TECHNOLOGY SPENDING
HCLTech Q1 net profit up 6.8% at Rs 4,257 crore; beats estimates
HCLTech's profit rose 6.8% to Rs 4,257 crore, driven by $70 million non-core income. EBIT, revenue declined. TCS earnings boosted stocks. CEO Vijayakumar noted Q2 State Street impact, steady FY25 guidance. Dividend declared. Headcount fell by 8,080, Q3 margins to improve. $1.96 billion bookings, 200 GenAI concepts. CFO Prateek Aggarwal cited robust cash flow. Shares closed at Rs 1560.40.
Space startups funding continues to recover as investors bet on government spending
Space startups secured $2.41 billion globally from April to June. Amid geopolitical tensions, SpaceX and Planet Labs remained crucial. Europe held steady, North America declined 50%. Shanghai Spacecom's $943 million investment marked China's largest deal. Seraphim Space deemed U.S. 2024 impact unclear. James Bruegger predicted better 2025 growth despite global issues. Quarterly growth persisted, overcoming high interest deterring prior investors.
FMCG sector poised for hiring surge as consumer spending hits $6 trillion
FMCG sector in India set to boom with consumer spending projected to hit $6 trillion by 2030. Urban demand drives growth despite challenges. Organic and health products gain popularity. High turnover rates impact delivery schedules. Top roles in demand: Sales, Marketing, and IT. Attrition rates highest in metros. Report suggests strategies for hiring and retention.
TCS, HCL earnings recovery may get further push from AI demand
Indian IT companies like TCS and HCL are set to report on their earnings, showing signs of recovery amidst cautious spending by US and European companies. Retail giants Fast Retailing and Ryohin Keikaku are expected to see growth in operating profits. Keep an eye on LG Energy Solution's earnings amid lower demand for electric vehicles.
Is it time to start buying IT stocks? Macquarie’s Ravi Menon explains
The IT sector anticipates growth is being driven by AI and enterprise technology spending amid concerns over interest rates and consulting demand. Companies like Tata Technologies are facing valuation challenges in the engineering services segment, contrasting with positive growth prospects for IT services, says Ravi Menon, IT Services Analyst, Macquarie.
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.
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Strong ER&D demand helps IT buck overall soft hiring trend
India's $250 billion IT services industry is facing sluggish hiring, but a bright spot is emerging in Engineering, Research & Development (ER&D). Demand for ER&D services is surging, driving a 15% increase in recruitment for these roles. Staffing firms report that tech companies are ramping up ER&D hiring to stay competitive in the global market.
Why Indian IT companies are moving into New Jersey
Top Indian IT companies are zeroing in on New Jersey as its hub, with their top executives and a majority of Indian-origin engineers who work in the US making the city their base. India is New Jersey’s second-largest foreign direct investor and a majority of New Jersey’s immigrant population hails from India.
IT union seeks probe on DXC Technology's 4,800 campus onboarding delays
Data from the IT employee union NITES showed that India’s leading IT firms including Tata Consultancy Services (TCS), Infosys, Wipro and LTIMindtree have delayed joining dates of than 10,000 freshers. Harpreet Singh Saluja, president at NITES said these young professionals well-being and careers are at risk, we have asked the ministry to act as soon as possible.
Wipro merges two North American subsidiaries, liquidates Australian unit
Wipro merged its subsidiaries Designit North America and Wipro Designit Services, effective July 1st. In a separate move, they deregistered another step-down subsidiary Attune Australia Pty Ltd on June 26.
How GenAI is opening up new revenue streams for IT firms and GCCs
The rise of generative AI (GenAI) presents an opportunity for IT firms to unlock new revenue streams. Companies like Accenture, Infosys, and Tech Mahindra, alongside global capabilities centers (GCCs), are seeing a surge in data standardisation work. This is driven by the vast amount of "uncleaned/unstructured" data held by their clients and parent companies.
Facing an unprecedented slowdown, IT companies are undergoing a shift. Here’s what’s changing
IT companies like TCS, HCLTech, Wipro and Tech Mahindra are reorganising their businesses to wade through disruptions and prepare for Gen AI. TCS, under new leadership, merged AI and cloud operations into a unified AI.Cloud unit, responding to growing demand in cloud migration and transformation services.
No single theme to drive market; volatility to continue: Milind Karmarkar
So, my belief is that whenever a coalition is at the centre, then you see a decent growth. The clear focus is economics. The clear focus is to do better for the masses and that is what drives the markets, that is what drives the economy as well.
Tata Group firms engaged in over 100 Gen AI projects: N Chandrasekaran
TCS chairman N Chandrasekaran announced over 100 Gen AI projects within Tata Group, showcasing tangible business impact in customer experience, productivity, and efficiency.
Indian IT sees deal tenures shrinking in rich neighbourhoods
At least two companies – HCLTech and Birlasoft – have gone on record to say that from the usual 10-12 year deals earlier, long-term arrangements are now ending in four years. Earlier, the tenures ranged between 10-12 years.
View: Overturn cultural practices and dogmas to spur our companies to spend on R&D
WhatsApp showcases tales of ancient glory, while global reports highlight India's rankings in hunger, press freedom, and sustainable development. India ranks 40th on the GII 2023, above all BRICS nations except China.
Cosmos to meet RBI’s target for small sized loans at 50% loan book this year
Cosmos Bank, a Pune-based bank, aims to meet the Reserve Bank of India's target of maintaining 50% of its loan portfolio with ticket size less than Rs one crore this fiscal. The bank plans to use its network of 179 branches to achieve this goal. Currently, 43% of the bank's loan book comprises loans below Rs 1 crore. Cosmos Bank plans to raise technology spends to up to 20% of profits and cut costs through automation.
Cosmos Bank to raise tech spends in FY25 to 9 pc of operating expenses
Cosmos Bank is aiming to increase spends on technology to up to 9 per cent of its operating expenses in 2024-25, from the present 7 per cent, a top company official said on Tuesday. The cooperative bank, which was impacted by a cyber attack in the recent past, has been spending 6-7 per cent of the operating expenses, or 10-12 per cent of profits in technology, its Chairman Milind Kale told reporters.
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.
The great internet ad scam: Trusting the efficacy of online ad spend is irrational — it’s a bubble waiting to pop
What if all this spending is based on misconceptions about personal behaviour and the illusion of precision that these platforms offer? From an advertiser's perspective, the more funds that go into creating compelling content and targeting the right potential buyers, the better. Everything else is a waste. But reality is different.
AI-led tech craze leaves mega Indian software stocks in the dust
Unlike counterparts in the developed world and China, Indian software makers including leader Tata Consultancy Services have yet to make significant advances in generative AI. That combined with a still cloudy outlook for client spending may soon leave them looking like the tech bets of yesterday.
E&RD growth to come from US, Germany and Japan, says LTTS CEO
LTTS, a mid-tier information technology firm, reached the $1 billion revenue milestone in 2023-24 2024.
Parag Rao explains how HDFC Bank virtual credit card works
Parag Rao, Country Head of Payments Business at HDFC Bank, highlights growth opportunities in the credit card space with the digital ecosystem of HDFC Bank Virtual Credit Card, targeting Gen Z and millennial customers for digital empowerment.
Stock picks of the week: 4 stocks with consistent score improvement and upside potential of up to 39%
Last week’s movement of the market has brought back some memories of what happened in March 2024. Given the event risk in terms of election results, we might see higher volatility as some profit booking takes place. If one is not a trader and knows how to hedge, it would be better to be cautious before investing. If one is taking fresh exposure to equity, ensure that there is some level of quality as far as the business and fundamentals are concerned. These selected stocks depict a strong upward trajectory in their overall average score which is based on five key pillars i.e. earnings, fundamentals, relative valuation, risk and price momentum. This implies that there has been a significant improvement in their market outlook in the given time frame.
Midcaps up M&A game with winds of tech spends revival
Indian IT sector witnesses a surge in acquisitions by firms of all sizes, driven by the need to pivot to new technologies and business models. Smaller players innovate and acquire to become key innovation partners in digital areas.
TCS chairman N Chandrasekaran says GenAI to create impact not seen or imagined
In FY24 from April 2023 to March 2024, TCS also consolidated AI and Cloud expertise with the creation of the AI.Cloud unit.
Inflation-wary Fed may put IT revival on hold
Indian outsourcing leaders face delayed business revival until FY26 due to US Federal Reserve's high interest rates. The impact on revenue growth and IT firms' strategies could persist, affecting deals and revenue projections in the sector.
Indian banks to step up IT spends as regulatory scrutiny rises
Banks were earlier spending between 6%-8% of total operating expenditure on technology, sharply below the global average of 10%-12%.
Top IT companies cut over 72,000 jobs in FY24
The top six information technology services companies in India reported a reduction in their total headcount in the last fiscal year, with only HCLTech adding employees. Factors contributing to this reduction include the economic slowdown, automation, restructuring, and decreased discretionary spending. The drop in headcount reflects the aftermath of excessive hiring during the Covid boom and ongoing industry contraction in demand. However, experts believe that this trend may have bottomed out, and companies could resume hiring, given the strong deal wins announced by most of them, which could push a gradual pickup in growth.
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