Skip to main content

Mega deal wins to help Infosys as BFSI hits lean patch Report

YouTube Video Thumbnail
The demand environment has not seen much change since June quarter results of Infosys barring a few mega deal closures as certain pockets in banking and financial services and discretionary spending in retail continue to be "under pressure," said the report.The overall demand environment for IT companies continues to be weak indicates an internal report by Kotak Institutional Equities quoting the management of India's second largest firm Infosys. However, Infosys said recently won mega deals will provide a strong growth base for FY25. The demand environment has not seen much change since June quarter results of Infosys barring a few mega deal closures as certain pockets in banking and financial services and discretionary spending in retail continue to be "under pressure," said the report. "These (the under-pressure areas) include cards, mortgages, capital markets and investment banking in financial services, discretionary retail, parts of telecom and hi-tech. These challenges are captured in muted 1-3.5% revenue growth guidance for FY24," the September 6 Kotak note said. The Bengaluru-based firm lowered its annual guidance to 1-3.5% from 4-7% last quarter. The brokerage said it hosted deputy CFO Jayesh Sanghrajka and investor relations head and financial controller Sandeep Mahindroo recently. The three mega deals (Danske, Liberty Global and an unnamed $2 billion extension) will ramp up in the next few months and provide a good platform for FY25, the management said. A mail sent to Infosys seeking a comment remained unanswered. Delay in closures of deals was one of the contributing factors for to slash the earlier guidance, while the delays were not due to decision-making pace of clients but attributed to additional regulatory approvals, the note by analysts Kawaljeet Saluja, Sathishkumar S and Vamshi Krishna said. For the first quarter of FY24, net profit grew nearly 11%, but missed analyst estimates. At 1-3.5%, this will be its lowest revenue expansion in a decade and the company blamed it on spending cuts and project ramp downs. It has been a season of large deals in the IT sector over the past few months. This is mostly because clients are cutting down on costs, monetising captives and internal assets, to focus on core operations. This comes weeks after Infosys signed a $1.6 billion AI and cloud-themed deal for an initial five-year engagement with telecom and communications group Liberty Global in August. The value of the contract could go up to $2.5 billion and, if extended to eight years, this could be one of the largest deals signed by Infosys in its four-decade history. On Wednesday, Tata Consultancy Services bagged a $1 billion deal from the digital unit of another group firm JLR that will span over the next five years. In June TCS also won a deal from UK-based National Employment Savings Trust (Nest) to digitally transform its scheme administration services. The deal (with possible extensions) is valued at about $1.9 billion. The current 10-yr deal is valued around $1.0 billion. Last month, Verizon Business too made HCLTech its primary managed network services (MNS) collaborator in all networking deployments for global enterprise customers. The deal value has an estimated new total contract value (TCV) of $2.1 billion for a duration of six years.

Comments

Post a Comment

Popular posts from this blog

No man wants to date me Lady with unique nose cries bitterly Video

A pretty lady has gone online to lament bitterly over her singlehood as she attributes the status to their unique of her nose. The lady named Ammie Sweeshy cried out over her situation since no man appears to be approaching her or making any romantic advances towards her because of her nose. She made this known in response to a question a curious netizen asked inquiring if she has a boyfriend. Ammie could be observed crying in the video because no man seems to want her or making any romantic move to sweep her off her feet. Some netizens tried consoling her as they note that she's still pretty regardless of the nose. @dawgtreyna said: "Funny enough the nose actually fits you. You are still a fine girl though." @THE FASTEST BAGGER said: "You're so beautiful, don't let what people say ruin you. I'm single in case you need a boyfriend, let me know." @Princesseron commented: "Don't worry, dear. Even those who have small noses, some don't...
Post a Comment
Read more

British victory in Falklands War might spur Argentina to build nukes CIA feared

Agency worried that Argentina's political isolation following defeat could play a role in a decision to advance its nuclear program The CIA feared that British victory in the 1982 Falklands conflict would encourage Argentina's ruling military junta to step up its efforts to construct nuclear weapons, according to a newly uncovered report. Intelligence analysts at the spy agency examining the issue of nuclear proliferation wrote in a secret report that "the Falkland Islands crisis is raising security issues for Buenos Aires that could influence Argentine attitudes towards the development of nuclear technology." The report, dated 24 April 1982, said: "A humiliation in the Falklands probably would encourage the conclusion that the possession of nuclear weapons - or merely the foreign belief that Argentina had such weapons - might have made the UK more accommodating. A major reverse for Argentina in the dispute could persuade it to proceed to build nuclear weapons....
Post a Comment
Read more

Osho on Spontaneity

Osho on Spontaneity – Divine purity reduced to practical life means spontaneity Osho – Divine purity reduced to practical life means spontaneity. The spontaneous person is innocent. He has a quality that only children have, and that is the meaning of purity, innocence. He has the quality that animals have and the trees have and which man has lost. To be spontaneous means not to act out of the past, because out of the past is all cunningness, cleverness, calculation, arithmetic. When you act in the moment and it has no reference to your past, the action has a beauty, a purity – the same as a small child’s act. Whether he laughs or cries or goes into a tantrum or becomes angry, all his acts have purity – it is uncalculated. His anger is hot and not cold. The calculated anger is cold. His anger is natural, a responsiveness. He has not brooded over it, he has not planned it. He is just in the hands of nature – hence the beauty. He is surrendered to his nature; he is not trying to cont...
Post a Comment
Read more