Industry Profile: India is the world’s largest sourcing destination for the information technology (IT) industry. IT and ITeS have significantly impacted India’s overall growth and development. India is home to some of the world’s top IT companies. Some of the leading IT firms in India are TCS, Tech Mahindra Limited, Infosys Technologies Limited, Patni Computer Systems Limited, Wipro Technologies Limited, Oracle Financial (I-Flex Solutions Ltd), Mahindra Satyam Computer Services Limited, Mphasis, HCL Technologies Limited, and Larsen & Toubro Infotech Limited. The industry employs about 10 million workforces. More importantly, the industry has led the country’s economic transformation and altered India’s perception of the global economy. The IT industry has also created significant demand in the Indian education sector, especially in engineering and computer science. The Indian IT and ITeS industry is divided into four major segments – IT services, Business Process Management (BPM), software products and engineering services, and hardware.
India’s IT industry amounts to 12.3 percent of the global market due to exports. Indian IT companies have, in recent years, started expanding their global footprint through the global delivery model to service their clients’ needs seamlessly. Industry analysts expect the top IT firms to grow between 23% and 27% in 2012 based on an increased number of discretionary projects, improved pricing, and robust business volumes. The Indian IT sector is expected to grow at a 12-14 percent rate for FY2016-17 in constant currency terms. The industry is expected to triple its current annual revenue to reach US$ 350 billion by FY 2025.
Company Profile: Formerly Promoted by HP, the Company provides infrastructure technology and applications outsourcing services, architecture guidance, and application development. The application services offered by the Company include application development as well as application maintenance and support services. It serves financial services, Insurance, healthcare, telecom, Manufacturing, Govt, Consumer and retail, logistics, and technology industries. The Company has customers all over the world. MphasiS has more than 30 offices in 19 countries with delivery centers in India, Sri Lanka, China, Australia, Japan, North America, and Europe. 72 % of the Company’s overall revenue comes from the U.S., followed by 13 % from Europe, the Middle East, the African (EMEA) region, 8 % from India, and 7 % from the rest of the world. The Company’s banking and capital market domain constitutes 36 % of its total revenue.
Shareholding Pattern: BSE Data
Financials and ratios : [table id=113 /]
Future Prospects: One of the large IT companies in India held by Blackstone, private equity, is making confidence. IT as a sector is going through a difficult time, but for the growth of any business, IT is one crucial sector. So I believe holding such an IT company in the portfolio is good.
