IT firms could see brand value loss of up to 20 percent due to COVID-19.
Indian IT services firms Infosys and HCL continue to retain their spots among top 10 of the best 100 Indian brands in 2020, according to Brand Finance India 100 2020 report.
India's fourth-largest IT firm Wipro is now ranked 11, the report revealed.
The report has classified IT services as a high impact sector that could see up to 20 percent loss in brand value due to the virus outbreak. The report is based on its observations in the 2020 Q1.
Tata group, which includes Tata Consultancy Services, has been adjudged as the most valued brand at $20 billion, and the only Indian brand to feature in Brand Finance Global 2020 ranking.
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India’s second-largest IT major Infosys’ brand value jumped 9 percent and is the fourth most valued brand, according to the report.
Infosys’ brand value stood at $7.1 billion in 2020 compared to $6.5 billion in 2019. Compared with 2019, the company’s ranked slipped from three to four. The other IT company to feature in the top 10 is HCL. HCL's brand value jumped 5.2 percent to $4.9 billion. The company retained its rank at nine.
Wipro is ranked at 11 with its brand valued at $4.3 billion in 2020, up 8 percent from last year. The company’s rank slipped by one spot compared to 2019.
At the back of the COVID-19, IT firms have performed well in Q4 FY20. However, given the uncertainty all the firms suspended revenue guidance till the time there is more clarity.
According to the Brand Finance India 2020 report, India’s top 100 most valuable brands could lose up to 15 percent of brand value cumulatively, a potential drop of nearly US$25 billion compared to the original valuation date of January 1, 2020.
Infosys registered revenue of $12.78 billion for FY20, an 8.3 percent year-on-year growth. Salil Parekh, CEO, Infosys, during the FY20 results announcement said that the company is well-poised to confront any challenge at the back of COVID-19.
This confidence, Parekh said, stems from $3.6 billion in cash and cash equivalents including investments with zero debt as of March 31, 2020. The company's large deal signings stood at $9 billion for FY20.
HCL is currently one of the fastest-growing IT services firm with a revenue of $9.9 billion and a YoY growth of 15 percent. HCL’s product focus has yielded results and it is the biggest contributor to its growth. It accounts for close to 20 percent of the overall revenue.
Wipro’s IT revenues stood at $8.2 billion, up 1.7 percent year-on-year, for FY20.
While Mphasis’ rank went up by 1 spot to 66, Mindtree’s slipped by 19 spots to 99. Its brand valuation too came down by 18.5 percent from $348 million in 2019 to $284 million.Find the full Brand Finance India 100 2020 Report here.
Read our entire coverage on India' Most Valuable Brands 2020 here.