Tag: IT Sector

Infosys Q3 net profit drops 30% to Rs 3,609 crore

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

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Information technology (IT) major, Infosys, on Friday posted 30 percent year-on-year (YoY) drop in consolidated net profit at Rs 3,609 crore for the third quarter.

The Bengaluru-based information technology (IT) outsourcing company had posted a net profit of Rs 5,129 crore in the corresponding period last fiscal.

Its revenue during the quarter under review stood at to Rs 21,400 crore, up 20.3 percent from Rs 17,794 crore in the year-ago period, the company said in a BSE filing.

The Infosys board has approved buyback of shares worth up to Rs 8,260 crore at maximum Rs 800 per share and has declared a special dividend of Rs 4 per share.

The company has revised upwards its FY2018-19 revenue guidance in constant currency to 8.5-9 per cent, it said.

“With increased client relevance, we saw double digit (10.1 per cent) year-on-year growth in Q3 on a constant currency basis,” Infosys chief executive officer and managing director Salil Parekh said.

He said the company also had another strong quarter in its digital business with 33.1 per cent growth and large deals at $1.57 billion, which gives it confidence entering 2019.

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

TCS Q3: These are the highlights of the December quarter earnings

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

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Tata Consultancy Services (TCS), India’s largest IT services company, on Thursday posted a 24 percent year-on-year increase in profit at Rs 8,105 crore for the quarter ended December.

But a miss in the margins took some sheen off the earnings.

These are the big takeaways from the company’s earnings:

The slip in margins was primarily due to cross currency headwinds and increased cost of doing business. ​The EBIT percent was at 25.6 percent compared with 26.5 percent a year ago and the estimated 27.6 percent.

Nonetheless, the company is on track to end the year with a double-digit growth.

Constant currency (fixed exchange rate that eliminates fluctuations when calculating financial performance figures) growth was at 1.8 percent quarter-on-quarter and at 12.1 percent year-on-year –  the highest in 14 quarters.

The thriving Banking, Financial Services and Insurance (BFSI) vertical continued to accelerate. The vertical grew at 8.6 percent year-on-year compared with 6.1 percent in the previous quarter (and 4.1 percent in the June quarter).

TCS had 45 $100 million clients compared with 44 in the previous quarter.

Digital is galloping. The vertical comprised 30.1 percent of revenue and grew 52.7 percent year-on-year. The deal pipeline entering the new year is strong, but digital momentum will be key.

The retail vertical grew 10.5 percent year-on-year despite a seasonally weak quarter.

Other quarter-on-quarter highlights: 

Dollar revenue was up 0.67 percent at $5,250 million compared with $5,215 million.

Rupee revenue grew to Rs 37,338 crore compared with Rs 36,854 crore.

EBIT was at Rs 9,564 crore compared with Rs 9,771 crore.

Profit after tax increased 2.5 percent at Rs 8,105 crore compared with Rs 7,901 crore.

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

TCS Q3 net profit jumps 24% YoY to Rs 8,105 crore

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

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India’s largest IT services firm, Tata Consultancy Services (TCS), on Thursday posted 24 percent year-on-year (YoY) rise in profit at Rs 8,105 crore for the third quarter.

The Mumbai-based information technology (IT) outsourcing company had posted a net profit of Rs 6,531 crore in the corresponding period last fiscal.

Its income from operations during the quarter under review stood at Rs 37,338 crore, up 20.8 percent from Rs 30,904 crore crore in the year-ago period, the company said in a BSE filing.

Operating margin for the quarter stood at 25.6 percent, an expansion of 0.4 percent YoY.

Digital accounted for 30.1 percent of the revenues, registering year-on-year growth of 52.7 percent.

The company has declared a dividend of Rs 4 per share.

In Q3, the company added 6,827 employees on a net basis. Total employee strength at the end of Q3 stood at 417,929 on a consolidated basis. The percentage of women in the workforce rose further to 35.8 percent, while the total number of nationalities represented grew to 151, the company said.

As on December 31,2018, TCS has applied for 4,354 patents, including 169 applied during the quarter and has been granted 855 patents.

Commenting on the Q3 performance, Rajesh Gopinathan, chief executive officer and managing director, said, “We are wrapping up 2018 with a strong revenue growth of 12.1 percent in the December quarter, which is the highest in 14 quarters, with continued growth acceleration in key verticals and across all geographies.”

“The strong client metrics, industry leading growth in digital services, a very strong order book and deal pipeline are all validations that customers recognize our differentiated capabilities and are picking us for their growth and transformation programs,” he added.

The company’s chief financial officer V Ramakrishnan said despite headwinds from the rupee volatility against various currencies, and the higher cost of doing business in some major markets, TCS’ operating margins have been resilient.

“We remain focused on driving rigour in our operations, generating strong cash flows and steering profitability back to our preferred range, while continuing to invest strongly for future growth,” he added.

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

Tech Mahindra’s focus this year will be on digital transformation initiatives, says CFO Bhat

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

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The IT and digital transformation industry is witnessing exponential growth with companies betting big on the 5G opportunity in India.

To talk about what kind of investments Tech Mahindra is making and what is the outlook going ahead in terms of new technologies, CNBC-TV18 spoke with Manoj Bhat, CFO of the company.

Looking forward into 2019, Bhat said, “The focus will be on digital transformation initiatives that are closer to the customers.”

“Moreover, as of now, there has been no impact on demand or growth for 2019 in terms of customers budgets and the various initiatives they are perceiving in digital,” said Bhat.

“So, the company maintains the guidance of mid-single-digit growth in communications and 8-10 percent in enterprise for next year,” said Bhat, adding that it is based on current visibility.

With regards to 5G, he said,”It is going to be a huge opportunity for the industry across enterprise verticals. Customers are moderninsing IT to be ready for 5G and network virtualisation,” he said, adding that the company has won couple of deals for IT modernization in the last couple of quarters.

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

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

LIVE: PM Modi launches ‘Main Nahin, Hum’ portal and App during interaction with IT, electronic manufacturing professionals

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

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PM @narendramodi is speaking at a town hall programme with IT professionals & tech enthusiasts #Self4Society https://t.co/7EF24IC63Q

— CNBC-TV18 (@CNBCTV18Live) October 24, 2018

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

Weakening rupee is credit negative for Indian corporates, but effects limited: Moody’s

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

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A sustained weakening of the rupee would be credit negative for its rated Indian companies, particularly those that generate revenue in rupees but rely on US dollar debt to fund their operations, according to a report by Moody’s Investors Service.

Indian rupee opened at fresh record low against the US dollar on Monday as concerns over rising crude oil prices and trade war tensions continued to hurt investor sentiment.

At 11:20 AM, the rupee was trading at 72.47 a dollar, down 37 paise, from its Friday’s close of 72.10. So far this year, the rupee has weakened 11.5 percent.

According to Moody’s report, the fall in rupee has limited negative credit implications for rated 24 Indian corporates, which include those in the IT, oil and gas, chemicals, automobiles, commodities, steel, and real estate development sectors.

Of the 24 Moody’s rated Indian-based corporates, 12 generate most of their revenue in US dollars or have contracts priced in US dollars, providing a natural hedge, and thus limiting the effect a weakening in the rupee could have on their cash flows, the report said.

“Furthermore, the impact of the rupee’s weakening will be diverse and will also depend on issues such as a particular corporate’s reliance on exports, its cost base, and its exposure to pricing on international markets,” said Annalisa DiChiara, a Moody’s vice president and senior credit officer, in the report.

Moody’s comments follow its annual survey of the US dollar debt exposures of South and Southeast Asian high-yield companies published in June 2018, which considered the effects of a weakening of the rupee to around 78 to the US dollar.

Seven of the Moody’s-rated oil and gas companies also fall under the “naturally hedged” category as crude oil, natural gas, petroleum products and petrochemicals are all sold at US dollar-linked prices in India.

The seven companies include HPCL-Mittal Energy Limited, Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Ltd, Indian Oil Corporation Ltd, Oil and Natural Gas Corporation Ltd, Oil India Limited and Reliance Industries Limited.

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

HCL Technologies aims to overtake Infosys in the next five years, says report

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

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IT major HCL Technologies is looking to overtake Infosys in terms of revenue in the next five years through acquisitions and intellectual property (IP) partnerships, Business Standard reported.

“They have a clear eye on overtaking Infosys in the next five years. The roadmap is that the business should grow 8-10 percent organically and 15-20 percent through the inorganic route, which all companies enable after they reach a double-digit growth” sources were quoted as saying in the report.

The company has a turnover target of at least $15 billion by 2022-2023, which can mean a compound annual growth rate of around 14 percent, sources added.

At the end of the previous financial year, the revenue gap between the two companies was $3.1 billion.

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

Infosys falls nearly 4% after CFO M D Ranganath’s exit

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

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Shares of India’s second largest software services exporter, Infosys Ltd, fell as much as 3.97 percent to Rs 1,373.5, in biggest percent loss since July 5 after the board accepted resignation of chief financial officer (CFO) M.D. Ranganath on Saturday.

Ranganath will continue as CFO till November 16 this year, Infosys said. Ranganath’s resignation comes exactly a year after former chief executive Vishal Sikka quit following a feud with founders.

“Concerns around exits from the senior management team will remain an overhang,” Morgan Stanley wrote, downgrading the stock to ‘equal-weight’ from ‘overweight’.

“In the short term, the market could react negatively, particularly given strong performance YTD. However, in the medium/long-term, we expect stock performance will depend on growth,” Citi said, rating the stock ‘neutral’ with a price target of Rs 1,315.

25 of 35 brokerages rate the stock “buy” or higher, eight “hold” and three “sell” or lower; their median price target Rs 1,411.

Up to Friday’s close, stock had risen 41.2 percent since August 17, after Sikka quit.

Shares traded at Rs 1387.15, down by 3.02 percent, Rs 43.20 on the NSE at 1 pm. Nifty IT traded lower by 0.65 percent.

Also, catch all the action and updates in our Market Live blog.

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