In January, unexpectedly positive results from Infosys sent the company’s stock soaring and set the tone for a good run of quarterly earnings for India’s information technology sector.
One quarter later and Infosys has kicked off the full fiscal year earnings season with news that has sent its share price plunging right back to where it used to be. Is this, once again, a sign of what’s to come? Continue reading »
Despite the threat of fierce protectionism, challenging cultural barriers and major linguistic hurdles, the giants of Indian IT are looking to break into China’s previously closed software and outsourcing industry. Continue reading »
If Chancellor Angela Merkel and Prime Ministers David Cameron and Mario Monti came to Davos this week to convince the world the worst is over for Europe, they’ll get an approving nod from at least one Indian participant: “Kris” Gopalakrishnan, the chairman of IT giant Infosys.
“I’m very optimistic on Europe,” Gopalakrishnan told beyondbrics in Davos. “Europe has some great global businesses, and they seem to be doing much better than the overall economy. At some point, Europe will continue to grow. Continue reading »
Tata Consultancy Services (TCS), India’s leading IT services group, reported unexpectedly good profits for the quarter ended in December, confirming hopes that the good news from rival Infosys, which kicked off the earnings season on Friday, wasn’t just a one-off surprise. Even after rising 3.8 per cent on Friday on Infosys’s announcement, TCS was up a further 2.1 per cent on Monday. Continue reading »
Forecast-beating results from Infosys on Friday prompted the biggest daily gain in the IT company’s shares in a decade and raised hopes of a recovery in confidence in Indian business.
Continue reading »
It may seem no bad thing that India Inc is sitting on a mountain of cash – over $167bn at the end of March for the top listed 500 companies, according to the Economic Times. With the economy slowing and earnings weak – from State Bank of India to Bharti Airtel – the money might come in useful.
But in reality, the 26 per cent increase in net cash over the past three years is worrying evidence of the concerns India’s corporate leaders have over the economy. With industrial production flat, growth slackening, and inflation running high, these companies are unlikely to spend their reserves anytime soon. Continue reading »
In a widely expected move, Cognizant Technology Solutions – which is based in the US but operates mostly out of India – overtook Infosys as the IT industry’s second-biggest company by revenues, according to results for the quarter ended in June.
Analysts said such expectation-beating numbers have come to be, well, expected from Cognizant – to such an extent that when it merely meets expectations its stock falters – so there were few surprises contained in the results. Continue reading »
India’s top IT company, Tata Consultancy Services, continued its dominance with expectation-beating quarterly results announced Thursday.
The company reported a 38 per cent rise in net profit for the quarter ending in June, to Rs32.81bn ($586.6m), on revenues of Rs148.69bn ($2.66bn), propelled by a weaker rupee, cost-conscious western companies’ increased need for outsourcing, and its broad portfolio of services. Continue reading »
Infosys’ caution seems to have gotten the better of them again. Shares in the Indian company plunged as much as 9.4 per cent Thursday morning after the company released its results for the quarter that ended in June.
It was a familiar storyline for India’s second-largest IT company: it released results that met market expectations, but downgraded its dollar-revenue forecast for the fiscal year that ends in March 2013, and markets didn’t like it. Continue reading »
A glance at the Bombay Stock Exchange’s benchmark Sensex on Tuesday might have given the impression that more Indians than ever are lighting up.
ITC – formerly the Indian Tobacco Company, and, before that, the Imperial Tobacco Company India – overtook Reliance Industries as the index’s top-weighted stock. Continue reading »
Shares in Infosys, India’s second-largest software maker, fell sharply on Friday after it gave weak guidance for the coming year. The shares lost as much as 11 per cent in early trading – despite the fact that company profits in the last quarter beat expectations. Continue reading »