Pune: The four Pune based Information Technology and Software Service firms Zensar, KPIT, Persistent, and Birlasoft lost 60 clients in the first quarter ended in June 2020. Consequently, 974 employees were laid off cumulatively at the IT firms in Q1-2020
According to the Bombay Stock Exchange filing, most of these clients are from $1 million segments, reflecting the coronavirus impacts on smaller businesses globally.
According to the TIO report, it is not only that firms lost the clients and fired employees but also won some excellent large business deals. Pune based Persistent was the only company of listed 4 IT companies that have added jobs.
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According to Sachin Tikekar, president, KPIT- “We will continue to ensure our employees’ well-being, uphold all our client commitments, and remain liquid to get through the difficult spell.”
According to Sandeep Kalra, executive director, Persistent Systems – “BFSI sector continues to be a standout, as the sector recognizes the need for new ways of reaching customers digitally.”
These 4 IT and Software Services company lost the clients but still won some great deals.
Mid-size IT company Zensar reported Rs 73.3 crore profit for the quarter ended June 30, 2020, down 6.9% over the corresponding quarter last year. The company reported few new deals wins worth $150 million during Q1FY21 and currently has a deal pipeline of $1.5 billion.
Despite the COVID-19 pandemic, Mid-size IT firm Persistent Systems has reported a 9% growth in its net profit to Rs 90 crore for the June 2020 quarter. The Pune-headquartered Persistent Systems had posted a net profit of Rs 82.47 crore during the corresponding quarter of the previous financial year. Persistent did not fire employees. In fact, they added employees.
IT company KPIT Technologies reported a 22% fall in consolidated net profit to Rs 24.2 crore for the quarter ended in June 2020. The company had posted a net profit of Rs31 crore in the corresponding period a year ago.