This document provides an overview of the IT industry in India. It discusses the top software companies globally and in India, including TCS, Infosys, and Wipro. It analyzes the financial performance and margins of these major players over time. The document also examines the size and growth of the Indian IT industry, its contribution to GDP, FDI inflows, and exports. It notes that Nasscom forecasts 4-7% growth for the sector in the current fiscal year and double-digit growth starting next fiscal year.

1. IT Industry Analysis
Presented by
Sompal Duhan
Deepa Chandrasekar
Prof . Aman Chugh

2. World's largest software
companies
• A Top 10 extract of the world's largest software
companies according to the Forbes Global 2000 is provided
below
Source : www.wikipedia.com
www.forbes.com
Image Source : respective Company Websites

3. Computers - Software – Large
Cap (12)
Image Source : respective Company Websites

4. Industry Financials –
Computers - Software
Large Cap (in Cr.)
• Equity - 1833.24
• Sales - 100654.21
• NP - 24267.7
• M.Cap - 525559.66
• P/E - 21.66

5. Size of the Industry
5.7
45
83 85
175
0
20
40
60
80
100
120
140
160
180
200
1995-2000 2000-2005 2005-2009 2009 2020
Size - in Billion $
Source : Nasscom

6. Sector Wise Contribution to Indian
GDP
• Contribution in Indian GDP – The Indian Information
Technology industry accounts for a 5.9% of the country's GDP
Source : Nasscom
5.9%

7. FDI Flow in IT Sector
• 100% FDI is permitted through automatic route.
From April 2000 to January 2009
SECTOR
AMOUNT OF FDI INFLOWS
PERCENT OF
TOTAL FDI
INFLOWS (In terms
of Rs)
In Rs Million In US$ Million
Services Sector 787420.81 18118.40 22.39
Computer Software &
hardware
391109.74 8876.43 11.12
Source : www.fdi.com

8. Exports grew 15.01 %
• Growth of software exports made by STP, considering the
global recession. The exports grew from Rs 180155.31crore in
2007-08 to Rs 207357.92 crore in 2008-09, with a YOY growth
of 15.01 %.
• STP Scheme, which is a 100% export oriented scheme, has
attracted many entrepreneurs in the area of software and
services.
• As on 31st March 2009, 8455 units were operative out of
which 7214 units have exported software in FY 2008-09.
Source : http://www.stpp.soft.net/latestnews.html

9. Major Takeover
• Satyam's new board of directors, which met to select the
highest bidder, chose Tech Mahindra following its bid of Rs
1,757 crore for 31 per cent stake in the scam-tainted IT giant.
• Tech Mahindra offered Rs 58 for each Satyam share.
TAKE
OVER

10. Major Industry Players
TCS Infosys Wipro
Source : infoindialine.com

11. Infosys
Source : www.infosys.com

12. Finacle – Product of
• A universal banking solution to
large and medium size banks
across India and overseas.
• Infosys BPO, the company
provides finance and
accounting, and administration
and sales order processing.

13. PAT & EBITA of
0.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
7,000.00
PAT
Rs crs
0.00
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
EBIDTA
Rs crs

14. Revenue Margins of
• Q1 revenues at US$ 1,358 million
• Growth of 4.8% QoQ and 21% YoY
• 38 clients added in the quarter
• 97% from the existing clients
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
2006 2007 2008 2009 2010
Revenue
In Rs crs

15. TATA Consultancy Services
• India's IT Services industry was born
in Mumbai in 1967 with the
establishment of Tata Group in
partnership with Burroughs.
• The first software export zone SEEPZ was
set up here way back in 1973, the old
avatar of the modern day IT park.
Source : wikipedia & www.tcs.com

16. PAT Margins of
0.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
7,000.00
8,000.00
20062007200820092010
EBIDTA
0.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
20062007200820092010
PAT
In Rs crs
In Rs crs

17. Revenue Margins of
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
20062007200820092010
EBIDTA
Financial Highlights for Quarter Ended June 30, 2010:
• Operating Profits at $487 million; Growth 32.5% Y-o-Y and 5.1% Q-o-Q
• Profit After Tax at $403 million; Growth of 29.3% Y-o-Y and (4.9) % Q-o-Q
• Earnings Per Share at $0.21
Source :http://www.tcs.com/news_events/press_releases/Pages/
In Rs crs

18. Wipro
• 1945 - Western India
Vegetables Products
Limited.
• 1970 – Infotech Area
• 1977 – Wipro
• 1981 – Launched the 1st
mini computer
• 2000 – Listed in NYSE –
Mcap - USD $ 24 billion

19. PAT Margins of
0.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
20062007200820092010
PAT
0.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
7,000.00
2006 2007 2008 2009 2010
EBIDTA
In Rs crs
in Rs crs

20. Revenue Margins of
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
2006 2007 2008 2009 2010
Revenue
For the quarter ended March 31, 2010,
• IT Products business recorded revenues of Rs. 8.90 billion,
• representing a growth of 2% YoY.
• EBIT for this segment was Rs. 262 million.
• Operating Income to revenue for the quarter was 2.9%.
http://www.wipro.in/Company/
In Rs crs

21. Comparison of the Major Player
Company
Market Cap
(Rs. in Cr.)
P/E
(TTM)
(x)
P/BV
(TTM)
(x)
EV/EBIDTA
(x)
ROE
(%)
ROCE
(%)
TCS 169,444.59 28.72 11.28 21.82 39.5 44.6
InfosysTech 164,367.83 28.73 7.46 16.84 29.1 37.8
Wipro 106,269.51 22.09 6.01 16.25 32.4 28.5
0
10
20
30
40
50
TCS Infosys Wipro
P/E
EV/EBIDTA
ROE
Source : infoindialine.com

22. Som Mittal – Nasscom Chief
• The information technology (IT)
sector In India is to grow by
4%-7% this fiscal and is
expected to attain a double-
digit growth in the next fiscal
starting from April 2010.

23. Latest News….
• TCS (Mr.Ratan Tata) & Infosys (Mr.Narayana Murthy)
looking for the successors….

24. Thankyou!
From Sompal & Deepa