IFMR GSB

Priyanka Jaiswal
Antra Kumari
Research report
Industry- IT

Indian IT Industry
Analysis
With a considerable impact on the GDP and welfare of the nation, the IT sector has emerged as
one of India's most important economic drivers. In FY22, the IT sector contributed 7.4% of
India's GDP, and by 2025, it is anticipated to make up 10% of India's GDP.
According to the National Association of Software and Service Companies (Nasscom), the Indian
IT industry’s revenue touched US$ 227 billion in FY22, a 15.5% YoY growth. Gartner forecasts
that India's IT expenditure will rise from an estimated US$ 81.89 billion in 2021 to US$ 101.8
billion in 2022.
According to a report published by Microsoft, consultancy firm Bain & Co, and industry body
Internet and Mobile Association of India (IAMAI), India produces 16% of the entire world’s AI
talent pool – the third highest in the world. PwC India has also announced that it plans to hire
10,000 employees in the cloud and digital technologies space over the next five years. In FY22,
the IT sector hired 4.45 lakh additional people, increasing the total number of workers to 50
lakh.
PE investments in the IT sector were $23.4 billion in 2021. In 2021, private enterprises in India's
IT startup ecosystem got record investments totalling about US$ 36 billion, up from US$ 11
billion in 2020.

TECHNOLOGICAL TREND IN IT INDUSTRY

The rapidly evolving field of information technology is constantly introducing new technologies,
tools, and ideas. The global pandemic has shifted the IT workforce to remote work, presenting
an opportunity to explore and adapt to emerging trends. To make the most of this time, here
are the top 5 transforming IT industry trends to watch for in 2022.
1. ARTIFICIAL INTELLIGENCE AND MACHINE LEARNING - AI and ML are
transformative technologies in IT, revolutionizing industries through intelligent
automation and data-driven decision-making.
2. EDGE COMPUTING AND QUANTUM COMPUTING - Edge computing brings
computation and data storage closer to the source, ensuring faster insights,
improved response times, and enhanced data security. Quantum computing
revolutionizes industries by performing faster calculations, solving complex
problems, and enabling advancements in medicine, finance, cryptography, and
healthcare applications.
3. CYBERSECURITY - Cybersecurity is a crucial trend in the IT industry as
organizations face increasing risks of cyber threats and data breaches. Protecting
data and systems is essential for businesses undergoing digital transformation.
Implementing robust cybersecurity measures is vital to safeguard confidential
information and prevent financial losses.
4. BLOCKCHAIN - Blockchain is a secure digital ledger that records information in
tamper-resistant blocks, forming a chain. It ensures transparency and immutability,
making it valuable for cryptocurrency transactions and protecting intellectual
property.
5. VIRTUAL REALITY AND AUGMENTED REALITY - VR and AR have immense
potential in marketing, gaming, education, and more. AR adds digital elements to
the real world, while VR creates a simulated environment. VR gaming is popular and
expected to grow. Both technologies are rapidly advancing and will have broader
applications soon.
About OFSS
Oracle Financial Services Software Limited is engaged in the business of providing information
technology solutions and business processing services to the financial services industry. Its
segments include Product licenses and related activities (Products), IT solutions and consulting
services (Services) and Business Processing Outsourcing services (BPO-Services). The Products
segment deals with various banking software products. Its related activities include
enhancements, implementation and maintenance activities. Its Services segment offers services
spanning the lifecycle of applications used by financial service institutions. This segment's
portfolio includes consulting, application, support and technology services. Its BPO-Services
segment provides business process outsourcing services to the lending, collections, customer
service and capital market industry. It offers a suite of banking products, such as Oracle
FLEXCUBE, Oracle FLEXCUBE Onboarding and Oracle Banking Branch.
Shareholding Pattern :-

WHY
MARKET NEWS
• Business line - the stock has an attractive dividend yield and is a safe bet amidst
volatility. Good dividend yield, robust balance sheet and business stability make it a
good investment
• Oracle Financial Services Software informs about ESOP allotment committee
meet.
IMPORTANT PARAMETERS-
PE ratio: - Price to Earnings' ratio, which indicates for every rupee of earnings how much an
investor is willing to pay for a share. A general rule of thumb is that shares trading at a low P/E
are undervalued (it depends on other factors too). Oracle Finl. Service has a PE ratio of 17.21
which is high and comparatively overvalued .
Return on Assets (ROA): - Return on Assets measures how effectively a company can earn a
return on its investment in assets. In other words, ROA shows how efficiently a company can
convert the money used to purchase assets into net income or profits. Oracle Finl. Service has
ROA of 29.09 % which is a good sign for future performance. (higher values are always
desirable)
Current ratio: - The current ratio measures a company's ability to pay its short-term liabilities
with its short-term assets. A higher current ratio is desirable so that the company could be
stable to unexpected bumps in business and economy. Oracle Finl. Service has a Current ratio
of 9.85 .
Return on equity: - ROE measures the ability of a firm to generate profits from its shareholders
investments in the company. In other words, the return on equity ratio shows how much profit
each rupee of common stockholders’ equity generates. Oracle Finl. Service has a ROE of 32.51
% .(higher is better)
Debt to equity ratio: - It is a good metric to check out the capital structure along with its
performance. Oracle Finl. Service has a D/E ratio of 0 which means that the company has low
proportion of debt in its capital.
Sales growth: - Oracle Finl. Service has reported revenue growth of 6.88 % which is poor in
relation to its growth and performance.
Operating Margin: - This will tell you about the operational efficiency of the company. The
operating margin of Oracle Finl. Service for the current financial year is 56.32 %.
Dividend Yield: - It tells us how much dividend we will receive in relation to the price of the
stock. The current year dividend for Oracle Finl. Service is Rs 190 and the yield is 6.33 %

About L&T Tech Services

L&T Technology Services Limited is an India-based engineering research and development

services company. The Company provides services and solutions in the areas of product
software, mechanical and manufacturing engineering, embedded systems, engineering
analytics and plant engineering. The Company operates through five segments: Transportation,
Telecom & Hi Tech, Industrial Products, Plant Engineering and Medical Devices. It offers a range
of engineering services and solutions for its global customers in the transportation industry for
original equipment manufacturers (OEMs) in the automotive, trucks and off-highway vehicles
and aerospace sectors. Its Telecom and Hi-tech segment provide engineering services and
solutions that cater various sectors, including telecom, consumer electronics, semiconductor
and media and entertainment. The Company exports engineering and design services to North
America, Europe, the Middle East, Japan, Korea and other Asia-Pacific (APAC) countries.
Shareholding Pattern

WHY
MARKET NEWS
• L&T Technology Services partners with Critical Manufacturing
• L&T Technology Services reports 18% rise in Q4 consolidated net profit. L&T
Technology Services has reported results for fourth quarter (Q4) and year ended
March 31, 2023.
IMPORTANT PARAMETERS
PE ratio: - Price to Earnings' ratio, which indicates for every rupee of earnings how much an
investor is willing to pay for a share. A general rule of thumb is that shares trading at a low P/E
are undervalued (it depends on other factors too). L&T Technology Serv. has a PE ratio of 36.23
which is high and comparatively overvalued .
Return on Assets (ROA): - Return on Assets measures how effectively a company can earn a
return on its investment in assets. In other words, ROA shows how efficiently a company can
convert the money used to purchase assets into net income or profits. L&T Technology Serv.
has ROA of 17.45 % which is a good sign for future performance. (higher values are always
desirable)
Current ratio: - The current ratio measures a company's ability to pay its short-term liabilities
with its short-term assets. A higher current ratio is desirable so that the company could be
stable to unexpected bumps in business and economy. L&T Technology Serv. has a Current ratio
of 3.27 .
Return on equity: - ROE measures the ability of a firm to generate profits from its shareholders
investments in the company. In other words, the return on equity ratio shows how much profit
each rupee of common stockholders’ equity generates. L&T Technology Serv. has a ROE of
25.26 % .(higher is better)
Debt to equity ratio: - It is a good metric to check out the capital structure along with its
performance. L&T Technology Serv. has a D/E ratio of 0 which means that the company has low
proportion of debt in its capital.
Sales growth: - L&T Technology Serv. has reported revenue growth of 18.33 % which is fair in
relation to its growth and performance.
Operating Margin: - This will tell you about the operational efficiency of the company. The
operating margin of L&T Technology Serv. for the current financial year is 21.90 %.
Dividend Yield: - It tells us how much dividend we will receive in relation to the price of the
stock. The current year dividend for L&T Technology Serv. is Rs 35 and the yield is 1.18 %.

About Expleo Solutions

Epleo Solutions Limited is a global engineering, technology and consulting service provider. The
ompany is engaged in providing software testing services. The Company primarily delivers
oftware validation and verification services to the banking, financial services, and insurance
dustry around the world. Its services include test management, functional testing, non-
functional sting, product testing, compliance testing, user experience (UX)/ customer
experience (CX) sting, mobile testing and managed testing services. The Company offers its
services to various dustries, including banking and finance, aerospace, automotive, defense and
naval, energy and tilities, rail and transportation, healthcare and life sciences, and space. It
serves approximately 150 ustomers in Asia-Pacific, the United States, the United Kingdom,
Europe and Middle East.
Shareholding Pattern

WHY
COMPANY IN NEWS
• Expleo Solutions informs about secretarial compliance report.
• Expleo Solutions informs about scheme of arrangement
IMPORTANT PARAMETERS
PE ratio: - Price to Earnings' ratio, which indicates for every rupee of earnings how much an
investor is willing to pay for a share. A general rule of thumb is that shares trading at a low P/E
are undervalued (it depends on other factors too). Expleo Solutions has a PE ratio of 20.83
which is high and comparatively overvalued .
Return on Assets (ROA): - Return on Assets measures how effectively a company can earn a
return on its investment in assets. In other words, ROA shows how efficiently a company can
convert the money used to purchase assets into net income or profits. Expleo Solutions has
ROA of 19.31 % which is a good sign for future performance. (higher values are always
desirable)
Current ratio: - The current ratio measures a company's ability to pay its short-term liabilities
with its short-term assets. A higher current ratio is desirable so that the company could be
stable to unexpected bumps in business and economy. Expleo Solutions has a Current ratio of
3.40 .
Return on equity: - ROE measures the ability of a firm to generate profits from its shareholders
investments in the company. In other words, the return on equity ratio shows how much profit
each rupee of common stockholders’ equity generates. Expleo Solutions has a ROE of 27.03 %
.(higher is better)
Debt to equity ratio: - It is a good metric to check out the capital structure along with its
performance. Expleo Solutions has a D/E ratio of 0 which means that the company has low
proportion of debt in its capital.
Sales growth: - Expleo Solutions has reported revenue growth of 34.44 % which is fair in
relation to its growth and performance.
Operating Margin: - This will tell you about the operational efficiency of the company. The
operating margin of Expleo Solutions for the current financial year is 18.18 %.

Thank You