Archive for July 17th, 2008

Top 10 software companies in India

July 17, 2008

The Indian software industry is set to keep up its growth rate despite the slowdown in the economy. The National Association of Software and Services Companies (Nasscom) has forecast a strong outlook for FY08-09 strong with software and services revenue seen growing by 21-24 per cent. The software and services exports are set to hit the $50 billion-mark.

The software and services exports segment grew by 29 per cent (in USD) to register revenues of $40.4 billion in FY07-08, up from $31.4 billion in FY06-07. The domestic segment grew by 26 per cent (in INR) to register revenues of $ 11.6 billion in FY07-08. According to the latest Nasscom rankings, Tata Consultancy Services Ltd., Infosys Technologies Ltd. and Wipro Technologies Ltd are the top 3 revenue generators in India. Check out the top ten players in the Indian IT industry.

1. Tata Consultancy Services

Founded in 1968, TCS is one of India’s largest corporate houses. It is also India’s largest IT employer with a staff strength of 111,000 employees.

The company began as a division of the Tata Group, called the Tata Computer Centre. Its main business was to offer computer services to other group companies. Soon the company was spun off as Tata Consultancy Services after it realised the huge potential of the booming IT services.

The company posted a consolidated net profit of Rs 1,290.61 crore (Rs 12.90 billion) for the first quarter ended June 30, 2008, an increase of 7.3 per cent compared to the year-ago period.

Its annual sales worldwide stands at $5.7 billion for the fiscal year ending March 2008. During the year 2007-08,

TCS’ consolidated revenues grew by 22 per cent to Rs 22,863 crore ($5.7 billion). S. Ramadorai, is the chief executive officer and managing director of TCS.

TCS is IDC-Dataquest IT best employer in IT services in 2007. TCS also topped DataQuest DQTop 20 list of IT service providers in 2007.

2. Infosys Technologies Ltd

Infosys Technologies Ltd was started in 1981 by seven people with $250. Today, the company boasts of revenues of over $ 4 billion and 94,379 employees.

Under the leadership of N R Narayana Murthy, the company has become a global brand. The company is now headed by Kris Gopalakrishnan. The income for the quarter ended June 30 2008 was Rs 4,854 crore (Rs 48.54 billion). The net profit stood at Rs 1,302 crore (Rs 13.02 billion).

Forbes magazine named Infosys in its list of Global High Performers. Waters magazine rated Infosys as the Best Outsourcing Partner. The Banker magazine conferred two Banker Technology Awards on Infosys to acclaim its work in wholesale and capital markets in two categories – Payments and Treasury Services, and Offshoring and Outsourcing.

The International Association of Outsourcing Professionals (IAOP) ranked Infosys at No. 3 in its ‘2008 Global Outsourcing 100’.

3. Wipro

What started off as a hydrogenated cooking fat company, Wipro is today is a $5 billion revenue generating IT, BPO and R&D services organisation with presence in over 50 countries.

Premji started Wipro with the ‘idea of building an organisation which was deeply committed to values, in the firm belief that success in business would be its inevitable, eventual outcome’. The company has over 72,000 employees.

Wipro’s revenues grew by 33 per cent to Rs 19,957 crore (Rs 200 billion) for the year ended March 31, 2008. The net profit grew by 12 per cent to Rs. 3,283 crore (Rs. 32.83 billion). The revenues of the combined IT businesses was $4.3 billion with 43 per cent YoY growth.

Wipro was the only Indian company to be ranked among the top 10 global outsourcing providers in IAOP’s 2006 Global Outsourcing 100 listing. Wipro has also won the International Institute for Software Testing’s Software Testing Best Practice Award.

4. Satyam Computer Services

Established in 1987 by Ramalinga Raju, Satyam has a staff strength of 51,000 employees. In 2008, the company’s revenues crossed the $ 2-billion mark.

‘A simple, yet extensive management model to create value, which promotes entrepreneurship, a focus on the customer, and the constant pursuit of excellence,’ is the company’s mantra for success. In FY2008, its revenues saw a growth of 30.7 per cent to Rs 8,473.49 crore (Rs 84.73 billion) compared to fiscal 2007.

The net profit stood at Rs 1,687.89 crore (Rs 16.87 billion), a growth of 20.2 per cent over fiscal 2007. Satyam is among the youngest IT service companies to reach $1 billion in annual revenues. It is ranked No. 1 in the ASTD (American Society for Training and Development) BEST Award, 2007.

5. HCL Technologies

HCL is a leading global technology player with annual revenues of $4.9 billion. The HCL Enterprise comprises two companies listed in India, HCL Technologies and HCL Infosystems. Founded in 1976, HCL is one of ‘India’s original IT garage start ups’.

The HCL team comprises 53,000 professionals of diverse nationalities, operating across 18 countries. At a time when India had a total of 250 computers, Shiv Nadar led a young team which passionately believed in the growth of the IT industry.

Three decades later, he succeeded in creating a $ 4.9 billion global enterprise. The company has reported consolidated revenue of Rs 3017.5 crore (Rs 30.17 billion) during the quarter ended March 31, 2008. The profit after tax stood at Rs. 81.5 crore (Rs 815 million).

6. Tech Mahindra

Tech Mahindra was incorporated as a joint venture between Mahindra & Mahindra and BT plc in 1986 under the name of ‘Mahindra-British Telecom’.

Later, the name was changed to ‘Tech Mahindra’, in order to reflect the diversification and growth of the client base and service offerings. The company was incorporated in 1986. Tech Mahindra is a global systems integrator and business transformation consulting firm focused on the communications industry. At the helm of the fast expanding organisation is Vineet Nayyar.

In a career spanning over 40 years, he has worked with the government, international multilateral agencies and the corporate sector. Tech Mahindra’s net profit rose 8.57 per cent to Rs 196.4 crore (Rs 1.96 billion) on 6.09 per cent growth in net sale to Rs 911.6 crore (Rs 9.11 billion) in Q3 December 2007 over Q2 September 2007.

7. Patni Computer Systems

Patni Computer Systems Ltd one of the leading global providers of information technology services and business solutions. The company has clients across the Americas, Europe and Asia-Pacific locations.

The company has serviced more than 400 Fortune 1000 companies, for over two decades. Patni Computer Systems Limited was incorporated on 10 February 1978 under the Companies Act, 1956. On 18 September 2003, the Company converted itself from a private limited company into a public limited company.

The company headed founded by Narendra K Patni by has a staff strength of over 14,000 professionals. The revenues for the quarter ended March 2008 stood at $ 176.4 million (Rs. 7,061.2 million) up 13.1% YoY from $ 156.0 million (Rs. 6,724.1 million). The net income for the quarter at US$ 18.1 million (Rs. 724.6 million) down 35.0 per cent YoY from $ 27.8 million (Rs. 1,200.3 million).Frost & Sullivan ranked Patni 1st among ‘Top 5 Engineering Service Providers’.

8. i-flex Solutions

iflex started as a division of Citicorp (now Citigroup), wholly owned subsidiary called Citicorp Overseas Software Ltd. (COSL) in 1991. Later, a separate company Citicorp Information Technologies Industries Ltd. (CITIL) was formed and Rajesh Hukku was appointed as its head.

CITIL started off with the universal banking product, MicroBanker which became very successful. In the mid-90s, CITIL developed Flexcube at its Bangalore development centre. After the launch of Flexcube, all of CITIL’s transactional banking products were brought under a common brand umbrella. CITIL changed its name to i-flex solutions to reflect its growing independence from Citicorp and to strengthen its Flexcube brand.

In 2006, i-flex became a majority-owned subsidiary of Oracle Corporation i-flex posted a top line growth of 8 per cent QoQ with revenue for the quarter ended March 31, 2008 at Rs 672 crore (Rs 6.72 billion) as compared to Rs 601 crore (Rs 6.01 billion) for the corresponding quarter during the previous year representing a 12 per cent YoY growth.

The net income for quarter stood at Rs 185 crore (Rs 1.85 billion) representing 73 per cent growth QoQ. The revenue for the full year ended March 31, 2008 stood at Rs 2,380 crore (Rs 23.80 billion), up 15 per cent as compared to the previous year.

9. MphasiS

MphasiS Limited was formed in June 2000 after the merger of the US-based IT consulting company MphasiS Corporation (founded in 1998) and the Indian IT services company BFL Software Limited (founded in 1993).

Jeya Kumar is CEO of MphasiS, which has a staff strength of 27,000 people. For the year ended 31 March 2008, the MphasiS Group recorded revenues of Rs 2,423 crore (Rs 24.23 billion), a growth of Rs 662 crore, which is 38 per cent over the previous year.

The net profit increased by 42 per cent from Rs 180 crore (Rs 1.8 billion) to Rs 255 crore (Rs 2.55 billion) during the year ended 31 March 2008. MphasiS was named among amongst the Top 100 Companies in Global Outsourcing.

10. L&T Infotech

L&T Infotech is a global IT services and solutions provider. It is a subsidiary company of is Larsen & Toubro Ltd. (L&T), an engineering, manufacturing and construction conglomerate, with global operations.

A M Naik is the chairman of the company. Originally founded as L&T Information Technology Ltd (LTITL), a wholly-owned subsidiary of Larsen & Toubro Ltd (L&T), the company changed its name to L&T Infotech on 1st April, 1997. In 2004, it tied up with Fidelity Information Services, a division of Fidelity National Financial to provide banking solutions for the Indian banking industry. In 2007-08, L&T had

Courtesy :- Rediff


Oil price in India not to change for now

July 17, 2008

In the first signs of good news on the crude front in many months, oil dramatically went off the boil on Tuesday, falling by a steep $6.44 a barrel on Nymex (New York Mercantile Exchange), the sharpest decline in a single trading session in dollar terms in 17 years.

On Wednesday, crude fell another $2.03 a barrel from Tuesday’s close to $136.71 for European contracts at the time of writing. This is quite a decline from Friday’s record of $147.27 a barrel.

The slide had set in on Tuesday when oil plunged $6.44 a barrel to $138.74 in a volatile trading session. The price had swung from a high of $146.73 a barrel to a low of $135.92.

In a clear indication that crude prices still remain linked to speculation and the US economy, and not increased demand from India and China, as alleged by some, market watchers said oil’s slide was sparked by fears of a drop in demand in America on fears of a slowdown and a rising oil stockpile in the US.

Consumer prices in the US have risen 5% from a year ago and recorded the biggest monthly jump since 1982. Already, motor fuel demand has dropped 5%. The demand squeeze is only expected to worsen, as has been indicated by Federal Reserve chairman Ben Bernanke.

The steep fall in the oil price coincided with Bernanke’s semi-annual forecast to US Congress, in which he said there was a ‘‘high degree of uncertainty” about the US economic outlook. The slide started while Bernanke was speaking on the television.

Market fears were also intensified by the latest forecast by OPEC, which accounts for 40% of global oil supplies. The cartel of oil exporting nations said world demand will rise by 900,000 bpd (barrels per day) next year, which is 100,000 lower than what is being seen this year.

For the Indian consumer, however, this will translate to lower prices only if the declining trend continues for some months to pull oil down to $100-a-barrel level, experts said. It is too early to say whether the drop in price in the past two days is the beginning of a decline which could see oil settling in range of, say, $100-125 a barrel.

There are too many factors, besides fears of demand slowdown and changes in the dollar value, that impact global oil trade. For example, escalation in tensions between the US and Iran, attack on facilities in big producer country like Nigeria or major disruption in global refining capacity due to breakdowns or hurricanes could spark speculation and another rally.

Fuel prices in India, however, will not change for either consumers or oil companies in the immediate future for two reasons. One, because any change in oil price on Nymex hits our shores only after about a fortnight. Two, present retail prices correspond way below Tuesday’s closing price of crude.

On Tuesday, for example, the mix of crude India buys, which is lower than Nymex quotes, stood at $136.97 a barrel against $138.74 on Nymex. On Monday, the Indian mix had stood at $140. For July, the Indian mix has been averaging $138.74. Against this, the present pump prices correspond to roughly $123-125 a barrel of Indian mix. Thus, a big gap still remains.

This means in terms of Indian mix, crude prices have risen from $123-25 a barrel to $138. In their latest forecast, state-owned oil marketing companies reckon they will close the year with a loss of Rs 222,785 crore.

They are still losing Rs 16.70 on petrol, Rs 27.61 on diesel, Rs 38.09 on kerosene and Rs 338.53 on cooking gas. But if trend continues, then there will be less pressure on government to raise prices and oil companies can hope to arrest further losses.

Courtesy :- Economic Times