Unlike HCL Technologies, which was founded in 1991 and is now almost 80 years old, Wipro was founded in 1945 as a producer of vegetable oils.
In order to adapt to the changing business environment, it became an IT company in the 1970s and 1980s.
HCL Tech has a somewhat lower operational budget than Wipro because it has 2.1 lakh employees as opposed to 2.5 lakh at Wipro.
High attrition rates, supply chain issues, soaring prices, and the Russia-Ukraine war have all hurt the Indian IT sector, which had an unprecedented boom in the preceding two years.
In terms of sales, Shiv Nadar’s HCL Technologies has placed third among Indian IT companies for the past four years. The market never regarded Wipro as the third-largest IT company, despite the fact that it had held that position.
It is no longer true because HCL Tech outperformed Wipro and has a larger market cap than Wipro (around 2.5 lakh crore as opposed to 2.2 lakh crore).
The fact that HCL Tech trounced Wipro despite neither company’s stock rising significantly this year is remarkable. Simply said, shares of HCL Tech have decreased much more gradually than those of Wipro.
These two companies have experienced more than just a breakdown. Every IT stock fell this year, with Wipro performing the worst.
JP Morgan changed its assessment of the Indian IT sector from “overweight” to “underweight” as a result; in its study, the investment bank predicted that revenue has peaked and margins will continue to be pressured. The June quarter statistics also support its previous warning that the recession will worsen in FY23.
