Quarterly Report of India’s IT Companies Year-Over-Year Analysis { Q2 } 2021

Introduction

• Calendar Year Q2 2021 is Indian Financial Year Q1 2021-22
• Financial results during calendar period from April 1 to June 30.
• India’s information technology (IT) services industry continues to gain positive momentum as most of the IT services companies covered in the report exhibited above-average growth.
• In this report, we analyze the revenues of India’s IT services sector for the first quarter of financial year 2021-22 and compare these with the same period the previous year.
• The rupee appreciated by 2.1 percent during the quarter compared with the same period last year

Executive Summary

IT companies have been minimally impacted by the second COVID wave. In the long-term, sustained growth rates are expected for the Indian IT sector. 

The pandemic has led to two major shifts – an accelerated pace of digital transformation and a hybrid work model in an evolving workplace. 

TCS, Infosys, and Wipro bode well for the sector at large, which is expected to stage a strong recovery over the next few quarters. This recovery will be led by increasing outsourcing and accelerating digital transformation services across multiple sectors. The growth expectations have improved across both enterprise software and IT services.

Quarterly Market Trends

Indian IT & Services industry recorded combined quarterly revenue of $17.6billion and recorded a 19.6% year-over-year (YoY) growth as compared to last year.

IT companies are drawing up robust hiring plans for this year on a trot, as digital deals continue to flow in, and customer projects are ramped up.

Much of the growth will be from new deals for digital transformation projects. Due to a hike in wages and increased hiring, the margin would be impacted to some extent. This would be partially offset by a reduction in travel and other costs.

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