Tag: COVID

Headcount at top-4 IT companies declines for the first time in over a decade

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The headcount at India’s top four information technology companies–Tata Consultancy Services (TCS), Infosys, Wipro, and HCLTech–declined for the first time in over a decade.

From April 2023 to March 2024, the net headcount fell by over 62,000, following net increases of over 84,000 in FY23 and more than 240,000 in FY22–the year when IT companies hired aggressively in the post-pandemic digital boom.

January-March was the fifth consecutive quarter when the four leading IT companies reported an aggregate decline in headcount.

Except HCLTech, all the other three IT companies – TCS, Infosys, and Wipro reported a net headcount decline in FY24.

The biggest headcount cuts were seen in Wipro and Infosys at approximately 24,000-25,000 employees for the full year.

Let’s look at the reasons for the sharp drop in headcount

Growth slowed down materially:
As the discretionary spending environment turned adverse due to high-interest rates and cautious client consumer sentiment in their mainstay markets of the US and Europe, the growth rate declined from double-digits to low-single-digits. Wipro reported a decline in its revenue in FY24.

Companies overhired in FY22:

This was primarily due to elevated demand and elevated attrition. The FY22 hiring of 240,000 employees matched the total hiring by these companies from FY18 to FY21.

Attrition has meaningfully come down:

During the COVID period the great resignation gripped the tech sector. In FY22, the attrition was high, at nearly 20%. However, attrition rates have now treaded back to normal levels around low teens. Therefore, companies need to hire less to backfill.

The growth outlook continues to remain dim:

Both HCLTech and Infosys are guiding for low single-digit growth in FY25 and the current demand can be serviced by improving the utilisation of their employee base through productivity enhancement measures. The biggest reason to hire is growth, and demand so far hasn’t been forthcoming.

What the companies said during Q4 results:

TCS: “We have commenced fresher hiring from campuses and continue to recalibrate our lateral hiring focusing more on utilising the capacity that we have built over the prior years.”

Infosys: “We started the year with 77% utilisation including trainees and the demand environment was different. Our utilization has now gone up to 82%, including trainees. There is still some headroom because we have always said 85% is achievable utilisation. Attrition has significantly come down. Plus, we got some benefit from our value-based selling in terms of pricing. So, all of that has also resulted in lesser requirement in terms of headcount.”

For more, watch the accompanying video

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Vinati Organics MD expects minimal benefits from anti-dumping duty on butylphenol

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Vinati Saraf Mutreja, Managing Director of Vinati Organics says the anti-dumping duty imposed by the government on imports of a key chemical compound is not likely to lead to any significant gains for the company.

The Ministry of Finance imposed an anti-dumping duty on imports of para-tertiary butyl-phenol (PTBP) last month.

“The impact of this duty is not very significant because PTBP product as a whole is not a very large product (less than 10% of overall revenue) in our portfolio,” she said.

The potential benefit of the duty would be around ₹4 crore, she said.

Mutreja said that the fourth quarter of the last financial year has been particularly strong.

The new financial year (FY25) is expected to outpace FY24 by 20-25% as the trend of destocking seems to be nearing its conclusion, she stated.

“We are seeing good recovery for most of the products, customers are sitting on very little or zero inventory and hence the reordering has picked up,” she said.

Most of the demand is coming from the export market and in “Domestic as well, we are seeing demand shaping up quite strongly.”

She believes that because of the Red Sea issue and bridge collapse in Baltimore, freight rates to the US and Europe have doubled from all-time lows.

“But we have seen many highs during COVID, so it has still not gone up to those levels, it is still 30% of that. It is being transferred and most customers are obeying that cost,” she said.

Also Read | Baltimore brige collapse: The Indian crew may take months to return home

The company is expanding and adding a new line for 2-Acrylamido 2 Methylpropane Sulfonic Acid (ATBS), which is about ₹300 crore investment and is expected to be completed by December 2024.

On March 11 this year, the company subscribed to an additional ₹499 crore fully paid-up equity shares of its wholly-owned subsidiary, Veeral Organics Private Limited (VOPL).

“We have almost commercialised and started trial production in VOPL, which is our subsidiary where we have new niche products like MEHQ, Guaiacol and a few others,” she explained.

The current market capitalisation of the company is ₹15,674.26 crore.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Storyboard18 | MakeMyTrip CMO discusses emerging travel trends and AI

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a recent interview with Storyboard18, Raj Rishi Singh, Chief Marketing Officer of travel company MakeMyTrip, delved into the evolving landscape of travel in 2024. Shedding light on the role of AI, emerging travel trends, and the company’s strategies for the upcoming summer season, Singh shared insights into the travel industry.

One notable trend highlighted by Singh is the shift in travel patterns post-COVID-19 pandemic. “People want to go to newer places. It is not only about the beaches in Goa; you are also doing temples in Goa, waterfalls in Goa, trekking in Goa. So Indians are into discovering new things and travelling more,” he stated.

Also Read | Tourism boom helped hotel stocks surge 100-150% in the past year. How will FY25 shape up?

It’s not just about the traditional tourist spots; individuals are increasingly exploring lesser-known destinations and engaging in diverse activities. From temple visits to waterfall treks, the desire for exploration and discovery is driving Indians to broaden their travel horizons.

Staycations and homestays have also surged in popularity. Additionally, Singh pointed out a growing interest in spiritual travel, with searches for spiritual destinations on the rise. “The Ayodhya Ram Temple launch has propelled the spiritual being within people and people are also now searching for travel to religious places,” he said.

Also Read | MakeMyTrip logs all-time high quarterly gross bookings, revenue and net profit in Q3

Looking ahead, MakeMyTrip is gearing up for the summer season with innovative offerings and targeted marketing strategies.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Kotak’s Pratik Gupta still finds value in these two sectors in a pricey market

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indian market is expensive but there are two sectors that still have value, says Pratik Gupta, CEO & Co-Head, Kotak Institutional Equities. “Banks and insurance companies are still trading below their pre-COVID valuations. We continue to like the large top two-three state-owned banks. The main benefit over there being despite the strong price performance, valuations are still attractive,” he said.

He also likes three-four top private banks. However, given the ongoing tight liquidity situation, he expects slightly weaker earnings growth for the banking sector in the March and June quarters.

Gupta said, at 22,200, India’s Nifty is currently trading at 20.5 times one year forward earnings, “which is not cheap by any stretch of the imagination.”

Current valuations beat all record in India’s trading history – whether one takes a five-year period, 10-year period, 15-year period — or compares it with the likely growth ahead. He believes corporate earnings growth is slowing down. For FY24, Kotak Institutional Equities is expecting the Nifty to grow earnings by about roughly 18-19%. However, over the next two years, the growth is expected to slow down to about 12% on average.

Gupta is a bit cautious in the short-term on PSU defence companies despite a very positive long-term view. He also sees a little bit of a slowdown in electric vehicle (EV) space in the short term

Gupta also shared insights on the rising trend of stake sales by large investors, private equity funds, venture capitals in companies, or even MNC promoters paring stake in their Indian entities. “After the earning season every quarter, you do tend to see a resumption of stake sales coming through. So this quarter is no major surprise as such,” he explained.

On February 20, nearly 25% equity of Whirlpool of India change hands in block deals valued at over ₹4,000 crore. The parent entity, as of the December quarter, owns a 75% stake in the company. In August last year, GMM Pfaudler’s parent, Pfaudler International sold a 13.5% stake in the Indian arm via block deals, post which, its shareholding in the company fell below 1%.

Timken India parent also sold 8% equity via block deals in June last year. In eight months since that transaction, which took place on June 20, 2023, the stock has been an underperformer, declining 13%.

Similarly, Thomas Cook promoter Fairbridge Capital also offloaded an 8.5% stake in November last year through an Offer for Sale.

Gokaldas Exports also saw its promoter Clear Wealth sell around 10% stake in the company in March last year. The management told CNBC-TV18 back then that the promoter did not intend to sell any further stake in the company.

Also Read | Govt sold stake in six PSUs since 2023, five of which are up over 100% from their OFS price

Gupta believes this adds more liquidity to the stocks which otherwise may have a lower free float. However, investors need to look at the fundamentals of the company from a longer-term perspective and not get too hassled by these stake sales by promoters, he advised.

For more, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Vinati Organics targets 15-20% revenue growth for FY25

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Vinati Organics, a company that specialises in speciality chemicals and is based in Maharashtra, had a tough third quarter this year (Q3FY24). Its earnings before interest, taxes, depreciation, and amortisation (EBITDA) declined by 22%, and its profit after tax (PAT) decreased by 28%.

In an interview with CNBC-TV18, Vinati Saraf Mutreja, MD of Vinati Organics said the next financial year will be better with recovery in the existing products and some of the new products coming on stream. He expects revenue growth of 15-20% in FY25.

Also Read | Vinati Organics sees capacity utilisation improving in FY25, stable margins

The company’s revenue decreased from ₹516 crore in Q3FY23 to ₹448 crore in Q3FY24. Additionally, its EBITDA declined from ₹148 crore to ₹115 crore. Consequently, the operating profit margin decreased from 28.6% to 25.6%, and the profit after tax decreased from ₹107 crore to ₹77 crore.

Discussing the strategies known as “Europe-plus-one” and “China-plus-one” in the chemical industry, Saraf mentioned that India is well-positioned to fulfil the demand. She highlighted various government incentives, such as production-linked incentive (PLI) schemes, attracting interest from multinational companies (MNCs) and those based in Europe and the USA. These companies are now looking at India as an alternative supplier, making the “China-plus-one” strategy a lasting trend. Indian companies stand to benefit from this shift in the coming years.

Many countries relied heavily on China for various products, but during the COVID pandemic, when China shut down, the limitations of this dependency became clear. This realisation prompted the adoption of the “China-plus-one” strategy, emphasising the importance of diversifying the supply chain.

Also Read | China plus one strategy is playing out in pharmaceutical space, says expert

Over the past year, the Vinati stock has declined by more than 8%. The company’s market capitalisation is currently at ₹17,497.62 crore.

For the entire interview, watch the accompanying video

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Active Covid cases in country recorded at 4,423

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India saw a single-day rise of 760 new cases of Covid while two more people succumbed to the viral disease, the health ministry said on Thursday. The number of active cases of the infection has been recorded at 4,423, it said.

The new fatalities — one each from Kerala and Karnataka — were reported in a span of 24 hours, according to the ministry’s data updated at 8 am. The number of daily cases had dropped to double-digits till December 5, but cases have again gone up after emergence of a new variant and cold weather conditions.

The daily numbers were in lakhs at the peak of the pandemic, which began in early 2020 and has seen more than 4.5 crore people getting infected and over 5.3 lakh deaths in about four years since then across the country. The number of people who have recuperated from the disease stands at over 4.4 crore with a national recovery rate of 98.81 per cent, according to the ministry’s website.

According to the website, 220.67 crore doses of Covid vaccines have so far been administered in the country.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Delhi reports 16 cases of COVID-19 sub-variant JN.1

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Delhi has reported 16 cases of COVID-19 sub-variant JN.1 with majority of the patients recovering in home isolation, officials said on Tuesday. The national capital had reported its first case of COVID-19 sub-variant JN.1 last week.

According to an official, reports of 19 samples sent for genome sequencing were received on Monday. Out of these, 15 samples were detected with JN.1 variant, two with XBB sub-variant and rest with other variants, the officials said.

“The first patient had got admitted to a hospital because she was scared but she only had mild symptoms. She was discharged within a few days. The 15 patients detected with JN.1 variant are under home isolation and have no discomfort. Four of them have recovered also,” said an official.

The official said that there was nothing to worry about. Earlier in the day, Delhi Health Minister Saurabh Bharadwaj said COVID-19 cases being reported recently are mild infections and that there was no reason to worry.

The situation in Delhi is under control and there was no huge rise in cases, Bharadwaj said.

“The information received about the disease so far from Delhi and neighbouring states has suggested that the cases are mild. Some people have a mild cough and cold, and some have a mild fever. People are recovering from the disease quickly. As of now, there is nothing to worry about,” he said.

A total of 312 cases of COVID-19 sub-variant JN.1 have been detected in the country so far, with about 47% of them recorded in Kerala, according to the INSACOG’s data updated on Tuesday.

Ten states and Union territories have so far detected the presence of the JN.1 sub-variant of the virus. They are Kerala (147), Goa (51), Gujarat (34), Maharashtra (26), Tamil Nadu (22), Delhi (16), Karnataka (eight), Rajasthan (five), Telangana (two) and Odisha (one), according to the Indian SARS-CoV-2 Genomics Consortium (INSACOG).

The INSACOG’s data showed 279 Covid cases recorded in the country in December had the presence of JN.1, while 33 such cases were detected in November.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India sees single-day rise of 529 Covid cases

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India recorded 529 fresh COVID-19 cases in a single day, while the country’s active infection count stood at 4,093, the health ministry said on Wednesday. Three new fatalities — two from Karnataka and one from Gujarat — were reported in a span of 24 hours, according to the ministry’s data updated at 8 am.

The number of daily cases had dropped to double-digits till December 5, but infections have again gone up after emergence of a new variant and cold weather conditions.

The daily numbers were in lakhs at the peak of the pandemic, which began in early 2020 and has seen more than 4.5 crore people getting infected and over 5.3 lakh deaths in about four years since then across the country.

The number of people who have recuperated from the disease stands at more than 4.4 crore with a national recovery rate of 98.81%, according to the ministry’s website. The case fatality rate stands at 1.19%.

According to the website, 220.67 crore doses of Covid vaccines have so far been administered in the country.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Poly Medicure targets 20-22% revenue growth in FY25 with contributions from new segments

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Delhi-based medical devices maker Poly Medicure expects revenue growth of around 20-22% in FY25 with contributions from two new segments — critical care and cardiology. Margin growth is expected to be around 25-27%.

Himanshu Baid, Managing Director of Poly Medicure said the recent investments in expanding manufacturing infrastructure will help keep up the momentum in revenue and margin growth over the next couple of years.

Baid said the market size in India for interventional cardiology products and critical care products which the company will soon launch, is around ₹1,000 crore each. But the bigger opportunity for the company is in the export market. Currently, around 70% of the company’s revenues are from exports.

The company expects to receive regulatory approvals for these devices for the European and other regulated markets in the next two years, but the exports to Southeast Asian markets to begin sooner, likely by end FY25.

Baid highlighted that these products are essential in intensive care units (ICUs), and there has been a noticeable increase in the percentage of ICUs, especially after the impact of COVID-19. Many hospitals, which were previously operating with around 10% ICU beds, now have an increased capacity ranging between 15-20%.

Also Read | Poly Medicure raises FY24 revenue growth guidance to 22-24%

Poly Medicure shares are among the big winners of 2023 surging a solid 60%. The company a market capitalisation of ₹13,838.05 crore.

For the entire interview, watch the accompanying video

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India reports 63 cases of subvariant JN.1, health officials monitoring situation

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A total of 63 cases of COVID-19 sub-variant JN.1 have been reported in India till Sunday, December 24, official sources said on Monday. This includes 34 cases from Goa, nine cases from Maharashtra, eight cases from Karnataka and six from Kerala, four from Tamil Nadu and two from Telangana, they added.

According to Union Health Ministry data, the country recorded a single-day rise of 628 new COVID-19 cases while the active caseload jumped to 4,054. The total fatalities were recorded at 5,33,334 (5.33 lakh) with one new death reported from Kerala in the previous 24 hours, the data updated at 8 am showed.

NITI Aayog member (Health) Dr V K Paul said last week that the scientific community in India is closely investigating the new Covid sub-variant and stressed the need for states to ramp up testing and strengthen their surveillance systems.

Even though the number of cases is rising and the JN.1 sub-variant has been detected in the country, there is no cause of immediate concern as 92% of those infected are opting for home-based treatment, indicating a mild illness, officials had said.

There is also no increase in hospitalisation rates and COVID-19 is an incidental finding in those hospitalised due to other medical conditions, they had said.

In a letter to the states and Union territories last week, Union Health Secretary Sudhansh Pant underlined the critical COVID-19 control-and-management strategies considering the upcoming festive season and advised them to put in place the requisite public health measures to minimise the risk of increase in the transmission of the disease.

The states have been urged to ensure effective compliance of the detailed operational guidelines for a revised Covid surveillance strategy shared by the Union Ministry of Health and Family Welfare. The states have been asked to monitor and report district-wise cases of Influenza-like Illness (ILI) and Severe Acute Respiratory Illness (SARI) from all health facilities regularly for an early detection of a rising trend of cases.

The country’s Covid case tally is currently at 4,50,09,248 (4.50 crore). The number of people who have recuperated from the disease has risen to 4,44,71,860 (4.44 crore) while the national recovery rate stands at 98.81%, according to the health ministry website.

The case fatality rate stands at 1.19%. According to the ministry website, 220.67 crore Covid vaccine doses have been administered.

The JN.1 (BA.2.86.1.1) sub-variant of Covid emerged in August in Luxembourg. It is a descendant of the BA.2.86 lineage (Pirola) of SARS COV2.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow