Volume : III, Issue : I, January - 2014

Abstract :

This paper attempts to analyze the financial performance of three IT giants of India – Tata Consultancy Services limited (TCS), Wipro Limited and Infosys Technologies Pvt. Ltd and understanding their foreign market exposure risk. IT industry forms a major part of service sector industry of India. Service sector of India (especially IT sector) has shown a significant progress (compounded growth rate of 7.5%, National Statistical Commission, 2001, art 7.1.2) since Indian economy opened in 1992. The growth in the service sector in India has been led by the IT–ITES sector, contributing substantially to increase in GDP, employment, and exports. According to Gartner, the “Top Five Indian IT Services Providers” are Tata Consultancy Services, Infosys, Cognizant, Wipro and HCL Technologies. Thus understanding of performance analysis of major player of the sector– TCS, Wipro and Infosys (combined turnover for FY–2013 amounting 15.8 billion, The Indian Express 27th Aug ’13) is crucial to understand the future of Indian IT sector and its exposure to foreign exchange market. With depreciation of Indian currency (depreciated to almost 60% since global economic crises 2008), understanding the exposure risk of Indian IT sector becomes all the more important. The study is based upon secondary data covering the period from 2003–2004 to 2012–2013. For analyzing the financial performance of all three companies growth analysis and ratio analysis are calculated. To understand the foreign market exposure risk Coefficient of Variation and Ratio analysis of turnover, gross profit and net profit for both companies for two different period, 2003–2008 and 2008–2013 are calculated and compared.

Article: Download PDF    DOI : https://www.doi.org/10.36106/paripex  

Cite This Article:

, PARIPEX-INDIAN JOURNAL OF RESEARCH : Volume-2 | Issue-3 | March-2013

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