PAT Growth Leaders: IT Companies in Q1FY25

The market has lately been quite enthusiastic about the IT companies. Since the announcement of the results of TCS and HCL Technologies, the market has been quite favourable to the IT stocks. Let us look at the performance of IT companies in Q1FY25.

The companies that have seen high growth in their revenues

While most of the IT companies have seen growth in their revenue on year-on-year basis, a few of them have seen very high growth YoY. The companies with the highest revenue growth in Q1FY25 over Q1FY24 are:

• Netweb Technologies (149.70%)
• Ksolves India (32.70%)
• Aurionpro Solutions (31.67%)
• Newgen Software Technologies (25.05%)
• KPIT Technologies (24.33%)
• Latent View Analytics (21.13%)
• Oracle Financial Services Software (19.08%)

The IT companies in Q1FY25 that saw the highest growth in PAT

There were a few extraordinary performers in Q1FY25. Even during the tough conditions, a few companies have managed to do well. The companies that have seen a growth of at least 20% YoY are:

• Netweb Technologies (203.34%)
• Infobeans Technologies (123.99%)
• Newgen Software (57.78%)
• KPIT Technologies (51.86%)
• Aurionpro Solutions (41.23%)
• Persistent Systems (33.94%)
• Oracle Financial Services Software (23.10%)
• Tech Mahindra (22.91%)
• HCL Technologies (20.62%)

Performance of KPIT Technologies

KPIT Technologies reported a growth of 24.33% in Q1FY25 over Q1FY24. Also, the company reported a healthy PAT of ₹204.16 crore. The company also reported that during the quarter the new deal TCV was $202 million. The company earns most of its revenues from the Passenger Cars vertical. It saw an increase of 31.7% in Q1FY25 over Q1FY24. Europe remains the biggest market for KPIT Tech.

KPIT Tech has been seeing good growth in revenue and PAT numbers in the last few quarters. In Q4FY22, the revenue and PAT were ₹651.77 crore and ₹80.59 crore, respectively. EBIDTA of the company has also seen good growth in the last two years. The market has rewarded the stock with a handsome growth in the last one year.

KPIT Technology is trading at a PE multiple of 72.93 and Price to Book Value ratio of 22.59. The ROE of the company is 31.14%. The stock has given a return of 552% in the last three years.

The companies that disappointed the market

There were a few companies which disappointed the market. Their stocks were initially beaten down but the market pushed the laggards too into the stratosphere. The stocks that reported either bad revenue or PAT numbers were:

• Wipro
• Tech Mahindra
• Cyient
• Cigniti Tech
• Coforge
• Tata Elxsi
• LTI Mindtree

Performance of IT Stocks in July 2024

Almost all the IT and ITES stocks have given positive returns in July 2024. While TCS has given a return of 12.37%, Infosys has given a return of 19.90%. HCL Technologies has given a return of 11.96%. Oracle and Persistent System too have given double digit returns in July 2024. Coforge and Sonata Software too have given returns of 16.45% and 24.42%, respectively. Even Wipro has rallied in the bullish market after a slow start in July. Newgen Software is another stock which has given double digit return in the month till now.

The stocks that have given negative returns in July 2024 are:

• Tata Elxsi
• Tata Technologies
• Cyient
• Intellect Design
• Netweb Technologies