Top 200 Indian IT firms log $84 bn in FY '11 revenue

02 Aug 2011

1

The Top 200 IT companies in India logged combined revenue of Rs384,250 crore  ($84 billion) in FY '11 to grow at 25 per  cent -- the highest rate of growth in the last four years.

The revenues of these companies in FY '10 and FY '09 were Rs307,126 crore and Rs289,093 crore respectively.

The combined revenue of the Top 20 IT companies was $54 billion (Rs247,808 crore) in FY '11, also representing a growth of 25 per cent. This is significantly higher than the 8 per cent growth recorded in FY 10 with revenues of Rs198,017 crore.

The FY '11 growth surpasses the 24 per cent growth witnessed in FY '08, the year before the slowdown, according to the annual research findings on the Indian IT industry carried out by Dataquest.

Each of the Top 20 IT companies was over  $1 billion in FY '11, together posting revenues of $54 billion (Rs 247,808 crore) -- contributing 64 per cent to the Top 200 companies revenues. 

According to the findings the top 5 Indian IT companies in FY '11 were TCS, Infosys, Wipro, HP and Cognizant with revenues of Rs33,112 crore (25 per cent growth over last year), Rs25,997 crore (22 per cent), Rs24,899 crore (13 per cent), Rs23,227 crore (30 per cent) and Rs21,393 crore (37 per cent) respectively.

Wipro, which recorded the slowest growth in the Top 5, surrendered the No. 2 slot to Infosys after six years.

The No. 6 slot went to the Indian subsidiary of the 100-year old global tech behemoth IBM (revenues Rs 4,132 crore, year-on-year growth 14 per cent). The two companies founded by Shiv Nadar -- software major HCL Technologies and hardware led HCL Infosystems – posted revenues of Rs14,111 crore (28 per cent) and Rs12,137 crore (2 per cent), respectively to bag the No 7 and No 8 slot.

Two product distribution companies Ingram Micro and Redington with revenues of Rs9,766 crore (35 per cent) and Rs9,274 crore (32 per cent) bagged the No 9 and No 10 slot.

The Dataquest annual survey, which is over 25 years old, notes that significant leadership changes have taken place at the senior levels in nearly one-third of the Top 200 IT companies. ''Very rarely has a more fundamental change swept across the Indian IT industry in the past,'' Dataquest editor Shyamanuja Das observed.

As many as seven of the Top 20 companies -TCS, Wipro, Cognizant, HCL Infosystems, Accenture, Microsoft and Oracle -- effected changes in top leadership while the leadership change in Infosys will come through this month.

While Mahindra Satyam has made a re-entry after two years, it hasn't changed the ranking of top 20 companies (see table below) significantly.

Dataquest Top 20 IT companies in India: FY 2010-2011

Revenue in Rs Crore

Rank 09-10

Rank 10-11

Company

Revenue FY11

Revenue FY 10

 per cent Growth FY '11

1

1

TCS

33112

26576

25

3

2

Infosys Technologies

25997

21355

22

2

3

Wipro

24899

21949

13

4

4

Hewlett-Packard India

23227

17831

30

5

5

Cognizant Technology Solutions

21393

15646

37

6

6

IBM India

14132

12388

14

8

7

HCL Technologies

14111

10983

28

7

8

HCL Infosystems

12137

11956

2

9

9

Ingram Micro India

9766

7234

35

10

10

Redington India

9274

7024

32

12

11

Cisco Systems India

8157

6057

35

11

12

Oracle India

7934

6321

26

13

13

Dell India

7666

5709

34

14

14

Intel India

6108

5160

18

15

15

Accenture India

5672

4800

18

17

16

SAP India

5146

3924

31

NEW

17

Mahindra Satyam

5049

5084

-1

16

18

Tech Mahindra

4819

4359

11

19

19

Microsoft India

4711

3910

20

18

20

MphasiS

4498

3920

15

Source: CyberMedia's Dataquest Top 20 IT Companies Research July 2011

However, the revenues of the Next 30 companies (Ranks 21-50) grew at 29 per cent, faster than those of the Top 20 companies. ''That means they have moved from being followers to challengers,'' adds Shyamnuja. As many as 8 new companies entered the Next 30 list.

Four companies recorded triple digit growth while 150 of the 200 companies recorded double digit growth. In the FY '10, only one company grew over 100 per cent while 78 recorded double digit growths. In general, companies focused on the domestic market have grown faster than those focused on exports.

As many as 18 of the 20 fastest growing companies are focused on the India market.

''The faster growth of India focused IT companies shows that the high growth potential of Indian market is being tapped. Increasingly, we expect India to become a bigger player in the global IT scenario as a market, a technology creator and a hotbed of innovation-all rolled into one,'' said Pradeep Gupta, publisher of CyberMedia, the speciality publishing group that owns Dataquest

The top 200 IT companies in India included 129 Indian companies and 71 foreign companies who are active players in the Indian market.

Coincidentally, the top company TCS with revenue of Rs33,112 crore (minus BPO), was over 200 times the size of the two companies at the 200th rank -- Aftek Limited and Datamatics Global Services -- that posted revenue of Rs155 crore each in FY '11.

The Dataquest research is spread over three issues of the journal where the first issue has ranked the top 200 IT companies in India, the second issue will focus on ranking BPO companies (Vol II) and the third will estimate the IT industry size and analyse various segments of the industry.

While the actual industry growth would be available in third volume, the combined revenue growth of the top 200 companies is indicative of the expected broad trends in the industry.

Survey methodolgy:
The DQ Top 20 takes into account revenues of IT companies from 1 April 2010 to 31 March 2011. Though different companies have different financial years, April-March revenue for each company has been taken to maintain uniformity in comparison. Only MphasiS's revenue period is from 1 May 2010 to 30April 2011.

Revenues of IT services companies do not include their BPO revenues. BPO companies-both pure-play as well as the BPO operations of multi-services firms - are covered separately in DQ Top 20 Vol II.

For those companies that are headquartered in India or for companies that had their first delivery center in India, even if they are headquartered outside India, the entire IT revenue has been taken; and for companies that do business in India, the entire India IT revenue has been taken; for other non-Indian companies who export out of India, only the revenue generated by the Indian legal entity has been taken. That holds true for captive units as well.

For uniformity of comparison, the dollar – rupee  conversion has been taken at a constant $1=Rs 45.62 for FY '11 and $1=Rs 47.58 for FY '10.

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