THE SECOND QUARTER (July to September) earnings season has kicked off and it hasn’t been all good news for the information technology majors—Tata Consultancy Services (TCS), Infosys, HCL Technologies (HCLTech), and Wipro. A decline in revenues, a slowdown in growth, and a cutback in hiring were prominent themes across IT companies. Although the firms’ managements sought to highlight the big deal wins, they trimmed the outlook for the upcoming quarters.
TCS, the leader in terms of market capitalisation, missed street estimates in Q2FY24. Its revenue was up 0.5 per cent sequentially at ₹59,692 crore, but was up 7.9 per cent year-on-year. In US dollar terms, revenue declined for the first time in over 13 quarters, dipping 0.2 per cent sequentially. The company reported a net profit of ₹11,342 crore, up 2.42 per cent sequentially, but below estimates.
Analysts at ICICI Securities downgraded TCS after noting that the demand environment for IT companies was tough. “Revenue growth continues to be muted despite strong deal TCV (total contract value) of $10 billion-plus for three consecutive quarters, due to rationalisation of discretionary spends in existing projects and completion of certain large transformation projects,” the analysts said.
Similar trends were observed at Infosys, which reported revenue of ₹38,994 crore. In constant currency terms, Infosys reported revenue growth of 2.3 per cent sequentially, operating profit of ₹8,274 crore and an Ebit (earnings before interest and taxes) margin of 21.2 per cent.
Diese Geschichte stammt aus der November 12, 2023-Ausgabe von Business Today India.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der November 12, 2023-Ausgabe von Business Today India.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
Pension Scheme - Safety Net
The move to introduce the UPS has evoked mixed reactions. Analysts believe its funding will have limited impact on the fiscal math
The Reit Choice?
Real Estate Investment Trusts (Reits) Are Gaining Traction As Interest Rates Stabilise. But Returns Could Be Affected By Adverse Economic Conditions And Market Volatility
CORPORATE - Calling to Account
The sudden exit of Byju's auditor BDO marks the latest in a long series of setbacks for the edtech firm
EMPLOYMENT: Skills Push
The skill development ministry plans to partner with the UGC to improve the employability of undergraduates
Building on a Vision
L&T'S CHAIRMAN EMERITUS A. M. NAIK HAS BUILT A MAMMOTH ENTERPRISE THAT IS BUILDING A NEW INDIA, FROM ITS METRO RAIL SYSTEMS TO THE RAM TEMPLE
"KYS more important than KYC"
Vijay Kedia is a renowned equity investor; the value of his listed portfolio stands at around ₹1,750 crore
ROXX STAR
THE THAR ROXX COMBINES LUXURY WITH PERFORMANCE TO MAKE A STRONG STATEMENT IN THE MID-SIZE SUV SEGMENT
HIT THE GROUND RUNNING
Smartwatches have become indispensable tools for runners, offering real-time insights into pace, distance, heart rate, and more. Here are a few you can consider
TURNING THE TABLES
INDIA'S FURNITURE MARKET IS POISED FOR A GLOBAL TAKE-OFF. ALREADY, A HOST OF GLOBAL BRANDS HAVE MADE THE COUNTRY THEIR HOME, BUT INDIAN COMPANIES ARE NOT TOO FAR BEHIND
THE EVOLUTION OF ATHERA
IDENTIFYING OPPORTUNITIES IN ADVANCE HAS STOOD THIS BENGALURU-BASED VC FUND IN GOOD STEAD. NOW, WITH A HEIGHTENED FOCUS ON TECHNOLOGY, IT WANTS TO SUSTAIN THE SUCCESS