Evaluating TCS, Infosys, Wipro, and HCL Tech Post Q3 FY2025 Results

The third quarter of FY2025 showcased varied performances among India's leading IT firms, influencing investment considerations.

• Tata Consultancy Services (TCS): Reported a net profit of ₹12,380 crore, marking a 12% year-on-year increase, with revenues at ₹63,973 crore, up 5.6% YoY. The company observed shorter deal cycles, indicating swift client decision-making.

• Infosys: Achieved a 7.6% revenue growth to ₹417.64 billion, surpassing expectations, and raised its full-year revenue growth forecast to 4.5%-5%. However, analysts expressed concerns about the quality of earnings, noting reliance on third-party items in the deal pipeline.

• HCL Technologies: Posted revenues of ₹298.9 billion, slightly below analyst expectations, leading to a nearly 10% drop in share value—the steepest since 2015. The company anticipates an improved demand environment for 2025.

• Wipro: Reported a 0.5% increase in consolidated revenue to ₹223.19 billion, exceeding estimates, with a 24.5% rise in net profit to ₹33.54 billion. The company forecasts a revenue growth range of -1% to 1% for the March quarter.

• Source: Reuters, Mint