TCS OPERATING MARGIN
Nomura turns bullish on Indian IT sector, highlights Infosys, Coforge as top picks
Nomura bullish on Indian IT sector with top picks Infosys and Coforge, upgrades ratings for Wipro and HCL Technologies. Anticipates GenAI adoption boosting cloud services demand.
Mid and small IT companies showed sustained improvement in revenue, profit share in March ’24 quarter
Small and medium sized IT companies continued to show year-on-year improvement in the share of aggregate revenue and profit of the sector in the March 2024 quarter though the extent of improvement has tapered down implying resilience from the top tier companies.
Ecommerce sellers count on cash-flow gains from GST cut
Recommendations by the GST council aim to benefit suppliers on online platforms and real money gaming firms through tax changes, including a reduction in tax collected at source for electronic commerce operators.
Q4 results: Stable costs boost India Inc. profits
Steady costs and firm domestic demand supported corporate performance in the March quarter.
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.
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.
Unpacking K Krithivasan's first year as TCS CEO
TCS CEO K Krithivasan completed a year in office this month. His term was marked by an unprecedented slowdown in tech demand. The veteran, however, has brought growth and stability for the bellwether. Under his leadership, TCS reached $29.1 billion in annual revenues in the year ending this March, growing at 4.1%.
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.
IT’s bench strength halves as slump-hit companies eye efficiencies
The bench strength at top Indian outsourcers has nearly halved of late, with higher utilisation and generative artificial intelligence (GenAI) driving efficiency in the $254-billion IT industry. Bench strength in the IT industry means full-time employees who are not assigned any active project.
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.
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.
Higher ability to withstand sudden headwinds: 5 largecap stocks with right mix of RoE & RoCE
There are two kinds of risk in equity markets, first the overall market or asset class risk. Second is individual risk. First risk is not under control of anyone, because it can hit the market due to any reason, right from any geopolitical uncertainty to any monetary event in any part of the world. Probably the first kind of risk got played recently with the flip flop of the US and development in the middle east. The second risk which is individual risk is about the choice of the stock which one buys. In equities after a point of time it is more important to manage individual risk than to take risk. In equities the risk is more in the short term, over longer term, it is not very high. One way to manage risk is that when valuations are high, move to companies which have strong and large balance sheets and have seen many economic cycles and have survived the slowdowns in the past.
Time to unlink size and agility: 6 not-so-large IT stocks operating in niche areas with upside potential of up to 53%
Over the years, there has been some change in how the street looks at IT stocks, but somehow, still there is a perception that large cap companies like TCS, Infy and Wipro, are the ones which give all the indication of what is happening in the IT space. But the reality has been very different. Especially in the last five years, since the time ML and cloud and other speciality segments have come in the software segment. There have been smaller companies which operate in specialized areas who have been able to show much stronger growth at a time when Infy and Wipro’s of the world are under pressure in terms of growth.
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."
Look at them with a different lens? 6 IT stocks operating in niche areas with upside potential of up to 34%
Over the years, there has been some change in how the street looks at IT stocks, but somehow, still there is a perception that large cap companies like TCS, Infy and Wipro, are the ones which give all the indication of what is happening in the IT space. The fact is that over the last decade so many segments and sub segments have emerged and along with the numbers of mid and small size companies have emerged in the IT space that deciding on IT space based on what is happening with TCS and infosys or wipro or any mega cap companies would be an incorrect thing to do. The fact is that while the name of the Indian IT sector can be divided into different segments, each of them has not become an industry itself. Infact if one looks at the stock performance, the street is gradually making a difference as the divergence in return is visible. Will this trend continue and these stocks chart their own course independent of what TCS and Infy are doing?
As Wipro gets a new CEO, a look at its woes in four data charts
The change of guard at Wipro is coming at a time when the IT major's operating margins are the lowest among its peers. And the change comes at a time when clients are in no mood to ramp up big budget transformation deals.
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.
Wipro Q3 Results: Operating margin beat, deal wins among 5 key takeaways from earnings card
The IT major has guided for -1.5% to 1% sequential growth in its IT services business revenue. This translates to a revenue of $2.62-$2.67 billion in the March quarter in constant currency terms. Most analysts had expected Wipro to give -1% to +1% growth in constant currency revenue.
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