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The company should be able to hold on to its margins, a function of greater revenue per employee and lower headcount growth vis-a-vis revenue growth Infosys' constant currency revenue growth guidance of 6-8% year-on-year (y-o-y) for FY19 was on expected lines. The marginal beat can be ascribed to a weaker exit in 4Q (0.6% CC) than our expectation (1.5% CC). This implies that the compounded quarterly growth rate (CQGR) will be better if the guidance is met. To meet its guidance range of 6-8% y-o-y constant currency (CC) revenue growth in FY19, Infosys will have to clock a CQGR of 1.8-2.5% in the next year. We are assuming 7.5% y-o-y CC growth factoring the guidance and incremental revenue from the acquisition. A cross-currency tailwind of 130 basis points (bps) would imply USD revenue growth of 8.8% for FY19. Net profit grew 2.4% quarter-on-quarter (q-o-q) to Rs 36.9 billion, below our estimate of Rs 38 billion, due to an impairment loss of Rs 1 billion taken in re...

Infosys gave a low key welcome to Parekh, unlike the aggressive marketing exercise it undertook to welcome Sikka Salil Parekh will earn an annual salary of Rs 162. 5 million ($ 2.55 million) as the CEO of Infosys, which is a quarter of what Infosys had signed up with his high profile predecessor Vishal Sikka, who quit the firm after three years in turmoil. The compensation also reflects the reality at Infosys and its chairman Nandan Nilekani who would like the low profile senior executive to execute a vision of focused delivery for customers than over promise and under delivery that would be in contrast with the company's culture. Parekh, the soft-spoken executive who was poached from global rival Capgemini, will get an annual fixed salary of Rs 65 million and variable pay of Rs 97.5 million that would be compensated based on achieving metrics set by the company. Infosys has also offered stock options worth Rs 97.5 million that would be vested over two years, the ...

" The distractions that we have seen, the constant drumbeat of the same issues over and over again, while ignoring and undermining the good work that has been done, take the excitement and passion out Vishal Sikka  has resigned as managing director and chief executive of Infosys with immediate effect. U B Pravin Rao has been appointed as interim-managing director and chief executive, India's no. 2 software services exporter said in a statement. Sikka has now been appointed as executive vice-chairman. Here’s the full text of Vishal Sikka's resignation letter. Over the last few days, since our earlier call, I’ve met Sesh several times, talked to you individually at length, and spent time thinking things thru with Vandana. During this time, one of our employees, Sandeep Karamongikar, died in his sleep, likely of a massive heart attack. He was working on the chatbot frontend in Nia. Also over the weekend, in possibly the greatest demonstration of AI capabilit...

Even if there were no Brexit or US Elections, hiring by IT firms would have been the same Fresh graduates out of engineering colleges may find getting a job tougher at large IT services firms this year as India's IT industry struggles with new business models. Technology services firms have traditionally hired thousands of fresh engineering graduates and trained them to build capacity to handle projects of their global clients. Now most of these entry level jobs can be automated, forcing   IT firms   to reduce their campus hiring. So Indian information technology (IT) services firms are likely to hire 40 per cent fewer engineering graduates this year. Tech firms have been witnessing a dip in traditional software services and maintenance business, which earns them a major chunk of revenue, as clients are demanding services on digital technology and cloud. This is freeing up people from repetitive tasks such as testing and low-end maintenance. Infotech companies such...

Board told about Sikka's pay hike, generous severance packages, disclosures Founders of   Infosys   have flagged concerns over transparency and corporate governance at second-largest software exporter in the country. They have questioned the compensation package of Chief Executive Officer (CEO) Vishal Sikka and the severance package to its former chief compliance officer David Kennedy. The founders, led by N R Narayana Murthy, have asked how the company would achieve the $20-billion target by 2020, as set by Sikka, in an uncertain global environment, said sources. Last month, Murthy, Nandan Nilekani and Kris Gopalakrishnan raised their concerns with the board. The current projections are contrary to how Murthy built the company, with his mantra of “under promise over delivery”. Murthy and the five founders had stepped down as promoter-shareholders to ensure that their influence over the company reduced after they moved away from executive roles. Since taking over a...

Sikka cautions that most of the work done Infosys can already be done with AI systems Latest News   : Infosys chief executive Vishal Sikka (pictured) has cautioned that the tidal wave of automation and technology-fuelled transformation could make the traditional information technology services obsolete. And, asked employees to shift their behaviour to adopt to shifts in technology. “The mountains ahead are tall ones. There is no other way but to get there and go... if we don’t, we will be made obsolete by the tidal wave of automation and technology-fuelled transformation that is almost upon us,” Sikka, the first non-founder chief executive, wrote in a New Year letter to employees. Sikka, whose letter had the subject: ‘Answers are blowing in the wind,’ cautioned that most of the work done by firms such as   Infosys   can already be done with artificial intelligence (AI) systems. “Our path forward is very clear – we need to harness the dual forces of automation ...

Infosys unveils modular e-commerce platform Software major   Infosys   Ltd on Wednesday unveiled a mobile first and modular platform to drive e-commerce programmes across retail channels. The platform has been developed by Skava, a Silicon Valley-based   e-commerce   start-up that the IT major acquired in June 2015 for $120 million, to enable businesses leverage cloud-based micro-services and white label applications to launch new offerings and improve conversion rates of digital channels. "The platform can integrate into present technologies, while providing a future-ready architecture for next-generation shopping experiences leveraging artificial intelligence (AI) and machine learning, natural language processing and virtual reality (VR)," the IT major said. The platform also has a mobile-first responsive web store and native mobile shopping applications that can be managed by non-technical business users through its studio, an intuitive web-based exper...

Is it a good time to buy Infosys? Royal Bank of Scotland’s (RBS’) last week’s decision of not pursuing its plan to separate and list a new bank – Williams & Glyn   (W&G) – hit   Infosys   in trade on Tuesday with the stock plummeting 3% in intra-day deals to its eight-month low of Rs 1,028 levels on the National Stock Exchange (NSE). Click here to track Infy's stock price movement Since then, it has recovered and is trading at Rs 1,046 levels, down nearly 1.5% around noon deals. By comparison, the Nifty 50 index was trading lower by 0.7% at 8610 levels, while the Nifty IT index slipped 1.3% to 11,029 levels. Also Read:   I am disappointed, says Infosys CEO Vishal Sikka in a letter to employees Given the RBS’ decision, Infosys would see a ramp down of around 3,000 resources. The likely impact on revenue could be around $50 million, reports suggest. This comes at a time when Infosys recast its annual revenue guidance for FY17 while announcing its ...

5 key takeaways from the Infosys results It does not take the markets too long to analyse Infosys’ results. Within seconds of announcement of the results, the stock price reflects what the market thinks about it. It was a poor start for   Infosys   for FY17 with the first quarter number missing analysts’ expectation on the revenue front. The markets showed their disappointment by pushing the stock 9% lower. The June quarter numbers came as a surprise, especially when market was getting complacent on Infosys beating expectations as it did in it last four quarters. Apart from revenue there are some more disappointments in the quarterly numbers. Here are five key   takeaways   from the Infosys results. 1. The company reported 2.2% QoQ growth in dollar revenues but a 1.7% growth in constant currency terms which was mainly on account of lower volume growth which grew by 2.2% as compared to 2.4% in the previous quarter. Justifying the lower-than-expected numbers, I...

In FY16, Infosys had 48 employees in India who were paid more than Rs 1 crore in annual compensation, as compared to 111 in FY15 The number of crorepati   Infosys employees   - those earning Rs 1 crore or more annually - residing in India came down to 48 in FY16 from 111 in the previous financial year. This could be, said sources, because many of them have moved to the client sites in the US this year, and their remuneration is not reflected in Infosys India's books. A lower bonus paid to senior employees could also be another reason. In FY16,   Infosys   stole the limelight with a better-than-expected performance. According to its annual report for the financial year, the number of employees earning Rs 1 crore or more per annum was 48. These are senior management personnel whose details are disclosed by the company every year "as per Rule 5(2) of Chapter XIII, the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014." In FY15, t...

Markets continue their southward journey triggered by a massive sell-off in global equities. However, a revision in country’s GDP growth for the current fiscal year has arrested the free fall on Dalal Street. At 2 pm, the S&P BSE Sensex was down 286 points at 24,001 and the Nifty50 was down 92 points at 7,295.  Read Full Article Over Here :  Business Standard News

IT services major, Wipro, reported a 2% rise in profits to Rs 2,243 crore for the third quarter, while revenue grew 7.23% to Rs 12,860 crore. Wipro, the third largest IT services firm, showed IT services revenue grew sequentially or over the previous quarter by 0.3% to $1.84 billion, meeting its forecast and analyst expectations. Operating margins, calculated as sales minus costs, stood at 20.2%, which was impacted marginally due to spending on backup plans during the Chennai floods. The company had reported profits of Rs 2,203 crore on revenues of Rs 11,992 crore in the October to December quarter in 2014.  Read Articles  

Infosys, India’s second largest IT services company on Thursday beat the street’s estimates with better than expected financial numbers for the quarter ended December 31, 2015. The Bengaluru-based company reported 6.6 per cent growth in net profit to Rs 3465 crore while its revenues grew 15.3 per cent at Rs 15,902 crore when compared with the corresponding quarter in the previous fiscal. The company’s growth was supported by a strong volume growth (growth in billed manpower in a quarter) of 3.1 per cent on QoQ basis.   Read Articles