HCLTECH WAGE
Q-comm audits; modest Q1 for IT firms
Happy Wednesday! Due to recent hygiene lapses by quick commerce, the government has intensified surprise inspections of their warehouses. This and more in today’s ETtech Morning Dispatch.
Indian software sector earnings will remain modest in Q1: here’s why
Infosys and LTIMindtree are expected to lead a modest increase in average growth for Indian software service providers in the first quarter of FY25. However, previous top performers, Tata Consultancy Services (TCS) and HCLTech, may see pressure on profits and margins as they work to reignite growth.
Forbes 30 Under 30: Statiq founders Akshit Bansal, Raghav Arora & TDC founder Bhagya Shree Jain find a spot
Forbes has released its ninth edition of the "30 Under 30 Asia" list, celebrating 300 young entrepreneurs, leaders, and trailblazers under 30 driving innovation and transforming industries across the Asia-Pacific region. The list includes India's Akshit Bansal and Raghav Arora, co-founders of Statiq, and Bhagya Shree Jain, Founder of The Disposal Company. Sharify Services, founded by Bansal and Arora, offers a nationwide network of charging stations for electric vehicles.
IT sweats to eke out margins on pricing squeeze, staff costs
Indian outsourcing companies face a margin squeeze in FY24 due to a triple threat: aggressive deal pricing, rising employee costs, and the pressure to boost revenue despite tight global budgets. Notably, Tata Consultancy Services (TCS), the industry leader, seems to be the only exception.
HCLTech bucks trend again, headcount rises by 2,725 employees
For the full year as well, Noida-headquartered HCLTech added 1,537 employees from overall headcount of 225,944 in March end 2023. Similarly in FY23, HCLTech’s headcount had shown an increase by 3,674 employees.
HCL Tech Q4 Preview: Revenue may rise, but PAT seen declining; all eyes on FY25 guidance
The IT major projected constant currency revenue growth of 5.0-5.5% in FY24, compared to 5-6% guided earlier. This includes revenue recognition from the recently acquired German automotive engineering solutions provider ASAP Holding.
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Tech companies plug into India's smaller cities for talent
The trend of Indian IT companies relocating to smaller cities is gaining momentum, driven by factors such as cost efficiency, government incentives, and the availability of talent. Workers like B. Ramachandran are choosing to live in places like Madurai over major tech hubs like Bengaluru and Chennai, citing reasons such as familial ties and lower living costs.
Top four IT firms report 50,000 fall in headcount over last year
Over the year, the headcount at India’s largest software services firm, TCS, dropped by 10,669. Infosys reported a 24,182 reduction, while Wipro posted a 18,510 fall. At HCLTech, the number increased by 2,486
HCLTech Q3 results preview: Revenue to grow better than peers; company may retain FY24 guidance
The company is seen reporting a nearly 5% sequential rise in consolidated revenue to Rs 27,959.40 cr, and net profit is expected to increase by nearly 7% to Rs 4,085 cr, according to the average of estimates given by 11 brokerage firms.
IT stares at slowest quarterly revenue growth in a decade
The third-quarter results season will begin with TCS and Infosys announcing their results on January 11, followed by HCLTech and Wipro on January 12. The focus this quarter will be the commentary on the demand environment and 2024 budgets.
HCLTech may not offer wage hikes to middle and senior-level staff in FY24
The classification of E0 – E2 employees range from freshers to technical leaders and E3 – E6 employee band are those with mid-level positions ranging starting from project managers up to vice presidents. E7 and above are the senior-level employees.
Stars of Indian IT companies dim amid challenging demand situation
A spate of geopolitical conflicts and macro-economic concerns have combined to dent the demand for tech services, putting Indian IT majors on the edge for FY24.
Bleak days ahead for IT firms as macro trends crimp spending; and other top, tech stories this week
Reluctance by clients to go for large spends on digital transformation over the past few quarters has taken a toll on big IT firms. Subdued macroeconomic trends have meant cutting down on discretionary spending and projects that do not immediately require investments.
LTTS Q2 results: Net profit up 5.2%, revenue up 4.6% YoY
In line with larger peers, Infosys and HCLTech, the company has also slashed its revenue growth guidance for the fiscal from 20% to 17.5-18.5%, due to “delayed decision making”.
Infosys, HCLTech report Q2 profits; Groww becomes India’s largest stockbroker
Indian IT majors Infosys and HCLTech reported profits for the second quarter of FY24, despite numerous headwinds plaguing the sector. This and more in today’s ETtech Top 5.
Infosys headcount drops by 7,530 in Q2, to roll out hikes from November 1
The company also said it has a significant fresher bench and does not see a need to visit campuses this year as of now. Infosys reported a decline of 6,940 last quarter as the company slowed down hiring.
Indian IT companies seen logging muted sequential growth in Q2 amid sustained macro overhang
The big earnings week for tech heavyweights is up ahead, with Tata Consultancy Services (TCS) scheduled to announce its results on October 11, and both Infosys and HCL Technologies on October 12. Wipro is slated to declare its Q2FY24 results next week, on October 18.
Indian techies may be in for a long wait as IT firms defer hikes
Infosys and HCLTech have chosen not to implement raises, while Wipro has postponed its announcement to the third quarter. Tech Mahindra has granted increments to junior and mid-level employees but deferred them for senior roles. TCS, on the other hand, has given an average hike of 6% to 8%.
Nil to 1% hikes for LTIMindtree employees after months of delay
ET could not independently verify the share of the employee base that received such hikes but sources confirmed that a majority of junior to mid-level employees have received similar hikes.
IT firms eye fixed price projects to improve margins
Fixed-price projects allow better cost control and a greater ability to introduce automation in projects and expand margins. By contrast, ‘time and material’ control are directly linked to the number of people hard-locked to billable projects.
Why HCLTech is confident about meeting guidance despite 1% decline in Q1 revenue
“I do not think we will grow without adding any headcount. There will be some addition of headcount to support the growth because the ask rate for the next three quarters are quite high. So, there will be headcount addition,” says HCLTech CEO &B MD C Vijayakumar.
TCS, HCLTech Q1 results today: Here’s what you can expect
Analysts will be watching for commentary on demand in key markets like the UK and US apart from further signs of deal rampdowns or cancellations.
IT companies to log muted Q1 as macro woes persist; recovery may be gradual, say analysts
As tech companies head into Q1 earnings season this week, experts will also be keeping a close watch on any management commentary on the revision of the growth outlook for FY24, the spread of demand deterioration beyond BFSI (banking, financial services and insurance), hi-tech, telecom and retail verticals, net hiring, project ramp downs and pricing pressures, as key monitorables.
Q1 IT preview: Weak macros signal dull quarter for IT, firms may narrow guidance
India's top four information technology firms are expected to post only a marginal increase sequentially in fiscal first-quarter revenue in constant currency, as weakness in the banking and financial services (BFS) sector and persistently high interest rates in Europe and the US will weigh on their results, analysts said.
Employee cost proportion rises for large IT companies
TCS reported a sequential revenue increase of only 0.6% in constant currency, and the employee cost as a percentage of the revenue went up sequentially from 55.8% to 56.9%.
Cloud services wage price war as startups cut costs; wary IT firms may halve hiring of engineers
Amid the ongoing funding crunch, Indian startups are cutting their spends on cloud storage and renegotiating contracts with service providers like Amazon’s AWS.
IT firms need pricing improvement to ease margin woes: experts
Analysts see minimum room for improved utilisation and automation to impact the margin growth.
Efficiency-focused deals to help offset Europe delays: HCLTech CEO
Utilisation and realisation, and pricing benefits via automation to drive margins: HCLTech CEO
Downturn: Indian IT firms brace for a chilling winter this year
Though India’s top software services providers reported better-than-expected numbers last week, there are dark clouds on the horizon as an energy crisis in Europe and rising inflation in the United States threaten to disrupt the macroeconomic situation.
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