HCL isn't the first company to knock Wipro off the charts. Previously, Infosys had become India's second-largest IT services provider overtaking Wipro.
As per recent reports, HCL overtook Wipro by a small margin with a market capitalisation of over ₹2.5 lakh crore, compared to Wipro’s ₹2.2 lakh crore.
Revenue-wise, HCL sat tight at the third position for the last four years, but in terms of market cap, Wipro has retained its position.
HCL overtook Wipro not because its shares surged in 2022 — both the companies’ stocks have seen a massive drawdown this year
HCL is also slightly less than Wipro in operations, with a headcount of 2.1 lakh against Wipro’s 2.5 lakh.
Wipro was ahead of HCL by $1.8 billion in revenue terms in the financial year 2010. But, within a decade, the tables turned.
In 2021, HCL’s revenue grew 2.4% to $10.18 billion while Wipro’s declined 1.4% to $8.14 billion.
In the past one year, the share price of Wipro has plunged from ₹525 to ₹411 – a loss of 21%. In 2022, the company’s share price tumbled by more than 40%
The IT sector has been under pressure in the current economic scenario.Some of the reasons for the economic meltdown of the IT majors are:1.Fears of global recession2. High attrition3. Variable payout