India’s technology space remains a continuously evolving market. The rise in the contribution of the IT sector to the development of the nation, measured by Gross Domestic Product (GDP), from 1.2% in 1998 to 8% in 2020 speaks for itself. In 2019-20, India commanded 55% of the aggregate $200-250 billion global services sourcing business, making it the largest sourcing destination of the world in the IT-BPM industry.

Quarter 1 performance of the top-five large-cap IT companies

Name of the company Revenue reported in June 2021 (in crore) Revenue reported in June 2020 (in crores) % growth in revenue (Y-o-Y basis) Other important statistics 
TCS Rs.45,411 Rs.38,322 18.5%
  • 28.5% YoY growth in net profit
  • Operating margin for April-June 2021 was 25.5%
  • Currency topline grew 4.1% in Apr-June 2021
Infosys Rs.27,896 Rs.23,665 18%
  • Fastest growth over the last decade
  • 22.7% YoY growth in net profit
  • Constant currency growth grew by 16.9% YoY and 4.8% QoQ
Wipro Rs.18,254 Rs.14,913 22.3%
  • Consolidated net profit grew by 35.6% YoY and 9% QoQ
  • Expected sequential growth between 5% and 7% in FY 2021-22
  • EPS grew 41% YoY
HCL Technologies Rs.20,068 Rs.17,842 11.7%
  • 9.9% YoY increase in net profit
  • Revenue is expected to grow in double digits this financial year in constant currency 
  • EBIT grew 20% YoY
Tech Mahindra Rs.10,198 Rs.9106 12%
  • 39.2% YoY growth in consolidated net profit
  • In the terms of USD, net profit grew 42.2% and revenue grew 14.6% YoY
  • Q1 recorded the highest ever quarterly revenue and PAT

Quarter 1 performance of the top 5 mid-cap IT companies

Name of the company Revenue reported after June 2021 (in crores) Revenue reported after June 2020 (in crores) % growth in revenue (Y-o-Y basis) Other important statistics 
Happiest minds Rs.253.87  Rs.186.99 41%
  • 29% YoY decline in the net profits
  • EBITDA margin was 26.1%
  • 18 new clients added to the company’s portfolio
CAMS Rs.201.18 Rs.148.63 35.36%
  • 59% YoY growth in PAT
Firstsource Solutions Rs.1484.8 Rs.1062 39.8%
  • 51.8% YoY growth in consolidated net profit
  • Revenues increased 38.5% YoY in constant currency
  • The company added 17 new clients to its roster
Tanla Platforms Rs.630.68 Rs.468.77 25.67%
  • Net profit grew from Rs.78.60 crores last year to Rs.104.5 crores this year
  • The top 20 customers of the company grew by 31% YoY
Route Mobile Rs.377.52 Rs.362.44 22%
  • PAT grew 37% YoY
  • EBITDA margin was 13%

Quarter 1 performance of the top 5 small-cap IT companies 

Name of the company Revenue reported after June 2021 (in crores) Revenue reported after June 2020 (in crores) % growth in revenue (Y-o-Y basis) Other important statistics 
NIIT Rs.301 Rs.201.8 49%
  • Consolidated net profit increased by 78% YoY
  • The CLG arm of the company posted a revenue growth of 47% YoY
Newgen Software Rs.132.1 Rs.159.5 20.8%
  • Net profit was reported at Rs.21.6 crores which was more than double of Rs.9.1 crores last year
  • The company boasted of winning 11 new logos in a year
Vakrangee Rs.132 Rs.60.65 117.64%
  • PAT grew from Rs.9.21 crores to Rs.20.17 crores
  • Earnings before taxes also doubled from Rs.12.91 last year to Rs.26.33 this year
Subex Rs.80.6 Rs.88.7 -9.1%
  • 11% YoY decline in the net profit
Sonata Software Rs.1268 Rs.953.38 33%
  • Consolidated net profit jumped 74% YoY
  • EBITDA margin improved by 165 bps YoY
  • PAT grew by 4% YoY

Deep Dive into Quarterly Results 

Net profit

In terms of net profit, many companies delivered double-digit growth over the AMJ 2021 quarter. The digital uptake as the world moved into our homes during the lockdowns seems to have helped the cause for the IT companies in India.

TCS and Infosys registered 28.5% and 22.7% growth in their net profits, respectively, while Tech Mahindra overtook them by registering a growth of 39.2% in its consolidated net profit at Rs 1,353.2 crore for Q1 FY 2021-2022.

In the mid-cap space, Happiest Minds reported a decline in net profit by 29%, but that mainly came on the back of an exceptional expense the company had to undertake of a few crore. The profit after tax for CAMS, meantime, increased by 59% to Rs 63.24 crore.

Among small-cap companies, Newgen Software delivered more than 100% growth in its net profit to Rs 21.6 crore while NIIT saw a stellar 78% y-o-y increase in its consolidated net profit to Rs 51 crore.


The overall revenue of the IT sector has been on a great footing over the past few years and this quarter was no different. Almost every leading company delivered increased revenue figures on a y-o-y basis which highlights the potential in the sector. Here are some top revenue numbers across companies:

Wipro, a megamoth in the industry, posted revenue growth of 22.3% to Rs 14,913 crore in the first quarter of the financial year while TCS followed behind with 18.5% growth that took its revenue figures to Rs 45,411 crore. 

Mid-cap companies too posted better revenue numbers as Happiest Minds led the race with a growth of 41% in revenue to Rs 253.87 crore, followed closely by FirstSource Solutions and CAMS at 39.8% and 35.36% revenue growth, respectively,  in Q1 FY 2021-2022.

Small-cap company Vakrangee doubled its revenue within a year to post impressive growth of 117.64%. The revenue for the company stood at Rs 132 crore in the quarter against Rs 60.65 crore in the same period the previous year.

New orders

The demand for IT services grew multifold in the quarter as more and more people were accessing services from the comfort of their homes. The IT sector kept pace with providing seamless services to businesses and retailers. 

TCS reported new deals in the first quarter of the year valuing $8.1 billion. This is a 17.3% y-o-y growth in the company’s new orders. HCL Tech secured 8 large services deals and 4 product deals. These deals were across oil and gas, financial services and technology verticals. Happiest Minds made 18 new additions to its clientele and Firstsource Solutions added 17 new clients. NIIT’s CLG (Corporate Learning Group) boasted of a 47% y-o-y growth in customer acquisition after the first quarter. It signed 3 new contracts for Managed Training Services in the life sciences segment. It also expanded the scope of work with two existing customers. CLG’s total number of MTS customers stands at 59. 

Best performing segment: Digital services and Cloud

Expectedly, the digital services and cloud computing verticals of IT companies grew substantially in the first quarter. This growth was boosted by the increased dependency on online services and the demand for cloud computing across organisations as well as individuals. TCS, HCL Tech, Tanla Solutions, Sonata Software, all dedicated their Q1 performance to the pandemic-led digital boom.

Digital revenue for Cognizant grew by around 15% y-o-y and was 44% of the company’s revenue in Q1 FY 2021-2022, up from 39% in the prior-year period. For Infosys, the figure constituted 53.9% of total revenues, a y-o-y constant currency growth of 42.1%. Wipro’s revenue from IT services increased by 12.2% to US$ 2.4 billion. NIIT also reported significant uptake of their digital transformation services. The company said, NIIT’s Skills and Careers Group has transitioned its customers to the digital platform which contributed to a 62% y-o-y growth in its net revenue.


Statewide lockdowns and the strike of a second bout of infections following the pandemic played spoilsport as companies were forced to undertake cost-cutting measures and lay off employees. The launch of the vaccine, recovery of the economy and higher demand for digitized services, led to a renewed hope and trust in the sector.

However, many firms reported seeing a sharp spike in attrition as the focus shifted to digitization skills. According to a study conducted by a popular human resources company, the attrition rate in the IT sector was the highest among all industries in India at 8.03% in the April-June 2021 period. 

Tata Consultancy Services reported 140 basis points to rise in attrition levels during Q1 FY 2021-2022 at 8.6%. US-based technology firm Cognizant, which has two-thirds of its employees in India, reported a record high attrition of 31% this quarter, of which 29% was voluntary. 

To make up for it, the company has said it will hire 1 lakh experienced professionals this year. Other IT majors Infosys, Wipro, and HCL Tech also reported high attrition rates at 13.9%, 15.5%, and 11.8%, respectively, in the April-June quarter. For Happiest Minds, the attrition rate came in at 14.7%.

The Road Ahead

Recently valuations of many IT stocks have gone up. TCS became the second Indian firm after Reliance to reach Rs a market cap of13 lakh crores. Infosys hit $100 billion m-cap, the fourth Indian company to reach the milestone after Reliance ($140 billion), TCS ($115 billion) and HDFC Bank ($100.1 billion). Increased orders and higher reliance on digitisation has helped the sector to sail through the pandemic. Market analysts believe such reasons present a good prospect for the sector in the future. The high valuations and high demand for IT services will mostly sustain in the future. Management commentaries about respective companies are also positive.