2024, Vol. 7, Issue 1

author(s)
Jeet Goswami

abstract
The Information Technology (IT) industry involves IT services, IT-enabled services (ITES), e-commerce, and Software and Hardware products. Because of the impressive IT industry, India is now known as a knowledge economy of 21^st century. The role of IT in India’s economic development has been imperative. It is the main sector that brought foreign funds in Indian domestic market in the critical situation of Covid-19 even after facing economic hazards like lockdown, layoff, termination, labour turnover. it plays an important role in Indian economy in post COVID recovery. The IT market made a huge growth in last two decades, it is expected to contribute 10% of the GDP of India by the year 2025, which was 1.2% of GDP in the year 1998. The exponential growth of IT industry grows interest in investors to invest in this sector. To analyse the best payback companies, this paper represents a comparative study between the financial performance of top 5 Indian IT software companies. The selected companies are Tata Consultancy Services (TCS), Infosys, Wipro, HCL Ltd. And Tech Mahindra. The financial performance is measured based on financial ratios and other parameters such as Enterprise Value, Revenue, Profit After Tax (PAT), Enterprise Value / Earnings Before Interest, Taxes, Depreciation, and Amortization (EV/EBITDA) Ratio, Net Profit Margin Ratio, Price Earnings(P/E) Ratio, Return on Asset (ROA) ratio and Return on Capital Employed (ROCE) ratio for the period of 2014-2023. The comparison is made based on the graphs created with the collected data.