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    HCL Tech Surpasses Wipro to Become the Third Biggest IT Company in India

    HCL Tech now overtakes Wipro as the third biggest IT Company in India based on revenue.

    With a market worth of 2.5 lakh crore compared to Wipro’s 2.2 lakh crore, the company has significantly outperformed its rival regarding revenue, profitability, and market capitalization.

    HCL Vs Wipro: A Fair Comparison

    However, both firms’ equities have experienced a significant decline, with HCL Tech‘s shares falling even farther than those of Wipro despite being the third-largest IT Company in India by revenue during the past four years.

    Aside from the constantly shifting market dynamics for the two major tech firms, all IT companies have seen big declines this year, particularly Wipro, which was viewed as a sector underperformer.

    HCL Tech’s share price has dropped by 20.76%, while Wipro share has dropped by 35.58%. According to another source, one of the factors contributing to Wipro’s declining market valuation may be the sharp decline in share prices.

    Comparing The Two Biggest It Company In India As Follows:

    • Revenue (FY22) of HCL Tech and Wipro is as follows – ₹85,651 crores ₹79,093 crore
    • Net profit (FY22) of HCL Tech and Wipro is as follows- ₹13,524 crores ₹12,238 crore

    More on HCL Technologies

    For the past four years, HCL Technologies, owned by Shiv Nadar, has ranked third largest IT Company in India among Indian IT firms in terms of sales.

    Wipro was established in 1945 as a manufacturer of vegetable oils, whereas HCL Tech was created in 1991 and is now a nearly 80-year-old corporation.

    It has been shown that HCL Tech, which has a market worth of more than Rs 2.5 lakh crore, has never outpaced Wipro by a greater margin. Wipro has a market valuation of Rs. 2.2 lakh crore, for comparison. It is commendable that HCL Tech defeated Wipro despite the company’s shares not having increased this year. This is because shares of both companies have drastically declined in 2022, with HCL Tech’s shares declining significantly less than those of Wipro. Additionally, this year saw a decline in all IT equities, with Wipro having the worst year.

    With 2.1 lakh employees compared to Wipro’s 2.5 lakh, HCL Tech is also slightly more operationally lean than Wipro. These are brought on by global political considerations, such as the conflict between Russia and Ukraine, high attrition rates, supply chain problems, and skyrocketing prices. The Indian IT industry, which witnessed an incredible boom over the past two years, has been dealt a severe blow.

    Wipro had secured its spot as the third biggest IT Company in India by market capital even though the market had not yet seen this move. As a result, JP Morgan downgraded the Indian IT sector to “underweight”; the investment bank said that revenue peaked and the margin is still under pressure. The decline will worsen by FY23, and June figures confirm this.

    Also Read: How to Register a Company in India?

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    Josie Patra
    Josie Patra
    Josie Patra is a veteran writer with 21 years of experience. She comes with multiple degrees in literature, computer applications, multimedia design, and management. She delves into a plethora of niches and offers expert guidance on finances, stock market, budgeting, marketing strategies, and such other domains. Josie has also authored books on management, productivity, and digital marketing strategies.

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