HCL Technologiesm a Shiv Nadar company, has jumped ahead of Wipro, with a market capitalisation of more than Rs2.5 lakh crore against Wipro’s market cap of Rs2.2 lakh crore.
HCL Technologies has been the third largest IT service provider in India for the past four years in terms of revenue, although Wipro remained the third largest IT company in terms of market capital.
It is worth noting that while both companies have experienced a huge drawdown in their stocks this year, HCL Tech’s shares fell significantly more than Wipro’s.
Almost all stocks declined in a vulnerable market. However, Wipro was the worst performer.
However, HCL is smaller in terms of manpower and efficiency of operation. HCL Tech’s headcount is 2.1 lakh, compared to Wipro’s 2.5 million.
HCL Technologies, which was established in 1991, is also much younger than Wipro, which was established in 1945, although as a manufacturer of vegetable oils at that time.
Wipro has been able to adapt to the changing business environment of the 1970s and 1980s, to emerge as an IT company.