Q2 IT sector results present a mixed bag
The recently released results for Q2FY24 were a mixed bag for the IT sector. As many as 34 companies out of the 56 that are part of the BSE IT index have posted their Q2 numbers. Data available from ACE Equity shows that 33 companies have posted net profit in the September quarter, only Ramco Systems posted a loss of Rs 146 crore in this quarter so far as 22 other companies are yet to present their Q2 earnings.
Top line: Revenues surged for 26 companies in the IT sector while 8 companies saw a decline. Among the large-caps, the gross sales for Infosys surged 3 per cent quarter-on-quarter (QoQ), followed by LTIMindtree (up 2.3 per cent), HCL Technologies (up 1.4 per cent), and TCS (up 0.5 per cent). On the other hand, Tech Mahindra (-2.2 per cent) and Wipro (-1.4 per cent) witnessed a decline in revenues.
In mid-caps, KPIT Technologies (9.3 per cent), Cyient (5.5 per cent), Persistent Systems (3.9 per cent), L&T Technology Services, and Tata Elxsi (3.7 per cent each) also posted a jump in gross sales.
Profitability: In the IT sector as many as 22 companies declared a rise in net profits while 12 companies posted a decline. Among large-caps, HCL Technologies was the biggest gainer as net profit jumped 9 per cent in the September quarter, followed by Infosys (up 5 per cent), TCS (up 2 per cent), and LTIMindtree (up 1 per cent). On the other hand, Tech Mahindra (-26 per cent) and Wipro (-7 per cent) witnessed a decline in net profits.
In the mid-cap space, Persistent Systems posted the highest QoQ increase in profit (15 percent) followed by Cyient (9 per cent), Coforge (7 per cent), Tata Elxsi (6 percent) and KPIT Technologies (5 percent).
Most Profitable IT Company: In absolute terms, Tata Consultancy Services posted the highest net profit of Rs 11,380 crore in Q2FY24, followed by Infosys Rs 6215 crore and HCL Technologies Rs 3833 crore net profit.
Formula 1: Red Bull's Max Verstappen wins Sao Paulo Grand Prix for record-extending 17th F1 win
Max Verstappen, the reigning triple world champion from Red Bull, secured his 17th victory of the Formula One season in Brazil on Sunday. He accomplished this remarkable feat by leading the Sao Paulo Grand Prix from pole position, a race that was red-flagged and subsequently restarted.
"The stars were very important today. Both of them were, I think, very good. After that the whole race was about the management of the tyres," said Verstappen.
Lando Norris of McLaren clinched the second position, earning an additional point for setting the fastest lap. In a thrilling contest that extended to the chequered flag, Aston Martin's Fernando Alonso claimed third place, narrowly beating Red Bull's Sergio Perez.
The Spaniard crossed the finish line just 0.053 seconds ahead of the Mexican after Perez passed him on the penultimate lap and Alonso, the oldest man in the race at 42, grabbed the place back on the last.
"It was like 30 laps when I had the pressure from Checo (Perez)," he said. "When he passed me two laps to the end, I thought 'okay, this is gone, the podium is not possible anymore'.
With this win, Verstappen's career victory tally now stands at 52. He had already clinched the championship title in Qatar the previous month, and Red Bull secured the constructors' title as well. Notably, Red Bull has emerged victorious in 19 out of the 20 races held this season.
Lance Stroll of Aston Martin secured fifth place, leading the pack ahead of Carlos Sainz from Ferrari, Pierre Gasly representing Alpine, and Lewis Hamilton racing for Mercedes.
Yuki Tsunoda, driving for AlphaTauri, claimed the ninth position, while Esteban Ocon of Alpine secured the final point on offer.
Ferrari faced a setback even before the race commenced, as Charles Leclerc, who had an impressive front-row qualification, crashed during the formation lap.
Lando Norris emerged as the significant beneficiary, swiftly advancing from sixth to second place as he navigated the first corner, deftly overtaking the two Aston Martins on the inside. Meanwhile, Lewis Hamilton executed a similar maneuver on the outside.
A collision at the initial corner involving the Haas duo of Kevin Magnussen and Nico Hulkenberg, along with Williams's Alex Albon, led to the deployment of the safety car. Subsequently, the race was red-flagged to address the damage to the tyre barrier.
Max Verstappen once again made a clean getaway during the standing re-start, with Norris maintaining second place and initially exerting pressure on the Red Bull driver. Fernando Alonso managed to pass Lewis Hamilton, securing the third spot.
The red flags provided an opportunity for McLaren's Australian rookie, Oscar Piastri, who had been caught up in the first-lap chaos. His mechanics had sufficient time to repair the damage and get him back on track from a pit lane start.
Additionally, Daniel Ricciardo, whose AlphaTauri's rear wing had been damaged by a bouncing tire during the initial start, was also granted a second chance.