India's It Industry

INDUSTRY OVERVIEW

India's IT industry can be divided into five main components, viz. Software Products, IT services, Engineering and R&D services, ITES/BPO (IT-enabled services/Business Process Outsourcing) and Hardware. Export revenues, primarily on project based IT Services continue to drive growth with IT Services. This accounts for 54.2% of total revenues followed by BPO and Engineering services at 19.5%, Software Products at 15.3% and hardware at 11%.The standalone aggregate sales of 210 Indian IT players grew by 16% to Rs 56728 crore in Q1 FY2015 over a year ago. Operating profit margins (OPM) expanded by 170 bps to 28.9% and operating profit(OP) grew 23% to Rs 16408 crore. Other Income (OI) grew a sharp 41% to Rs 2844 crore and profit after tax (PAT) grew 28% to Rs 13036 crore. Frontline player Tata Consultancy Services posted a strong all-round performance. WIPRO IT services revenues growth was in line. HCT technologies (follows June year end) closed the fiscal year with a disappointing quarter. Tech Mahindra posted good revenue growth but missed on the margin front during the quarter.