From Wipro To TCS - How India's IT Sector Stocks Reacted To Their Q3 Results?

All four of India¡¯s largest IT sector companies--Infosys, TCS, HCL and Wipro--recently announced their Q3 (October-December 2023) results. Thanks to the strong quarterly results of all four of them, India's stock market investors have smiles on their faces.

TCS Q3 Results & Share Reaction

TCS' net profit was down 2.5% on a sequential quarter basis/Image: fb

India's largest IT services company, Tata Consultancy Services (TCS), reported its Q3 results last week on January 11. TCS' net profit of Rs 11,058 crore in the quarter ended December 31, 2023, up 2% from Rs 10,846 crore in the same quarter a year ago.

TCS' net profit was down 2.5% on a sequential quarter basis. Consolidated revenue rose 4% YoY to Rs 60,583 crore in the three months to December 31 from Rs 58,229 crore a year earlier, TCS said in an exchange filing. TCS shares had quickly surged more than 4% on Friday morning after the strong Q3 results were announced.

TCS shares currently trade at Rs 3893 (at the time of writing this report).

Infosys Q3 Results & Share Reaction

Infosys reported a 7.3% year-on-year (YoY) fall in net profit/Image: Shutterstock

India¡¯s second-largest IT services company, Infosys too announced its Q3 results on the same day as TCS. Infosys reported a 7.3% year-on-year (YoY) fall in net profit at Rs 6,106 crore in the third quarter of FY24. Infosys managed to record consolidated revenue of Rs 38,821 crore for the quarter. Infosys' stock soared more than 7% on Friday after the Q3 results.

Infosys shares currently trade at Rs 1646 (at the time of writing this report).

Also Read: The Untold Story Of TCS' First CEO & Co-founder F. C. Kohli

Wipro Q3 Results & Share Reaction

Wipro shares have reacted positively a day after the results were announced/Image: Money Control

A day after TCS and Infosys, IT giant Wipro announced its Q3 results on Friday (January 12th). Wipro shares have reacted positively a day after the results were announced, despite a fall in its revenue and profit. The reason is expected to be that the Q3 results, even though disappointing, have beaten the estimates, as per various media reports. Wipro's consolidated net profit declined nearly 12% year-on-year (YoY) to Rs 2,694 crore, while the consolidated revenue dropped 4.4% to Rs 22,205 crore.

Wipro shares have jumped up to 13% today (Monday), and currently trade at Rs 497 (at the time of writing this report).

Also Read: After Wipro, Infosys Accuses Cognizant Of Employee Poaching

HCL Q3 Results & Share Reaction

hcl q3 results/business standard

India IT giant HCL had on January 12 reported its Q3 results. HCL announced a 6.23% year-on-year (YoY) growth in net profit at Rs 4,351 crore for Q3 of the current financial year. Consolidated revenue for Q3 grew 6.54% YoY at Rs 28,446 crore as compared to Rs 26,700 crore in Q3FY23.

HCL shares jumped over 5% today as a reaction to Friday's Q3 results, and currently trade at Rs 1585 (at the time of writing this report). The 5% jump today also meant that HCL shares hit their 52-week high of Rs 1,619.60 on the NSE in morning trade.

Why Strong Q3 Results Aren't A Common Sight For IT Giants

it sector q3 results/shutterstock

While it's a no-brainer that every quarter's financial results are crucial for the IT giants, investors are especially rejoicing this time because these strong Q3 results come despite the general trend that the third quarter tends to be on the weaker side for Indian IT companies.

The reason is the holiday season in the US and Europe, which are Indian IT giants' major clients, on account of furloughs and relatively fewer working days. So, posting strong Q3 results this time has overjoyed investors, and is being seen with optimism after a relatively dull year for the IT sector amid recession fears and a hiring slowdown.

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