Today marked the announcement of two more financial results from the main digital IT service players: Infosys and Wipro for Q4 2020.
These blogs are a placeholder for comparing the results as they get published.
Looking at the first chart we can see the results on a quarterly basis for all these firms – the top chart plotting year on year growth for the quarters and the bottom chart showing operating margin. You can see calendar Q4 2020 results have continued to show improvement and these companies navigate away from the COVID-19 related problems of Q2 and Q3. It’s encouraging that all of the firms have see sharp improvements in growth and have maintained robust margins.
Exhibit 1 – Digital IT Services quarterly results 2018 to 2020 for players with published Q4 2020 results
[iframe width=”750″ height=”900″ seamless frameborder=”0″ scrolling=”no” src=”https://public.tableau.com/views/EarlyBirdRev2/MarginvRevenueSoFar?:language=en-GB&:display_count=y&publish=yes&:origin=viz_share_link&:showVizHome=no&:embed=true”]
Source: Market Prescience Analysis of Company Financials. All quarters as a close to calendar quarter as possible.
Whilst you can see a strong curve back to growth for all of the players, the stellar Q3 and Q4 helping to get Infosys back on track – with growth in this quarter similar to rates pre-pandemic.
The second chart shows the calendar year performance of these companies – with the total revenue and annual growth. This just combines the revenue from the four calendar year quarters.
Exhibit 2 – Digital IT Services annual results 2018 to 2020 for players with published Q4 2020 results
[iframe width=”640″ height=”420″ seamless frameborder=”0″ scrolling=”no” src=”https://public.tableau.com/views/EarlyBirdRev2/USDComparisonYTDEB?:language=en-GB&:display_count=y&publish=yes&:origin=viz_share_link&:showVizHome=no&:embed=true”]
Source: Market Prescience Analysis of Company Financials. All quarters as a close to calendar quarter as possible.
Both Accenture and Infosys have managed to grow revenues, and are likely to have grown market share during the year.
The third chart shows the results for each supplier in calendar Q4 2020 on a grid comparing operating margin against revenue growth.
Exhibit 3 – Digital IT Services quarterly results Q4 2020 (Calendar)
[iframe width=”600″ height=”600″ seamless frameborder=”0″ scrolling=”no” src=”https://public.tableau.com/views/EarlyBirdRev2/SupplierPerf?:language=en-GB&:display_count=y&publish=yes&:origin=viz_share_link&:showVizHome=no&:embed=true”]
Source: Market Prescience Analysis of Company Financials. All quarters as a close to calendar quarter as possible.
As you can see the performance from all four players has been a marked improvement over Q2 and Q3 2020. Which further shows investment in digital platforms and business agility has been a priority not just in spite of the pandemic, but in some cases because of it.
Please watch this space as we will be adding additional data to this analysis over the course of this quarter.
