The Indian IT industry has become a crucial sector for the country’s economy, with IT companies providing technology-related services and solutions to businesses and organizations.
Some of the key benefits of investing in the best IT stocks in India include high growth potential, strong financials of top companies, global exposure, attractive dividend yields, and high liquidity. The future of IT sector stocks in India is generally considered promising, though subject to various factors and uncertainties.
Listed below are IT stocks wherein the companies generate a higher portion of their revenue from the American market:
Tata Consultancy Services Ltd
With a market capitalization of Rs. 13,82,345 crores, the shares of TCS started Tuesday’s trading session on a flatter note at Rs. 3,872 compared to its previous close of Rs. 3,870.20. During the trading session, the shares hit a low of Rs. 3,810, losing around 2 percent and closed the day at Rs. 3,820.65 apiece.
Coming onto the company’s financial statements, the revenue increased by 1 percent from Rs. 60,583 crores during the December quarter to Rs. 61,237 crores in the March quarter. In addition, the net profits zoomed by 13 percent from Rs. 11,097 crores to Rs. 12,502 crores during the same period.
Looking at the revenue split across geography, the Tata Group company derives 50 percent of its revenue from the American markets. Additionally, 31.4 percent of its revenue comes from the European markets, while the remaining 18.6 percent is generated from the Asia Pacific, India, and MEA regions.
This indicates a significant reliance on the American market for revenue generation, followed by Europe and other regions.
Infosys Ltd
With a market capitalization of Rs. 5,89,651 crores, the shares of Infosys started Tuesday’s trading session on a flatter note at Rs. 1,434.70 compared to its previous close of Rs. 1,424.75. During the trading session, the shares hit a low of Rs. 1,417.55, losing around 1 percent and closed the day at Rs. 1,420.55 apiece.
As per the latest financial statements published by the company, the revenue decreased by 2.3 percent from Rs. 38,821 crores during the December quarter to Rs. 37,923 crores in the March quarter. On a contrasting note, the net profits increased by 30 percent from Rs. 6,113 crores to Rs. 7,975 crores during the same timeframe.
Regarding the revenue distribution globally, the major IT corporation derives 59.6 percent of its revenue from the American region. Furthermore, 28.6 percent of its revenue originates from the European market, with the remaining 11.8 percent generated from India and other regions worldwide.
This delineates a substantial reliance on the American market for revenue, followed by Europe and other international territories.
HCL Technologies Ltd
With a market capitalization of Rs. 5,89,651 crores, the shares of HCL Technologies started Tuesday’s trading session on a lower note at Rs. 1,376.40 compared to its previous close of Rs. 1,387.40. During the trading session, the shares hit a low of Rs. 1,362.45, losing around 2 percent and closed the day at Rs. 1,366.60 apiece.
Coming onto the company’s latest financial statements, the revenue increased marginally by 0.18 percent from Rs. 28,446 crores during the December quarter to Rs. 28,499 crores in the March quarter. On the other hand, the net profits decreased by 8 percent from Rs. 4,351 crores to Rs. 3,995 crores during the same period.
The multinational IT services company derives its revenue from various regions worldwide, with the Americas being the primary contributor at 65.2 percent. Following closely, the European market contributes 28.9 percent to the revenue stream, while the rest of the world accounts for the remaining 5.9 percent.
The company’s diversified revenue base underscores its global footprint and significant reliance on the American market.
LTIMindtree Ltd
With a market capitalization of Rs. 1,39,386 crores, the shares of LTIMindtree started Tuesday’s trading session on a higher note at Rs. 4,750 compared to its previous close of Rs. 4,743.95. During the trading session, the shares hit a low of Rs. 4,699.95, losing around 1 percent and closed the day at Rs. 4,706.40 apiece.
Coming onto the company’s financial statements, the revenue decreased by 1.3 percent from Rs. 9,017 crores during the December quarter to Rs. 8,893 crores in the March quarter. Furthermore, the net profits declined by around 6 percent from Rs. 1,169 crores to Rs. 1,101 crores during the same period.
The Larsen & Toubro group company generates revenue globally, with a substantial portion of 73.8 percent originating from North America. European markets contribute 14.6 percent to the revenue stream, while the rest of the world accounts for 11.6 percent.
This diversified revenue stream reflects the company’s broad international presence and its significant focus on the North American market.
Written By Vaibhav Patil
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