Revenue in the IT Services market is projected to reach US$26.45bn in 2024, and it is expected to show an annual growth rate (CAGR 2024-2028) of 12.98 percent, resulting in a market volume of US$43.09bn by 2028. IT Outsourcing dominates the market with a projected market volume of US$10.51bn in 2024.
Here are some of the listed Information Technology (IT) companies with a high Return on Equity and Return on Capital Employed of more than 20 percent.
KPIT Technologies
KPIT Technologies Limited is a global technology company, engaged in the business of offering embedded software, product engineering services, and AI & Digital solutions to automotive players in the market.
With a market capitalization of Rs. 40,920 Crores, the shares of KPIT Technologies Limited closed at Rs. 1,492.65, down 1.05 percent from its previous day’s close price of Rs. 1,508.50.
In terms of Return ratios, it has reported a return on equity (ROE) of 27.70 percent, a return on capital employed (ROCE) of 32.22 percent, and a Debt-to-Equity ratio of 0.02.
Its revenue from operations grew by 29.59 percent from Rs. 1,017 Crores in Q4FY23 to Rs. 1,318 Crores in Q4FY24, accompanied by profits of Rs. 112 Crores to Rs. 166 Crores.
Persistent Systems
Persistent Systems is engaged in providing software engineering and strategy services to help companies implement and modernize their businesses. The business segments include Banking, Financial Services, and Insurance (BFSI), Healthcare & Life Sciences, and Technology Companies and Emerging Verticals.
With a market capitalization of Rs. 51,911 Crores, the shares of Persistent Systems Limited closed at Rs. 3,369.75, down 0.10 percent from its previous day’s close price of Rs. 3,373.15.
In terms of Return ratios, it has reported a return on equity (ROE) of 22.05 percent, a return on capital employed (ROCE) of 28.79 percent, and a Debt-to-Equity ratio of 0.04.
Its revenue from operations grew by 14.95 percent from Rs. 2,254 Crores in Q4FY23 to Rs. 2,591 Crores in Q4FY24, accompanied by profits of Rs. 252 Crores to Rs. 315 Crores.
Oracle Financial Services Software
Oracle Financial Services Limited is engaged in providing financial software, IT infrastructure management, custom application development, consulting, and outsourced business processing services catering to various needs of the financial services industry.
With a market capitalization of Rs. 65,826 Crores, the shares of Oracle Financial Services Software Limited closed at Rs. 7,594.35, up 1.90 percent from its previous day’s close price of Rs. 7,452.95.
In terms of Return ratios, it has reported a return on equity (ROE) of 28.24 percent, a return on capital employed (ROCE) of 35.24 percent, and a Debt-to-Equity ratio of 0.
Its revenue from operations grew by 11.62 percent from Rs. 1,471 Crores in Q4FY23 to Rs. 1,642 Crores in Q4FY24, accompanied by profits of Rs. 479 Crores to Rs. 560 Crores.
Written by: Bharath K.S
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