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INDIAN IT INDUSTRY IT - Coggle Diagram
INDIAN IT INDUSTRY 
TECH MAHINDRA
- Strong Revenue Growth: In FY23 (ending March 31, 2023), Tech Mahindra achieved a revenue of $6.5 billion, marking a 13.4% year-over-year growth.
- Healthy Profitability: The company's EBITDA margin for FY23 stood at 17.1%,
- Debt Reduction: the net debt-to-equity ratio was 0.79, demonstrating a steady improvement from 1.02 in March 2022.
- Dividend Payout: The company has a consistent track record of rewarding shareholders with dividends. In FY23, they declared a dividend of Rs. 50 per share,
- Future Outlook: The management team projects a 9-12% revenue growth for FY24,
TATA ELXSI
- Strong Revenue Growth:The company has been experiencing consistent revenue growth, with Q1 FY24 showing a 17.14% increase year-over-year (YoY) compared to the same period last year.Recent annual reports (FY23) report a 27.3% YoY increase in operating income and a 37.4% YoY increase in net profit.
- Focus on Growing Markets:Tata Elxsi's key verticals of Transportation, Healthcare, and Media & Communications have shown substantial growth.Transportation, driven by electric vehicles and software-defined vehicles, saw a 27.4% YoY increase in Q1 FY24.Healthcare, fueled by new product engineering and digital health, grew 20.5% YoY in the same period.
- Profitability and Margins:The company maintained a healthy net profit margin of 24.0% in FY23, despite a dip from 22.2% in the previous year.Operating profit margin, although slightly lower than FY22, stood at 30.5% in FY23.
- Debt and Assets:Tata Elxsi maintains a low debt-to-equity ratio, indicating a relatively sound financial position.Current assets have steadily increased in recent quarters, showcasing strong liquidity.
- Recent Developments:The company secured significant new deals, including a multi-year agreement with a leading Asian OEM for software-defined vehicles and a multi-country deployment of its connected vehicle platform.
MPHASIS
- Strong Revenue Growth:This is driven by its core reference architectures, strong domain expertise in Banking, Financial Services & Insurance (BFSI), and deep relationships with marquee global customers.
- Profitability and Earnings: Mphasis has shown strong profitability with increasing Basic EPS and Diluted EPS in the past year (March 2023 compared to March 2022).
- Solid Financial Position: Mphasis has a robust financial position with a healthy book value per share and increasing cash EPS. This signifies stability and the ability to weather potential economic downturns.
- Recent Acquisition by Blackstone: In 2023, Blackstone Private Equity acquired a majority stake in Mphasis, making it the largest technology investment and acquisition by Blackstone in India. This signifies confidence in Mphasis' future potential and could unlock value for shareholders.
- Focus on Innovation and Transformation: Mphasis is actively investing in research and development through its NEXTlabs hub. Its "X2CTM" formula (shift anything to cloud and power everything with cognitive) drives business value through integrated consumer-centric transformation, enabling business operations and technology advancements.
HAPPIEST MINDS
- Strong Revenue Growth:Happiest Minds has achieved consistent revenue growth, FY23 reaching 26%, and EBITDA of 26.3%.Q3 FY23 saw revenue in constant currency grow by 12.7% year-over-year, reaching $96.7 million.
- Healthy Profitability:The company maintains a solid EBITDA margin, consistently above 24%. In Q3 FY23, the EBITDA margin stood at 24.9%.Profit after tax (PAT) for H1 FY23 was $7.92, while EPS (diluted) reached $7.92.
- Debt-free Balance Sheet:A significant advantage for Happiest Minds is its debt-free capital structure. This provides financial flexibility and resilience during uncertain times.
- Strong Investor Recognition:The company has received several accolades for its corporate governance practices, including recognition by Golden Peacock and ICSI.It is also Great Place to Work Certified™, showcasing its commitment to employee well-being.
- Growing Global Presence:Happiest Minds has a presence in North America, South America, Europe, Middle East, APAC, India, and ANZ. This geographical diversification helps mitigate risks and capitalize on new opportunities.
INFOEDGE
- Strong profitability: Despite a negative trailing 12-month return on equity (-0.15%), Info Edge has historically boasted strong profitability with a 5-year average return on equity exceeding 41%.
- Diversified portfolio: Info Edge's primary revenue drivers are its well-established recruitment platform Naukri.com and real estate portal 99acres.com. However, the company also holds significant investments in various internet-based companies like Zomato, Policybazaar, and Shiprocket,
- Robust cash flow: Info Edge generated healthy operating cash flow of Rs. 513.4 crores in FY 2023, highlighting its ability to generate internal funds for future investments and dividend payments.
- Debt-free balance sheet: Unlike many other companies, Info Edge remains debt-free, further strengthening its financial health and risk profile. This eliminates interest expenses, improves profitability, and provides greater borrowing capacity for future growth initiatives.
- Attractive dividend yield: Info Edge is known for its consistent dividend payouts, offering a current dividend yield of approximately 2.5%. This makes it an attractive option for income-seeking investors looking for regular returns on their investment.