.7%) (1.86%) 14.26% 734.5% 
KPIT Technology (8.12%) 91.47% 196.3% 1341.6% 
Newgen Software 75.56% 560.6% 319.2% 1176.5% 
Birlasoft (3.44%) 97.15% 25.32% 745.02% 

Contribution to Industry Size 

The great partnership for 30+ years of Sonata with Microsoft in the AI industry has helped Sonata grow significantly. It is helping Microsoft with 400+ clients across the globe generating Microsoft’s $650+ million revenue per annum. It has 3500+ teams on Microsoft Technologies, contributing in the industry of healthcare, retail, manufacturing, and Telecom. For corporates, it has made its own AI called Harmoni. AI with Microsoft and AWS as partners. 

Balance Sheet Analysis 

  • Reserves have been increasing gradually with high revenues and efficient management operations. 
  • Borrowing has increased year on year to fulfil the expansion and partnerships with clients for projects. 
  • The cash reserves are enough to pay the borrowed debts and acquisitions of companies to grow inorganic way. 
  • The balance sheet is strong and efficient in industry aspects. 

Cash Flow Analysis 

  • Cash flow from operations is ₹281 crore in FY24 and is positive for many years. 
  • The acquisitions have increased in the past 2-3 years because of high demand in the industry, showing great strength in the company. 
  • The borrowing has been stable and is very low, maintaining its debt-to-equity ratio. 
  • The company is paying its dividend every year constantly with good payouts to its investors.