5 IT stocks to watch out for on October 13

The harbingers of the Q2 results for the financial year 2023, the Information Technology (IT) companies are keeping the market abuzz.

S&P BSE IT is quoting at 27865.93 down by 166 points on October 12.

Let us see which stocks in the IT sector investors should keep an eye on.

The board of Tanla Platform has approved October 25, 2022, as the Record Date for the proposed buyback. The proposed buyback is for 14,16,666 fully paid-up equity shares of the face value of Rs 1 each to the company at Rs 1,200 per Equity Share through the tender offer process. The stock has corrected significantly in 2022, shedding a good 50% in the last 6 months. At 11.30 am shares of Tanla Platform were quoting Rs 837.70 per share with a gain of 6.8% over its previous close.

Wipro Ltd announced financial results for the quarter ended June 30, 2022, on October 13. Revenue was Rs 22,540 crore showing an increase of 14.6% YoY. PAT, however, declined by 9.3% YoY at Rs 2,660 crore as employee costs escalates during the quarter. IT services segment revenue increased by 4.1% QoQ and 12.9% YoY in constant currency terms while operating margin grew 16 basis points QoQ during the quarter to 15.1%. The Bengaluru-based IT company has guided a sequential growth of 0.5% to 2% for the December quarter. In the morning session, the shares of Wipro were trading at Rs 382.70, a loss of 6.1% over its previous close.

HCL Technologies posted 7% YoY growth in consolidated net profit at Rs 3,489 crore in Q2FY23 from Rs 3,259 crore, a year ago. Revenue, too, jumped 19.5% YoY higher to Rs 24,686 crore in Q2FY23. The board also declared an interim dividend of Rs 10 per share. The management has guided revenue to grow at 13.5-14.5% YoY in constant currency. EBIT margins guidance was revised to 18-19%. In the morning session, the shares of HCL Technologies are trading at Rs 980 a gain of 3 % over its previous close.

During the earnings call on October 13, Infosys Ltd is expected to announce a buyback of shares of roughly $1-1.4 billion (roughly Rs 8,400-11,600 crore). The second-largest IT services company in India has the potential to return Rs 25,000 crore to shareholders over the next two years, according to a report from the international brokerage. At 11.30 am, the shares of Infosys are quoting at Rs 1430, up by 0.1% or Rs 1.15 per share.

3I Infotech incorporated a wholly-owned step-down subsidiary on October 12. This subsidiary is a private company limited by shares called “Versares BPS Private Limited” and is a direct wholly-owned subsidiary of 3i Infotech Digital BPS Limited (formerly known as 3i Infotech BPO Limited), a wholly-owned subsidiary of the company based in India. At 11.00 am shares of 3i Infotech were quoting Rs 42.65 per share with a gain of 0.5% over its previous close.