Wipro has been surpassed by HCL Tech, which has a market valuation of Rs 2.54 trillion. Wipro’s market value as of right now is Rs 2.26 trillion. If we take a look at the share prices of both businesses, we can see that they have both experienced significant drops in value over the past year.
In a close battle with HCL Technology, Wipro loses
The well-known IT firm Wipro in the nation has been surpassed by HCL Technologies. The third-largest IT Company in the nation is now HCL Tech. For the past few years, HCL outperformed Wipro in terms of earnings, but it lagged behind Wipro in terms of market capitalization. However, in terms of revenue, profit, and market capitalization, HCL has now surpassed Wipro. Shiv Nadar is the CEO of HCL Tech, and Azim Premji is the CEO of Wipro.
Wipro has been surpassed by HCL Tech, which has a market valuation of Rs 2.54 trillion. Wipro’s market value as of right now is Rs 2.26 trillion. If we take a look at the share prices of both businesses, we can see that they have both experienced significant drops in value over the past year. The share prices of Wipro and HCL Tech have both decreased by 35.58 and 20.76 percent, respectively. Since Wipro’s market share has declined by almost 15%, it has decreased more than HCL’s. As a result, Wipro’s market capitalization also experienced a significant decline. Despite HCL’s decrease, positive earnings have been recorded.
The history of Wipro and HCL
You might be shocked to learn that Wipro didn’t begin as a technology business. In 1945, this business operated as Western India Vegetable Products Limited before changing its name to Wipro. Making crude oil and refined oil was its job. This work initially continued. When Azim Premji took over from his father in 1977 and established his own company, the organization underwent a major transformation. Following this, Wipro’s focus changed from the oil and refined products industry to technology. Western India Vegetable Products Limited was the previous name of the business before becoming Wipro Products Limited in 1982. Later, Wipro Products Limited became Wipro Limited after the company’s name was changed once again. HCL Enterprises, on the other hand, was established in 1976. Initially, HCL Enterprises’ research and development branch was known as HCL Technologies. As a division of HCL Enterprises, HCL Tech was founded in 1991 and saw quick expansion.
HCL continues its strong growth trajectory
HCL Technologies has surpassed Wipro to become India’s third largest IT company in terms of market capitalization. This is a significant development, as it cements HCL’s position as a key player in the Indian IT industry. HCL has been on a strong growth trajectory in recent years, and this latest development is a testament to the company’s continued success. The company’s growth can be attributed to a number of factors, including its strong focus on customer satisfaction and its commitment to innovation. HCL is well-positioned to continue its growth trajectory in the years ahead, and it is poised to become one of the leading players in the Indian IT industry.
| Company | Current share price | YTD performance |
| HCL Tech | ₹940 | -29% |
| Wipro | ₹414 | -42% |
| TCS | ₹3,186 | -17% |
| Infosys | ₹1,489 | -22% |
| Tech Mahindra | ₹1,077 | -40% |
Source: NSE, August 30, 2022
HCL cements its position as a key player in the Indian IT industry
HCL Technologies Ltd, part of the $8.5 billion Shiv Nadar-founded HCL Group, has beaten Wipro Ltd to become India’s third largest IT company in terms of market capitalization. This is a significant development, as it cements HCL’s position as a key player in the Indian IT industry.
The company recorded revenue growth of 20.8% in the fiscal year 2017, and its net profit grew by 31.5%. This impressive performance was driven by HCL’s strong focus on digital transformation and its deep domain expertise in key sectors such as banking, insurance, manufacturing, and retail.
The rise of HCL Technologies is good news for the Indian IT industry, which is currently facing challenging times. The industry is battling a slowdown in demand from clients in the United States and Europe, and is also struggling with the impact of new technologies such as artificial intelligence and machine learning. HCL’s rise provides a much-needed boost to the Indian IT industry, and underscores the competitiveness of India’s IT sector. With HCL now among the top three players in the Indian IT market, the stage is set for even more intense competition in the years ahead.
Reason for Wipro’s downfall
| Company | HCL Tech | Wipro |
| Revenue (FY22) | ₹85,651 crore | ₹79,093 crore |
| Net profit (FY22) | ₹13,524 crore | ₹12,238 crore |
| Headcount (Q1 FY23) | 2,10,966 | 2,58,574 |
| Attrition rate (Q1 FY23) | 23.8% | 23.3% |
| Market cap (August 29, 2022) | ₹2,56,061 crore | ₹2,27,428 crore |
Source: NSE, company reports
The Indian IT sector, which experienced an extraordinary rise in the previous two years, has been dealt a blow from high attrition rates, supply chain concerns, surging inflation, and the Russia-Ukraine war. As a result, JP Morgan cut its rating for the Indian IT industry from “overweight” to “underweight”; according to the investment bank’s analysis, revenue has peaked and margins will continue to be squeezed. Additionally, it warned that the slowdown would get worse in FY23, and the June quarter figures confirm this.
HCL Tech’s focus on research and development sets it apart from other IT companies
HCL Tech’s focus on research and development sets it apart from other IT companies. Shiv Nadar, the founder and chairman of HCL Technologies, has a clear vision for his company: to be the world’s most innovative and trusted technology company. Nadar believes that technology can and should make a difference in the world, and HCL Tech is committed to doing just that. With a strong focus on research and development, HCL Tech is constantly pushing the envelope to bring new and innovative products and services to market. Trust is also a key component of Nadar’s vision for HCL Tech, and the company works hard to build strong relationships with its customers, partners, and employees. This commitment to innovation and trust has helped HCL Tech beat Azim Premji’s Wipro to become the third largest IT Company in India. For more such updates read here.
