Page 41 - Infosys

Will margin pressures end the Indian IT sector's glory days?

Indian IT companies are experiencing margin pressure. This has forced leading IT firms to reduce or withhold employee bonuses. How long will IT companies face this pressure? Is there a solution to it?

Nifty IT slips nearly 5% in a bearish market; Tech M, Infosys fall up to 6%

In the past eight days, the Nifty IT index has slipped 10 per cent, as compared to 4 per cent decline in the Nifty 50 index

Mcap of seven of top-10 valued firms tumbles over Rs 1.54 trilion

Seven of the top-10 valued firms suffered a combined erosion of Rs 1,54,477.38 crore in market valuation last week, with IT majors Tata Consultancy Services and Infosys emerging as the biggest laggards. Last week, the BSE benchmark index tanked 812.28 points or 1.36 per cent. Reliance Industries Limited, ICICI Bank and State Bank of India were the only gainers in the top-10 pack. The market valuation of Tata Consultancy Services (TCS) plunged Rs 59,862.08 crore to Rs 11,78,818.29 crore. The valuation of Infosys tanked Rs 31,789.31 crore to Rs 6,40,351.57 crore. HDFC Bank's valuation declined by Rs 16,090.67 crore to Rs 8,13,952.05 crore and that of Hindustan Unilever fell by Rs 14,814.18 crore to Rs 6,04,079.91 crore. The market capitalisation (mcap) of Bajaj Finance declined by Rs 14,430.4 crore to Rs 4,27,605.59 crore and HDFC by Rs 13,031.62 crore to Rs 4,34,644.36 crore. The valuation of Life Insurance Corporation (LIC) dipped Rs 4,459.12 crore to Rs 4,29,309.22 crore. On t

Falling margins, high attrition, moonlighting causing trouble for IT sector

Wipro, one of the four IT majors in India, announced that it will withhold the variable pay of mid, and senior-level employees for the June qtr (Q1FY23) due to poor financial health

IT firms cut staff bonuses as US, European clients tighten budgets

IT services firms are freezing or cutting staff bonuses, worried that tightening budgets at U.S. and European clients who are bracing for a recession will sharply hit their own profits

Slowdown in hyper-scalers could impact the revenue of the IT companies'

Major IT companies in India including Tata Consultancy Services (TCS), Wipro, Infosys and HCL earn nearly 50 per cent of their revenue from digital solutions supported by hyper-scalers like AWS, Azure

Sensex gyrates 1,027 pts, ends 257 pts up; Nifty holds 17,550; M&M gains 4%

CLOSING BELL: RIL, ICICI Bank, M&M, SBI, Bajaj twins, and Titan were the stocks that supported the indices

Stocks to watch: Infosys, RBL Bank, HDFC Bank, Zomato, Sobha, L&T

Stocks to watch today: RBL Bank approved fund raise of up to Rs 3,000 crore to fund the lender's business growth; HDFC Bank plans to raise funds worth Rs 2,500 crore through issuance of Tier-1 bonds.

Top Headlines: IT's ability to fund trade deficit dips, Infy cuts variables

Infosys has decided to reduce the average variable payout of employees to 70 per cent due to falling operating margins in the first quarter (Q1) of 2022-23

Infosys cuts average variable payout to 70% for Q1 on margin pressure

Infosys reported its operating margin in Q1FY23 at 20.1% down from 21-23%. The overall expenses had surged more than 29 per cent due to higher retention costs and cross-currency headwinds.

Infosys reduces avg variable pay to 70% for Q1 amid margin squeeze: Report

India's second largest IT services company Infosys has scaled back the average variable payout of employees to about 70 per cent for the June quarter amid margin squeeze and high employee costs, according to sources. Recently, Wipro held back the variable pay of employees mainly due to pressure on margins, inefficiency in its talent supply chain and investment in technology. Larger rival Tata Consultancy Sevices has reportedly delayed quarterly variable compensation payout for some employees by a month. According to the sources, Infosys has reduced variable payout for the June quarter or Q1 FY23 to about 70 per cent and the employees have been informed about the same. An e-mail sent to Infosys on the issue did not elicit a response. Last month, Infosys reported a lower-than-estimated 3.2 per cent rise in June quarter net profit amid escalating costs. However, the company raised its full-year revenue growth outlook to 14-16 per cent citing strong demand and robust deal pipeline. Th

Nandan Nilekani and Sanjeev Aggarwal's VC firm Fundamentum raises $227 mn

Post the fund's initial investment, Fundamentum's portfolio companies have collectively raised over $1 billion in follow-on rounds

Income tax e-filing, GSTN portals working 'pretty well': Infosys CEO

The income tax e-filing and GST Network portals are working "pretty well" and the systems are running effectively, Infosys CEO Salil Parekh said

Founders built incredible organisation; Infosys in stable position: Parekh

Salil Parekh, has praised the company's founders for building an "incredible organisation", and exuded confidence that the firm which "has always been solid" will "continue with that stability.

Infosys CEO Salil Parekh sees moderation in attrition over coming quarters

Infosys expects moderation in attrition levels over the coming quarters, as its efforts around employee engagement, training and salary hikes are starting to yield results, said CEO Salil Parekh.

IT spends in good shape; see continued strength in US, EU markets: Infy CEO

Infosys CEO Salil Parekh says he's comfortable with recently-raised full-year revenue growth outlook of 14%-16%

Eight of top-10 firms add Rs 98,235 cr in m-cap; Infosys, TCS lead gainers

Eight of the 10 most valued firms together added Rs 98,234.82 crore in market valuation last week, with IT majors Infosys and TCS emerging as the biggest gainers amid a positive momentum in equities

Charts show Nifty IT index has bottomed out: 4 stocks can rally up to 24%

MindTree, Mphasis and Larsen & Toubro Infotech may rally up to 24 per cent, while Infosys needs to overcome its near-term hurdle for fresh gains.

Cognizant Q2 profit up 12.7% at $577 mn, lowers revenue guidance

Revenue was at $4.9 billion, up 9.5 per cent in constant currency on a year-on-year (YoY) basis

Infosys Q1FY23 results: Here's how brokerages have interpreted the numbers

Going ahead, brokerages believe that the margin headwinds like travel costs, wage inflation will continue to persist in Q2FY23 as well.