This will change on April 12. Some see this as reflecting a new confidence at Infosys. The sector, overall, is expected to post good results for the March quarter, the final one for 2018-19. In early heydays, Infosys was the first to announce its earnings, followed by TCS. Then TCS started doing so. This was around when TCS became the clear leader, the revenue gap between the two widening.
In the past five financial years (FY15 to FY19), there were only six quarters when Infosys announced its results first. FY15 and FY16 were when Infosys had a clear lead. Starting FY17, the trend reversed, coinciding with the period of turmoil at Infosys — Vishal Sikka, the then chief executive, and founders were at loggerheads over various issues.
“TCS started catching up and, in between, Infosys lost because of all these changes,” said V Balakrishnan, former Infosys board member and chairman of Exfinity Venture Partners. “Now, I think, Infosys is back on track and the management wants to maintain the momentum. It (simultaneous announcement) is not (mere) coincidence.”
“Infosys bought the BPM (business process management) business from ABN AMRO recently. The company has entered into ventures in Singapore and Japan. I think Nandan’s (Nilekani) leadership is showing,” Pai said.
Some experts believe that with the heavyweights deciding to announce the results on the same day, the overall sector will put up a good show for the quarter. “We expect a steady quarter, with strong growth from TCS, Infosys and HCL Technologies in the tier-1 IT services pack,” wrote Aniket Pande and Rajat Gandhi of brokerage Prabhudas Lilladher. “Despite seasonality, we expect strong deal closures in line with the previous quarter but anticipate some pressure on Ebit (earnings before interest and taxes) margins due to rupee appreciation, project ramp-ups, and continued supply-side constraints.” The brokerage firm expects revenue of TCS and Infosys to grow 2.3 per cent in constant currency terms in Q4. It also sees the former’s operating margin remaining stable and that of Infosys facing some headwinds.
Edelweiss Research has said accelerating digital growth, an improving deal pipeline and revival in the BFSI (banking, financial services and insurance) and retail verticals would accelerate Infosys’ revenue growth in the next financial year. “We estimate 8 per cent growth in dollar revenues in FY19, which will rise to 10 per cent in FY20,” the report said.
Murthy made these comments at a PwC event, without elaborating.
Infosys paid Rs 34.35 lakh to the Securities and Exchange Board of India last month to settle a case pertaining to the severance pay to former CFO Rajiv Bansal.
Murthy was the first to raise a red flag in February 2017 over the company’s failure to disclose the severance pay to the board.
The Infosys founder said Infosys “was an intellectual debating society” during his tenure and there would be arguments with cofounder Nandan Nilekani and former board member Mohandas Pai before taking decisions. “By and large, in an enlightened democracy, you avoid serious mistakes… because there is an opposition and that opposition holds the government accountable and therefore there is at least minimal damage,” said Murthy. “Similarly at Infosys, by and large, we avoided any serious mistake as long as we all were together.”
Zoomcar, a self-drive car rental service provider, has reported a significant rise in its operating revenue for the financial year 2018, although its losses have also widened during the same period.
The company has reported a 31% increase in its operating revenue to Rs 155 crore for the 2017-18, from Rs 118 crore the previous year. However, the losses too grew by 10.2% during the same period.
In 2017-18, Zoomcar’s losses rose to Rs 116.4 crore from Rs 105.6 crore the previous year. On the other hand, the total expenditure increased to Rs 274 from Rs 225.7 crore during the same period.
Founded in the year 2012, by David Back and Greg Mohan, Zoomcar is a startup that is a part of the new generation of transport services which promote shared mobility. The startup basically works on the principle of the hyperlocal model. It allows customers to book cars online and then pick the cars up from designated locations.
Till now, Zoomcar has received an investment of $100 Million. The latest round was a Series C round, which brought in $40 Million from Mahindra & Mahindra in February last year. Apart from Mahindra & Mahindra, Sequoia Capital, Ford, and angel investors like TV Mohandas Pai, the CFO and HR of Infosys and Lawrence Summers, the former US treasury secretary, have also invested in Zoomcar.
Picture Credits: Zoomcar
India’s information technology (IT) services sector and startups together are expected to hire up to five lakh people in 2019 as demand for freshers is on the upswing, an industry veteran said Wednesday. Former Chief Financial Officer of IT major Infosys Ltd, T V Mohandas Pai said entry-level packages in the industry went up by as much as 20 per cent in 2018, after stagnation in salaries for the past seven years.
“Growth is coming back to the Indian IT services industry,” he told PTI, talking about industry highlights in 2018 and prospects in the coming calendar year.
Pai said 2018 saw “H1B visa situation getting tougher,” Indian companies focusing more on Japan and southeast Asia, massive expansion of captives and buy-backs by big companies.
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