INFOSYS MARGINS

IT industry's competitive intensity to be at highest levels in FY25: HCLTech CEO C Vijayakumar

Despite a challenging economic environment, HCLTech has achieved remarkable annual growth and outpaced larger competitors. The third-largest software services firm, with annual revenues of $13.27 billion, reported growth that outpaced Tata Consultancy Services 4.1% and Infosys 1.4%. Smaller players such as Wipro and Tech Mahindra faced significant struggles.

Infosys to announce Q1 results on July 18

Infosys will flag off the first quarter earnings for FY25. It expects its constant currency revenue growth for FY25 to be around 1-3%. The operating margins are predicted to be anywhere between 20-22% in the current fiscal.

Ample growth opportunities for all IT services companies from a longer-term perspective: Sumit Pokharna

​What we have scanned and found out is that they expect the demand to improve in calendar year 2024 but definitely it will be below normalised level. Secondly, their priority is to upgrade the tech stack.

IT stocks plunge up to 5% on Monday after 8% rally last week. Know how experts view sector!

Nifty IT index fell 2.3% with Coforge and Persistent Systems as top losers, despite Nifty hitting a lifetime high. IT sector has seen recent positive returns but remains a laggard over the quarter.

Sandip Agarwal's 4 top bets from IT sector for near term

​I think now the attrition rates are under control. Margin should expand because margin is a direct factor of where your attrition is, utilisation is. So, I think the revenue growth I do not see will pick up very substantially immediately, because if at all the ECB rate cut has happened, now in US also we are expecting some cool off to happen on the rate front.

Rising employee productivity to boost IT cos in hard times

Top tier IT exporters see rising employee productivity amidst challenges like revenue deceleration, shrinking margins, and lower headcount in FY24.

Top IT companies focus on employee productivity amid demand uncertainties

Amid revenue deceleration, shrinking margins and lower headcount, a silver lining for the top tier IT exporters is the rising employee productivity aided by streamlining of human resources through meticulous bench management.

IT CEOs' salary in FY24; Wipro offers 85% variable pay

Happy Wednesday! Top bosses at some of the country’s leading IT firms took home enhanced salary packages last fiscal. More on this on today’s ETtech Morning Dispatch.

Wipro gives over 85% variable pay for Q4 FY24

IT services major Wipro paid its employees an average of more than 85% variable pay for the fourth quarter of FY24, several employees have told ET, on condition of anonymity.

Food delivery cos bet on existing users; Infosys CEO interview

Happy Tuesday! With user growth stagnating, Zomato and Swiggy are prodding existing customers to order more. This and more in today’s ETtech Morning Dispatch.

As macro climate changes, GenAI will also scale up: Infosys CEO Salil Parekh

In a wide-ranging interview with Sameer Ranjan Bakshi, Beena Parmar and Surabhi Agarwal, Salil Parekh, chief executive and managing director of Infosys, spoke of his plans to prepare the $18.6 billion software services giant — through its Topaz platform — for the GenAI-led transformation that will take root as global macro-economic concerns ease.

Slowdown hits Indian IT companies’ campus recruitments

The IT service business model, which relies on pyramid structure with its base constituting young and less expensive employees, has been shrinking. In FY24, both TCS and Infosys saw the share of young employees in their total headcount plunge to a five-year low and a decadal low, respectively.

Top two tech firms shed Gen Z flab, gain silver muscle

The share of Gen Z employees - or those aged 30 and under - fell by about 5 percentage points last fiscal at Bengaluru-based Infosys, and by over 2.5 percentage points at Mumbai-based TCS. The trend underscores a tepid IT hiring climate amid industry turbulence, which have impacted onboarding of young talent the most.

Amazon India gets funds; IT margins hit

Amazon has ploughed fresh funds in its Indian marketplace entity. This and more in today’s ETtech Top 5.

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.

Infosys Jefferies' only IT pick on growth visibility, valuations

Jefferies downgraded its ratings on LTI Mindtree and Coforge to underperform on the back of rising uncertainty in their growth and margin outlooks.

Sensex, Nifty end marginally higher; RIL limits upside

The 30-share BSE benchmark Sensex edged up 90 points or 0.12% to settle at 73,738 and the broader NSE Nifty rose 32 points or 0.14% to end at 22,368. Bharti Airtel, ITC, Infosys, SBI, Maruti, and Tata Motors were the top contributors to the Sensex.

Sustained deal momentum and margin improvement augur well for Wipro

Wipro’s net profit rose by 5.2% sequentially to Rs 2,834.6 crore in the March quarter, much faster than the analysts’ average estimate of 2.5% growth. It was driven by a 40 basis point improvement in the operating margin at 16.4%, again higher than the expectation of a 20 basis point expansion.

Why hasn’t Infosys upgraded margin guidance if TCVs are at record high? Sandip Agarwal asks

Sandip Agarwal asks: "Despite a strong TCV, why is the growth guidance so low? We are not able to connect the dots of what is pulling down growth so much and why they are projecting this kind of growth. In my view, this guidance and these numbers are on the lower side of what anyone would have been anticipating."

IT may see a muted Q4; rebound likely in FY25: experts

The third-quarter performance of Indian IT majors such as TCS, Infosys, HCLTech and Wipro did not inspire much confidence. In Q3, Tata Consultancy Services posted a 4% increase in revenue and a 2% expansion in profit, while Infosys reported a 7.3% drop in profit. Meanwhile, Wipro’s profit fell 12% and HCLTech’s grew 6.2%.

How much positivity in IT stocks is already priced in? Apurva Prasad answers

Apurva Prasad says s that the IT pack has experienced a positive movement in the last two months. However, he believes that a significant portion of the improved outlook is already priced into the market, with PE multiples increasing by 20-25%. Prasad emphasizes the importance of operational performance and highlights that many companies, including larger ones, have the potential for margin improvement.

In next 3-4 quarters, falling attrition may spring big surprise in IT cos’ margins: Sandip Agarwal

Sandip Agarwal says: “This quarter, the IT companies will show a slight beat in margin. In the next quarter, thereshould be a bigger beat in margin followed by even further better margins in the first half of FY25. We will have good margins to start with followed by good revenue growth.”

Infosys Q3 Results: PAT drops 7% YoY to Rs 6,106 cr; FY24 revenue guidance revised to 1.5% to 2%