Tag: TCS

Tata Consultancy Services COO N Ganapathy Subramaniam to retire with effect from May 20

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

Listen to the Article (6 Minutes)

Tata Consultancy Services (TCS) on Sunday, May 19, announced that the company’s Chief Operating Officer and Executive Director, N Ganapathy Subramaniam will retire by the end of May 19.

“We hereby inform you that the term of office of Mr N Ganapathy Subramaniam, Chief Operating Officer and Executive Director (COO & ED) of the Company, ends on May 19, 2024. Accordingly, he ceases to be COO & ED of the Company with effect from May 20, 2024,” TCS said in an exchange filing.

The Tata Group company on April 12 announced that the Chief Operating Officer (COO) and Executive Director would retire in May. “He’s (Subramaniam) been doing many things and no single individual can replace him, our current thinking is, our leadership team, we are re-distributing the work he’s been doing and we don’t intend to appoint a new COO,” TCS CEO K Krithivasan had said in the post-earnings presser.

Also Read: Lupin’s Somerset facility gets Form-483 with six observations after US FDA inspection

Subramaniam assumed the position of COO in February 2017 and has been associated with TCS since 1982. He also served as the Additional Director and Chairman of Tata Elxsi Limited since November 2014 and the Additional Director (Non-Independent; Non-Executive) of Tata Communications Limited since December 2021.

Before taking over as the COO, he also served as the Executive Vice President, Head of TCS Financial Solutions, Products and Platform businesses, and other leadership positions across Client Delivery, Business Development, integration of businesses and Product Development.

Also Read: India’s largest steelmaker announces its second-best dividend in FY24

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

TCS chairman Chandra says these mega trends are shaping future priorities

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

Listen to the Article (6 Minutes)

In the latest TCS annual report, Chairman N Chandrasekaran (also called Chandra) outlined significant mega trends influencing business priorities, emphasising the pivotal role of Artificial Intelligence (AI), new energy solutions, supply chain resilience, and talent development.

Chandra said GenAI technologies would impact almost every sector and country. With enterprises already heavily investing in cloud infrastructure and data processing power, GenAI is poised to revolutionise productivity and drive unprecedented outcomes, he mentioned in the report.

In the report, Chandra wrote: “Business leaders want to use GenAI, but CIOs are grappling with how to best use it and how to manage the associated risks and investments.” He added that TCS clients who are early adopters have begun experimentation with various use cases of GenAI, with the company’s help.

“Advanced manufacturing, new technologies like AI, new energy, data and business models are changing the future of work and are compelling new skillsets to be built for the future,” he highlighted.

Chandra also stressed the paramount importance of secure networks as data assumes a central role in business operations. “Secure networks power everything from predictive analytics and AI to personalised customer experiences. As the value of data increases, along with concerns of privacy and protection, it has rightly become a focal point of security for all businesses,” he wrote.

Chandra highlighted the accelerating global energy transition, with businesses increasingly committing to sustainability. Noting that the energy requirement of our fast-changing world is enormous, he said the key was to lower the cost of energy while also transitioning to renewables. This transition, he emphasised, requires large investments in technology, electric mobility, renewable power, hydrogen and sustainable fuel.

The TCS annual report also mentions the company is investing in research on green hydrogen and biofuels, among others.

Addressing geopolitical challenges, Chandra noted the evolution of supply chain dynamics, with companies recalibrating for both resilience and efficiency. India, he emphasised, is assuming a pivotal role in the emerging landscape of advanced manufacturing.

Reflecting on the macroeconomic landscape, Chandra observed signs of stabilisation following the pandemic-induced disruptions.

“After the pandemic, which resulted in supply chain shocks, there was an economic slowdown, especially in developed markets. While initial signs of stability began to emerge, the military conflicts have intensified this year and continue to impact the global supply chains. After two years of recessionary fears, persistently high inflation, and unprecedented monetary tightening, the global macro-outlook looks relatively better now with improving growth, disinflation, and monetary easing in sight,” he wrote.

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

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)

Listen to the Article (6 Minutes)

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

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

Income tax calendar for May 2024 — Full list of activities you should complete this month

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

Listen to the Article (6 Minutes)

Income tax planning helps in reducing tax liabilities and enhancing savings. There are several tax-related tasks that individuals should undertake in May 2024 to ensure comprehensive planning and mitigate potential consequences.

The income tax department has published a comprehensive tax calendar on its website, outlining the due dates for the month, which people should be aware of.

Let’s take a look at the due dates:

May 7, 2024

​This is the due date for deposit of tax deducted/collected for the month of April, 2024.

However, all sum deducted/collected by an office of the government shall be paid to the credit of the central government on the same day where tax is paid without production of an income tax challan.

May 15

This is the due date for issue of TDS certificate for tax deducted under section 194-IA, 194-IB, 194M and 194S in the month of March, 2024.

​Additionally, it is the deadline for furnishing of form 24G by an office of the government where TDS/TCS for the month of April, 2024 has been paid without the production of a challan​​

​Also, quarterly statement of TCS should be deposited for the quarter ending March 31, 2024 by this date.

This is even the due date for furnishing statement in Form no. 3BB by a stock exchange in respect of transactions in which client codes have been modified after registering in the system for the month of April, 2024

May 30

​Submission of a statement (in Form No. 49C) by non-resident having a liaison office in India for the financial year 2023-24 should be done by May 30.

This is the due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IA, 194M, 194-IB and 194S in the month of April, 2024.

​Issue of TCS certificates for the fourth quarter of the financial year 2023-24​ should also be done by May 30.

May 31

This is the deadline to submit quarterly statement of TDS deposited for the quarter ending March 31, 2024.

Also, return of tax deduction from contributions paid by the trustees of an approved superannuation fund​ should be filed by May 31.

Additionally, this is the due date for furnishing of statement of financial transaction (in Form No. 61A) as required to be furnished under sub-section (1) of section 285BA of the Act respect for financial year 2023-24

The application for allotment of PAN should be done by this date only in case of non-individual resident person, which enters into a financial transaction of ₹2.5 lakh or more during FY 2023-24 and hasn’t been allotted any PAN​

​​Statement in Form no. 10 should be furnished to accumulate income for future application under section 10(21) or section 11(1) (if the assessee is required to submit return of income on or before July 31, 2024)

​​Statement of donation in Form 10BD to be furnished by reporting person under section 80G(5)(iii) or section section 35(1A)(i) in respect of the financial year 2023-24​

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

Software companies put up their worst show since FY18

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

Listen to the Article (6 Minutes)

The combined net profit of the country’s largest information-technology firms grew at the slowest pace in six years after clients across the globe cut back their discretionary spending due to an uncertain business environment. What is more worrying is that the sector is not out of the woods yet as most of them have lowered their margin aspiration for the next year as well.

Six software firms which form part of the Nifty50 Index saw their aggregate earnings increase by 4.1% to ₹1.06 lakh crore in FY24. That compares with the 6.3% rise reported in the previous year. The growth in the bottom line for the year was the lowest after 2018 when they together reported a 3.5% rise, according to data collated by CNBC-TV18. In fact, the net profit has been growing at a single digit over the last seven years, except FY19 and FY22 in which their aggregate profit surged by 13% and 18%, respectively.

While the net profit of Wipro and Tech Mahindra continued to decline for the second year in a row, the growth has almost halved for HCL Technologies. Similarly, Tata Consultancy Services (TCS) reported 9% growth in FY24 against an increase of 10% in FY23. The two largest IT firms — TCS and Infosys — account for 68% of the aggregate profit and close to 60% of the total revenue of the sample.

Also Read: Synopsys to buy engineering software firm Ansys in $35 billion deal

Further, the revenue of these IT companies increased by 5% in FY24 to ₹6.8 lakh crore. In contrast, the six companies — TCS, Infosys, HCL Technologies, Wipro, Tech Mahindra and LTIMindtree — together had reported 19% growth in their top-line in FY23.

Vetri Subramaniam, Chief Investment Officer at UTI AMC, argues that the global picture is more tricky as there has been a very big shift in the kind of expectations for interest rate policy by the US Federal Reserve. According to him, one should watch out for management commentaries of these companies with respect to their growth strategy and hiring. “Tech capex spending in the US hopefully signals better times for the Indian IT sector,” said Subramaniam.

Even though TCS expects the current fiscal year will be better than the previous one, the second-largest outsourcing provider — Infosys has cut its FY25 revenue target to 1 % to 3% on a constant-currency basis. That was a revision from its earlier guidance of 4% to 7% a year ago due to prevailing weak demand in the sector.

Also Read: Alphabet in talks to acquire marketing software firm HubSpot

The gauge for IT stocks — the Nifty IT index has declined as much as 5.2% so far in 2024, against 3.2% gains generated by the benchmark Nifty50 during the same period.

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

TCS employees with less than 60% office attendance won’t receive variable pay

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

Listen to the Article (6 Minutes)

India’s largest IT services giant Tata Consultancy Services (TCS) has tightened its attendance policy and announced that employees with less than 60% office attendance won’t receive variable pay, sources told CNBC-TV18 on April 22.

As per the updated HR policy of TCS accessed by CNBC-TV18, employees who have office attendance above 60% but less than 75%, bonus will be paid at 50%.

Bonus payment will be 70% for employees with office attendance above 75% but less than 85% whereas those who have more than 85% attendance will get 100% bonus payment.

In October 2023, TCS ended its hybrid working policy and in an internal communication sent in mid-September said the company had mandated that its workforce should attend office for five days in a week starting October 1, 2023. Until then, employees were required to be in the office for only three days a week.

Since then the firm has been reiterating its stance in each quarter and has been pushing employees to be back in office to ensure higher productivity. In its FY23 annual report, TCS highlighted that more than half of its workforce was hired after March 2020, and new employees benefit from physical interactions with senior colleagues and leaders to acculturate and learn from their behaviours and ways of thinking.

“Without those interactions, employee engagement as well as acculturation got badly impacted. All these factors led us to gradually bring back people to our offices during the year,” the company said.

In January this year, TCS’ new CEO and MD K Krithivasan revealed that approximately 65% of TCS associates were attending the office 3-5 days a week, just a quarter after the implementation of the policy

Following the January to March 2024 quarterly results as well, Milind Lakkad, Chief HR Officer, said employees returning to the office, among other factors, has fostered a vibrant atmosphere in the company’s delivery centres and boosted the morale of associates.

In an interaction with CNBC-TV18 in February this year, Krithivasan said, that while Zoom and Team are very efficient mediums, the importance of informal conversations or the chit-chat at the office is often overlooked.

“The second thing we missed is that, at TCS, values are very important to us. How do we impart value to an associate who has not even come to the office once? In fact, in TCS, about 30 to 40% of the associates joined in the last two to three years, and in the first two years, they have not even come to work. If you don’t even come to the office, what is the value that you stand for?”

The third factor is, he said, that an organisation enables a lot of training and opportunities but the most important learning comes from seeing how mentors and seniors behave in a given situation and getting to know the best way to handle a client situation.

This he believes cannot be replaced by any amount of training, one can only understand that by observing continuously.

“What the rest of the team does is the maximum value we get. And by saying I will be flexible—I will do two days a week or whenever I like—you lose out a lot. Eventually, we believe in what TCS stands for what we all value and want to give to our customers. It is important for associates to be there every day.”

Working from home or in hybrid mode is not the right way for an individual to develop their career, he said.

Reflecting on the scenario at a time when appraisals are due across most companies, Ankit Agarwala, Managing Director of global recruitment agency Michael Page, earlier this month said that employees who work from the office more regularly stand the chance for a better appraisal than those who work from home or do not visit as often.

“Most organisations prefer people working in offices. The ability to ask for a lot of work from more or hybrid is less today than two years back. Most organisations either work from the office or offer a hybrid mode of working. But even in hybrid, they want you ideally in the city of work. So those cases where people are in remote settings, they have declined,” he told CNBC-TV18.

(With inputs from Yoosef K)

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

TCS, Infosys and Wipro employee count declines by more than 13,300 in three months

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

Listen to the Article (6 Minutes)

Hiring at India’s top IT services companies has been moderating for the past two years. But, in the 2023-24 fiscal year, net hiring remained in the negative territory through all four quarters (barring one exception) at Tata Consultancy Services (TCS), Infosys and Wipro.

TCS, Infosys and Wipro saw a net reduction of 13,362 employees from January to March 2024. This, however, is still lower than the net loss of 16254, 18914 and 15229 staffers in the preceding three quarters of the financial year, respectively.

Overall, the three IT services giants have seen their workforce shrink by 63,759 employees in FY24.

At TCS, India’s largest IT services company by revenue and market cap, saw a net reduction of 1,759 employees in the January to March 2024 quarter, which takes the total workforce at the end of the 2023-24 fiscal to 601,546 — the lowest in the last two years.

At the end of FY23, outgoing TCS CEO Rajesh Gopinath had said the IT bellwether has been and will continue “disciplined” headcount addition in the coming quarters. Post that, only in the first quarter of FY24, the company saw a net addition of 521 employees whereas in the remaining three quarters, the number has remained negative.

A year after what Gopinath said, Samir Seksaria, Chief Financial Officer, after the fourth quarter earnings of FY 2024 said, “Our disciplined approach to operations has helped us expand our industry-leading margins. In a challenging environment, we persisted with our long-term investments in workforce reskilling, research and innovation. We will continue to drive efficiencies and competitiveness to capture opportunities for growth with profitability.”

At the same time, Chief Human Resources Officer (CHRO) Milind Lakkad explained the changing role of developers at firms like TCS. “At a basic level, you will always need programmers but a developer’s role will change. There will be an AI copilot which will work with you…it is now on the person to get the job done by the AI copilot and how. This role change is being reimagined at TCS and in the industry.”

Also Read: TCS explains the changing role of developers amid AI adoption

When asked how many people TCS would have hired if not for AI and other new technologies, Lakkad said it was too early to say that.

Jayesh Sanghrajka, CFO of Infosys, said the firm’s hiring model has changed significantly in the last few years. “We are at 82% utilisation and there is headroom for growth there; 85% is our comfortable level.”

This is the second reporting quarter after Infosys said it won’t hire fresh talent from campuses in FY24 since it still has a “significant fresher bench” while there is a decline in demand in key markets like the US.

Wipro’s new MD and CEO Srini Pallia said that the financial year 2024 was a challenging year for the industry and the macroeconomic environment remains uncertain. “However, I am optimistic about the opportunities that lie ahead.” He also clarified that the company will honour its earlier made offers before it makes fresh offers.

When will IT hiring return to normal?

Before the earnings season kicked off, recruitment firm Teamlease’s CFO Ramani Dathi asked if hiring in the information technology space was back to normal.

Fresh hiring at entry and mid-level at IT companies hasn’t started yet. Most of the new hires are only replacements of people who have exited.

A pullback in discretionary spending amid a global slowdown coupled with the progress in artificial intelligence (AI) has led to muted demand for Indian IT services over the past year or so.

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

Dean Kim sees next Nifty support at 2% below current levels

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

Listen to the Article (6 Minutes)

Dean Kim, Head of Global Research Product, William O’Neil + Co. predicts Nifty’s next crucial support level at its 100 day moving average (DMA), which is about 2% below the current level of 22,125.

The resistance is at 21-DMA, which is 1% higher than current levels, he told CNBC-TV18.

While Kim remains constructive on India, he has downgraded Japan and South Korea.

“All the other major Asian countries are under pressure including India. But at least in India, you are finding some support at the 50-DMA,” he added.

Among sectoral bets, Kim sees a lot of interesting names in basic material, and capital equipment.

“I am looking at BASF, Solar Industries, Steel Authority of India Ltd (SAIL), Zen Technologies and so on,” he said.

Also Read | Vodafone Idea CEO outlines subscriber retention strategies and more | Q&A

Auto equipment makers Sona BLW Precision, Shriram Pistons and Rings, Indo Count, Finolex Industries, and some select financial names like Muthoot Finance, Central Depository Services (CDSL) and PFC are also looking attractive from an early-stage breakout, he added.

He believes in large-cap tech names, one may stay with Tata Consultancy Services (TCS) versus Infosys at the moment.

“TCS is consolidating for the moment, so maybe wait for a breakout from the base. Infosys, on the other hand, looks fairly vulnerable. It is below the 200-DMA and looks like it must go lower, so I would be careful with Infosys,” he said.

Also Read | Trade Setup for April 18: Midcaps, Smallcaps offer some hope as Nifty grinds lower

Infosys will announce its results for the January to March 2024 quarter on April 18 after its peer TCS kicked off the Nifty 50 earnings last week.

A CNBC-TV18 poll of analysts suggests that India’s second-largest IT services company is likely to witness a revenue decline for the second quarter in a row while margin and profit shall increase marginally.

The guidance it gives for the 2024-25 fiscal year will be key to track.

For more, watch the accompanying video

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

Andrew Holland says current market dip presents a good entry opportunity

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

Listen to the Article (6 Minutes)

Andrew Holland, Chief Executive Officer of Avendus Alternate Strategies, does not see the minor dips in market as an overly negative sign. In fact, they could present good buying opportunities.

“It is a good time to dip back into the market. If you like the themes that you want to play for the next two to three years, these are the opportunities you get and continue to deploy money at this point,” he added.

Holland also shared his view on metals after the new US and UK sanctions that banned deliveries of any Russian supplies produced after midnight on Friday,

“Metals have performed very well and I think that will continue, particularly now that there’s sanctions going against Russia going forward. And we’ll see what the London Metal Exchange (LME) says. But that’s good for the likes of copper and aluminium going forward. The way to play it would be more aluminium, copper versus steel at this point,” he says.

Aluminium and nickel surged on the LME as traders responded to new US and UK sanctions.

The US and the UK imposed new restrictions on trading Russian aluminium, copper and nickel that will reverberate across global metal markets, in the latest bid to curb President Vladimir Putin’s ability to fund his war machine.

The rules prohibit the delivery of new supplies from Russia to the London Metal Exchange—where the global benchmark prices are set—as well as to the Chicago Mercantile Exchange.

Discussing the first January-March 2024 quarterly result, Holland said Tata Consultancy Services‘ (TCS) results were good when seen against the headwinds that the company were facing.

He sees a bottoming out here for the IT sector. “If TCS is a bellwether of what we can expect from other companies, I think there is still more interest towards this sector,” he said.

Also Read | K Krithivasan of TCS expects margins to sustain at current levels

In terms of the themes to watch out for post the general election 2024, he believes it is not going to change.

“Defence spending, renewable energy, railways, infrastructure – those are the big spending, the government’s going to do, and that has multiplier effects across many different industries,” he noted.

He is also positive on other themes such as premiumisation in the beverage market, leisure in terms of hotels and airlines, and the electronic manufacturing sector.

These sectors, he believes, have long runways of growth over the next two to three years. So the government is likely to enhance this and help in terms of spending on infrastructure, tourism, or the electronic manufacturing sector, in terms of production linked incentives (PLIs).

For more, watch the accompanying video

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

HDFC Securities assigns ‘add’ rating to Infosys, TCS, and LTIMindtree

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

Listen to the Article (6 Minutes)

Apurva Prasad of HDFC Securities has an ‘add’ rating for Tata Consultancy Services (TCS), Infosys, and LTIMindtree from the top-tier IT companies.

However, he recommends reducing holdings in Wipro.

TCS, he believes, has more potential for growth compared to Infosys.

TCS reported earning before interest and tax (EBIT) margin for the January-March 2024 quarter, its highest in three years. Its quarterly results after market hours on April 12.

Deal wins, at $13.2 billion during the quarter, were also a record.

Prasad says, “We remain positive, it has been our top pick in IT. Margins are positive, ahead of estimates and that is the key. On the deal side, also, that gives greater visibility on the acceleration for FY25.”

Brokerage firm JPMorgan has also called TCS a “cross-cycle champion” that will benefit from cost takeout deals in the short term and discretionary digital transformation deals in the medium term.

Also Read | TCS or Infosys: Ace investor Manish Chokhani loves this tech stock — here’s why

Cost takeout deals refer to deals that eliminate unnecessary expenses from a business through strategic planning.

Also Read | TCS Q4 Results: JPMorgan upgrades, most others remain cautious but bullish on near-term outlook

Goldman Sachs believes the quarterly performance from TCS is increasing the probability of the company reporting double-digit earnings growth in the current financial year (FY25).

It maintained its 8% revenue growth projection for TCS in the current financial year, compared to the 3.4% that it reported in the previous financial year.

For more details, watch the accompanying video

Catch all the latest updates from the stock market here

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