New Delhi July 16, 2010: - The top 20 hardware and software companies in India had average revenue of $2 billion in 2009-10, according to the latest survey conducted by Dataquest, the flagship journal from the CyberMedia group.

However, the Top 20 companies just about managed to match the Indian GDP growth rate of 8.4% in rupee terms to report a combined revenue of Rs.180,193 crore (USD 39.52 billion) in FY ’10 compared to Rs.174,605 crore in FY ’09, according to the survey.

The 24th annual survey saw the Top 20 IT companies--from both IT services export and domestic IT sector--post a mixed performance, with the 8 fastest growing companies recording double digit growth. Fourteen companies had a revenue of billion dollars and above during the period.

The 5 fastest growing companies were SAP India (36% growth to Rs 3,924 crore), HCL Technologies (25% growth to Rs 10,983 crore), Dell India (25% growth to Rs 5,275 crore), Cognizant Technology Solutions (23% growth to Rs 12,741 crore) and Mphasis (19% growth to Rs 3,920 crore).

Nine companies posting only single-digit growth included industry bellwethers TCS, Wipro and Infosys, which grew at 3%, 5% and 5% respectively.

Three of the Top 20 firms—hardware distributor Ingram Micro, IT hardware and solutions firm HCL Infosystems, and IT services player Patni Computers, recorded negative growth.

The top 200 IT companies posted total revenues of Rs 307,126 crore in the year, or a growth of 6.2% (from Rs 289,093 crore in 2008-09).

The number of companies registering zero or negative growth this year rose to 68, compared to 28 a year ago.

However, there was no dearth of fast growing companies in the Dataquest Top 200 companies list. Growing sales of MicroSD cards, thanks to the exploding mobile markets, ensured that SanDisk’s growth crossed three digits (the only company in DQ 200). Kolkata based PC-maker RP Infosystems, with its Chirag brand of PCs, registered the second highest growth due to higher sales in the upcountry and government.

The fastest growing companies during the period -- Sandisk (111%), RP Infosystems (79%), EMC India (78%), Sai Infosystems (75%), and Educomp (63%) – primarily sold in India.

Commenting on the wide variation in the performance of the Top 20, Top 50 and Top 200 companies, CyberMedia publisher Mr. Pradeep Gupta said, "These mixed signals point to a robust de-risked model in a tough market, where different segments of the industry are trying to cope with industry challenges arising out of the slowdown of the last two years, while grabbing opportunities where they present themselves.”

“For example many hardware vendors grew by changing their distribution models; and the distribution firms looked for newer methods to stay afloat. The aggressive and focused IT services companies are eying acquisition of companies, contracts and talent,” Mr Gupta added.

Interestingly, in FY ’10 most of the distributors in tier two cities reported double digit growth and two of them made an entry in the Top 50 club. This is noteworthy because the biggest two distributors—Ingram Micro showed a dip in revenue and Redington, grew in single digit. The main reason is the growth of tier II cities along with the Indian economy.

Given below are the Top 20 export companies and Top20 Domestic IT companies by revenues.

More details are available http://ld2.in/dq20-2010 or www.cybermedia.co.in

Notes to the Editor: Since the figures quoted here represent the combined revenue of the Top 20 or Top 200 IT companies they cannot be represented as the revenue for the entire IT Industry.

Methodology
All the company revenues are from April 2009 to March 2010. All revenues of IT services companies do not include their BPO revenues. BPO companies—both pure-play as well as the BPO operations of multi-services firms—shall be covered separately in Dataquest Top 20 Volume II.

For companies headquartered in India, Dataquest has taken the entire IT revenue; for companies that do business in India too entire domestic IT revenue has been taken; for non-Indian companies who export out of India, Dataquest has taken only the revenue generated by the Indian legal entity. This year, Dataquest has also taken the entire export revenues of companies that had their first delivery center in India or have more than 60% of their manpower in India, even if they are not headquartered in India. That holds true for captive units as well. For all conversion purposes, exchange rate has been taken as taken $1=Rs 47.58 as the average for 2009-10.

About CyberMedia
CyberMedia, South Asia's first and largest specialty media house, with fifteen publications (including BioSpectrum, Dare, Dataquest, PCQuest, Voice&Data, Global Services and Technology Review) in the information technology, telecom, consumer electronics, and biotech areas, and is a media value chain including Internet (www.ciol.com), events, and television. The group's media services include market research (IDC India), content management and multimedia.

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