Analysis of

IT sector
By
Swapnil Bhongale 108
Mayur Mohite 132
Pranjali Nampalliwar 135
Sanika Raut 147
Vishal Shinde 156
 Table of contents

01 Introduction 02 Current Scenario

& Future growth

03 Analysis of IT 04 Conclusion
Companies
Introduction to
IT sector In India IT Sector started in 1967 from TCS
IT Sector got its boost in 1991 when government
implemented Economic Liberalization Policy

India IT Sector is divided into 3 types

1. IT Services – Client Server or Web Service

Ex: Government, Banking, Financial Services, Retail and
Distribution or Manufacturing.

2. IT enables services- Customer Interaction Services

Ex: Call Centre, Back-Office Services, Revenue Accounting,
Data Entry, Data Search, Data Conversion, HR Services

3. IT Software and Hardware

Ex: In this area India was lacking, so government had
introduced National Policy on Software Products – 2019
Current Scenario
India is World’s largest IT Services Exporter. India has 55% global outsourcing market share.

Indian IT Industry has more than 17,000 firms, of which over 1,000 are large firms with over 50 delivery
locations in India.

According to NASSCOM, India’s IT workforce accounts for 4.36 million employees.

The 4 IT giant Companies TCS, Infosys, Wipro and HCL Tech has 1.02 million Employees.

IT Sector has played an important role in economic growth rate. In 1998 the contribution of IT Sector in
GDP was 1.2% and in 2021 it was 8%.

India’s IT Industry Market Size in 2021 was $195 Billion of which Export Market Size was $150 Billion
and Domestic Market size was $45 Billion.

From 2000-2021, the FDI has invested $71 Billion in IT Sector of India

Bangalore is known as Silicon Valley of India. Bangalore has many IT Parks, where many companies are
there like TCS, Infosys, Wipro, HCL Tech and etc.
Future growth of IT Industry

• In 2021 the Internet users were more than 750 million

and by 2025 the Internet users will be more than 900
million.

• India is World’s second Fastest Digitized Economy

By 2025, the India’s IT Domestic market size will be
$100 Billion.

• In 2025 the IT Industry Market size will be of $350

Billion and by 2030 it will be of $1 Trillion.
 Tata Consultancy Services
Valuation ratio

PE Ratio Price to Sales Ratio price to book ratio

40 8
35 7 18
30 6 16
5 14
25 12
4 10
20
3 8
15
2 6
10 4
1 2
5
0 0
0
18

19

20

21

22

19
20
18

21
22
20182019202020212022
20

20

20

20

20

20
20
20

20
20
 Gross margin
Tata Consultancy Services 50

Profitability Ratio 40
30
20
10
0
2018 2019 2020 2021 2022

Return on assets Return on Equity

29 Return on Invested Capital
28.5 50
42
28 45 41
27.5 40 40
27 35 39
26.5 38
30 37
26 25 36
25.5 20 35
25 15 34
24.5 33
10 32
24 5

19
18

20

21

22
19

20

21
18

22

20

20

20

20

20
0
20

20

20
20

20

2018 2019 2020 2021 2022

 EBITDA margin
29
Tata Consultancy Services 28
Profitability Ratio 27
26
25
24
23
2018 2019 2020 2021 2022

Operating margin
26.5 Net margin
26
25.5 22
25 21
24.5
24 20
23.5 19
23
22.5 18
22 17
21.5
2018 2019 2020 2021 2022 16
2018 2019 2020 2021 2022
 Asset Turnover ratio
1.5
Tata Consultancy Services 1.45
Liquidity Ratio 1.4
1.35
1.3
1.25
1.2
2018 2019 2020 2021 2022

Quick ratio Current ratio Inventory Turnover ratio

4.5 1200
4.5
4 4
1000
3.5 3.5
3 3 800
2.5 2.5
2 600
2
1.5 400
1 1.5
0.5 1 200
0 0.5 0
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
0
20182019202020212022
Tata Consultancy Services
Solvency Ratio

Debt to asset ratio Debt to Equity ratio

0.12
0.08
0.1
0.07
0.06 0.08
0.05
0.04 0.06
0.03 0.04
0.02
0.01 0.02
0 0
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
Infosys
Valuation ratio

PE Ratio
Price to Sales Ratio price to book ratio
40 12
35 7
6 10
30
25 5 8
20 4
6
15 3
10 2 4
5 1
2
0 0
0
19

20

21
18

22

20

21

22
18

19
20

20

20
20

20

20

20

20

20
20
 Gross margin
Infosys 40

Profitability ratio 30

20

10

0
2018 2019 2020 2021 2022

Return on assets Return on Equity Return on Invested Capital

19.8 35
35
19.6
30 30
19.4
25 25
19.2
19 20 20
18.8 15 15
18.6 10 10
18.4 5 5
18.2 0
20182019202020212022 0
2018 2019 2020 2021 2022
 Infosys
Profitability ratio

Operating margin EBITDA margin Net margin

30 30
25
25 25
20
20 20
15
15 15
10
10 10
5
5 5
0 0 0

20

22
18

19

21
19

21
18

20

22

20

20
20

20

20
20

20
20

20

20
 Infosys
Liquidity ratio

Asset Turnover
Quick ratio ratio
Current ratio 1.15
3
3
2.5 2.5 1.1
2 2
1.05
1.5 1.5
1 1 1

0.5
0.5
0.95
0
0
21
18
19
20

22

0.9
20
20
20
20
20

18

19

20

21

22
20

20

20

20

20
 Infosys
Solvency Ratio

Debt to asset ratio

0.06 Debt to Equity ratio
0.09
0.05 0.08
0.07
0.04 0.06
0.05
0.03
0.04
0.02 0.03
0.02
0.01
0.01
0 0
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
 Wipro
Valuation Ratio

PE Ratio Price to Sales Ratio price to book ratio

6
30 4.5
4 5
25
3.5
20 4
3
15 2.5 3
2
10 1.5 2
1
5 1
0.5
0 0 0
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
 Gross margin
33
32
Wipro 31
30
Profitability Ratio 29
28
27
26
25
2018 2019 2020 2021 2022

Return on assets Return on Equity Return on Invested Capital

16
20.5 19.5
14 20 19
12 19.5 18.5
10 19 18
18.5 17.5
8
18 17
6 17.5 16.5
4 17 16
2 16.5 15.5
16 15
0 14.5
15.5
2018 2019 2020 2021 2022
18

19

2018 2019 2020 2021 2022

20

21

22
20

20

20

20

20
 Wipro
Profitability Ratio

Operating margin EBITDA margin Net margin

25 30 20
18
25 16
20
14
20
15 12
15 10
10 8
10 6
5 4
5
2
0 0
2018 2019 2020 2021 2022 0
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
 Asset Turnover ratio
0.84
0.82
Wipro 0.8
Liquidity Ratio 0.78
0.76
0.74
0.72
0.7
0.68
2018 2019 2020 2021 2022

Quick ratio Current ratio Inventory Turnover ratio

3 3 160
140
2.5 2.5
120
2 2
100
1.5 1.5 80

1 60
1
40
0.5 0.5
20
0 0 0
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
Wipro
Solvency Ratio

Debt to asset ratio Debt to Equity ratio

0.2 0.35
0.18
0.3
0.16
0.14 0.25
0.12 0.2
0.1
0.08 0.15
0.06 0.1
0.04
0.05
0.02
0 0
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
 INDUSTRY RATIO
RATIO TCS INFOSYS WIPRO AVG
Valuation ratios  
Price to earnings ratio 30.102 24.485 19.556 24.71433
Price to sales ratio 5.02 4.926 3.062 4.336
Price to book ratio 11.88 7.306 3.44 7.542
 
Profitability ratios  
Return on assets % 27.57 19.122 12.066 19.586
Return on equity % 39.626 27.24 18.424 28.43
Return on invested capital % 37.664 26.066 17.278 27.036
Gross margin %
34.734 30.17 29.466 31.45
Operating margin % 24.91 22.694 16.97 21.52
EBITDA margin % 27.08 25.592 20.556 24.4
Net margin % 19.962 17.98 15.218 17.72
 
Liquidity ratios  
Quick ratio 3.084 2.36 2.236 2.56
Current ratio 2.944 2.36 2.242 2.515333
Inventory turnover 676.598 98.072 387.335
Asset turnover 1.36 1.044 0.774 1.059333
 
Solvency ratios  
Debt to assets ratio 0.05 0.04 0.142 0.077333
“This is a quote, words full of
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Bulleted list

● Mercury is the closest planet

● Venus has a beautiful name
● Saturn is the ringed one
● Neptune is the farthest planet
● Jupiter is the biggest planet
Our team

Swapnil
Mayur Sanika Pranjali Vishal
Bhongale
Mohite Raut Nampalliwar Shinde
108
132 147 135 156
Thanks!

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