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<ul class="summary-list"><li>Gucci had a challenging third quarter partly due to its APAC slump, per Kering's latest earnings call.</li><li>The Italian luxury brand's sales dropped 25% this quarter compared to the previous year.</li></ul>Gucci just had a bad quarter, and Kering is attributing the lackluster performance to a slump in its Asia Pacific market.The Italian luxury brand saw a 25% drop in quarterly revenue as compared to a year before.Gucci's parent company, French luxury group Kering, reported $1.77 billion in sales in the third quarter of 2024, compared to $2.39 billion in the same period last year."Sales from the directly operated retail network were down 25% on a comparable basis, the House being particularly impacted by market conditions, especially in Asia-Pacific," Kering's press release on Wednesday said of Gucci.The Asia Pacific region, which accounted for about a third of Gucci's global revenue this quarter, was the major dampener on sales.According to a third-quarter revenue infographic by Kering, sales in the APAC region were down 38% compared to the previous year."With discipline and determination, we are executing a far-reaching transformation of the Group, and at Gucci in particular, at a time when the whole luxury sector faces unfavorable market conditions," the group's CEO, François-Henri Pinault, said in the release."This severely impacts our performances in the short term," he added.Kering's performance was weaker than analysts had predicted."Overall, we were expecting a challenging 3Q print, and some level of reduction in FY24E EBIT guidance, however the magnitude of earnings erosion in the short term is worse than expected," analysts at RBC said in a note seen by Reuters."Of course, the debate continues to center on Gucci. How can the brand recover its mojo, how will margins ever build towards the 41%+ mid-term target, especially after FY23?" Jefferies analysts, led by James Grzinic, wrote in a note released on Wednesday.Luxury brands have been struggling in the Asian market, particularly in China. LVMH <a target="_blank" class="" href="https://www.businessinsider.com/lvmh-luxury-louis-vuitton-struggles-china-slowdown-2024">reported a 3% year-over-year decline in sales</a> in the third quarter due to waning demand from Chinese consumers.An ongoing property crisis, geopolitical tensions, and high youth unemployment rates have weakened consumer confidence in the country, which was once heralded as one of the world's hottest luxury markets.However, a bright spot for Gucci in Asia was Japan. According to Kering, Gucci saw a 7% increase in sales in Japan in the third quarter compared to the start of 2024.Luxury <a target="_blank" class="" href="https://www.businessinsider.com/rich-chinese-flock-to-japan-in-search-of-luxury-bargains-2024-7">sales in Japan have been strong</a> despite a downturn across Asia. This was partially because of its weakened currency, which attracted foreign tourists to buy luxury items on its shores."Right now, the devaluation of the yen is driving a lot of tourism to Japan," Amrita Banta, managing director of luxury insights firm Agility Research &amp; Strategy, told Business Insider in July.Apart from Gucci, Kering's other brand, Yves Saint Laurent, also suffered a loss. YSL's sales were down 12% compared to the same period last year, Kering reported.Shares for Kering fell nearly 1.5% after its earnings were released on Wednesday in Europe. Kering's stock has fallen over 40% year-to-date.The third quarter earnings come shortly after Kering appointed Stefano Cantino as Gucci's new chief executive on October 8. Cantino was previously the brand's deputy CEO. Representatives for Kering did not respond to a request for comment from Business Insider sent outside regular business hours.

Things aren't looking great at Gucci, and Kering says its APAC slump is to blame

<ul class="summary-list"><li>Airbus reported a third-quarter profit of $1 billion on Wednesday. Boeing lost $6 billion in the same period. </li><li>The European company has more orders and appears to be coping better with supply-chain issues.</li></ul><a target="_blank" class="" href="https://www.businessinsider.com/airbus-struggling-outsider-beating-boeing-737-max-a320neo-2024-1">Airbus</a> reported its third-quarter earnings on Wednesday, which showed its strength over rival Boeing.The European planemaker posted a quarterly profit of 983 million euros ($1 billion) — a sharp contrast to <a target="_blank" class="" href="https://www.businessinsider.com/boeing-q3-results-earnings-loss-ceo-vows-iconic-again-2024-10">Boeing's $6.1 billion loss</a> for the same period it announced last week.UBS analyst Ian Douglas-Pennant said investors should be reassured by Airbus' profit margins, "although commentary on supply chain weakness may offset this."The stock dipped on Thursday before turning positive. Although the shares are flat for the year to date, Airbus is worth about $123 billion — $28 billion more than Boeing. Its shares have slumped almost 40% this year. Here are four key ways Airbus has been outshining its American rival this year.<h2 id="8c6b07dc-d532-4fcd-adc6-83b4bbcde314">1. Customer confidence</h2>Airbus has outsold Boeing since 2019, when the <a target="_blank" class="" href="https://www.businessinsider.com/boeing-crashes-groundings-timeline-737-max-777-air-force-tanker-2024-1">737 Max</a> suffered the longest grounding for a US airliner following two fatal crashes that killed almost 350 people.Customers grew frustrated with Boeing in the wake of January's Alaska Airlines 737 Max blowout because it signaled <a target="_blank" class="" href="https://www.businessinsider.com/boeing-737-max-quality-control-company-culture-merger-finances-2024-1">quality-control problems</a> and affected production.In the first nine months of this year, Airbus' 667 gross orders were more than double Boeing's tally of 315.The Airbus A320 family leads the industry in single-aisle planes and looks set to gain further with its game-changing <a target="_blank" class="" href="https://www.businessinsider.com/wizz-airbus-a321xlr-no-frills-economy-cabin-seats-range-2024-10">A321 XLR</a>, which will unlock longer routes. The first was delivered to Spain's Iberia on Wednesday.<div type="image" title="The first Airbus A321XLR delivered to Iberia" height="1125" width="2000" msid="114820649" hostid="261" sizebytes="64566"></div>On the same day, <a target="_blank" class="" href="https://www.businessinsider.com/saudi-arabia-riyadh-air-airbus-a321neo-order-blow-boeing-2024-10">Riyadh Air ordered</a> 60 Airbus A321neos despite speculation late last year that the new Saudi airline would opt for Boeing 737 Max jets for its single-aisle fleet.<h2 id="d89e6722-c912-4b49-b3df-ef65ced4d1f7">2. Coping better with huge backlogs</h2>Sales are one part of the puzzle, along with delivering planes on time."We believe the primary focus among investors is the execution of aircraft deliveries," Royal Bank of Canada analyst Ken Herbert said in a note to clients.Both planemakers have huge backlogs: Boeing has more than 5,400 orders, while the Airbus total is about 8,750.<a target="_blank" class="" href="https://www.businessinsider.com/neither-boeing-nor-airbus-won-this-years-farnborough-airshow-2024-7">Supply chain constraints</a> on labor and raw materials have hampered the industry this year, but Airbus has been coping better. It has delivered 497 planes this year compared with Boeing's 291."Airbus' main task is ramping up production of its popular airliners beyond even prepandemic rates," Morningstar's Nicolas Owens said in a note.Like last year, <a target="_blank" class="" href="https://www.businessinsider.com/airbus-lowers-targets-after-benefiting-from-boeing-struggles-2024-6">Airbus expects deliveries</a> to increase in the final three months of the year, meaning it will meet its goal of 770 planes. The guidance confirmation was "arguably the biggest surprise of the release," Deutsche Bank analyst Christophe Menard said in a note.<div type="image" title="Airbus employees work on the A321 assembly line of the Airbus plant in Cornebarrieu, France" height="3628" width="5442" msid="114820646" hostid="261" sizebytes="1052908"></div>A prime issue for Airbus is a scarcity of jet engines, which Bank of America analysts said remained "concerning," but added: "It appears Airbus has much of what they need to meet the guidance."Boeing has far more problems. Regulators <a target="_blank" class="" href="https://www.businessinsider.com/boeing-secures-737-max-order-but-delays-getting-worse-2024-7">capped 737 Max production</a>, and assembly lines have slowed down following scrutiny of its manufacturing processes. <a target="_blank" class="" href="https://www.businessinsider.com/boeing-strike-rising-tension-complaint-union-nlrb-2024-10">Boeing workers have also been on strike</a> in a dispute about to enter its seventh week.<h2 id="4e9147dd-bb52-4b3a-b888-4d2c66cebfde">3. Defense and space</h2>Commercial airplanes make up the bulk of both company's businesses, but both have defense and space divisions.Boeing's operation was in the red to the tune of $2.3 billion this quarter, which it largely blamed on losses on military programs.It also took a <a target="_blank" class="" href="https://www.businessinsider.com/boeing-lost-250-million-on-starliner-2024-10">$250 million hit on the Starliner project</a>. The spacecraft suffered helium leaks and its astronauts are set to return to Earth after eight months rather than eight days — and courtesy of Elon Musk's <a target="_blank" class="" href="https://www.businessinsider.com/spacex-elon-musk">SpaceX </a>instead.<a target="_blank" class="" href="https://www.businessinsider.com/airbus-european-aviation-cutting-jobs-space-defence-boeing-rival-2024-10">Airbus' defense and space</a> division has suffered too, and the company announced up to 2,500 layoffs earlier this month and took a charge of 989 million euros ($1.08 billion) in the second quarter.This quarter, Airbus recorded earnings on the EBIT measure of 143 million euros ($155 million), including a 51 million euro gain from acquiring the remaining 50% of OneWeb — a satellite constellation similar to <a target="_blank" class="" href="https://www.businessinsider.com/elon-musk-starlink-qatar-airways-productivity-bosses-video-call-meetings-2024-10">Starlink</a>.It appears SpaceX could threaten business for both Boeing and Airbus. Faury did not name Musk's company on Wednesday's earnings call, but said the European space industry "needs to transform in order to remain competitive against other global players, including some new players."<h2 id="015da783-2764-4dd1-8be6-57e225e53ebe">4. Stability</h2>In a duopoly, it might be tempting to twist the knife and criticize a struggling rival's problems, yet Airbus has been careful with its words in the face of Boeing's woes.Faury said in February the <a target="_blank" class="" href="https://www.businessinsider.com/airbus-ceo-boeing-737-max-blowout-makes-very-humble-safety-2024-2">Alaska Airlines blowout "makes us very humble"</a> and it's "never good when an incident is happening, whatever the type of plane."Commercial aircraft CEO Christian Scherer said at the Farnborough Airshow in July: "When one of the players loses its way, first and foremost, we're focused on what we have to do at Airbus."<div type="image" title="A collage of Airbus CEO Guillaume Faury and Boeing CEO Kelly Ortberg" height="1080" width="1440" msid="114820651" hostid="261" sizebytes="97462"></div>Investors and customers can also find confidence in more stability at Airbus, with CEO Faury announcing in the earnings call that shareholders will vote on renewing his contract.Since Faury took over at Airbus in 2019, three people have run Boeing.Dennis Muilenburg and <a target="_blank" class="" href="https://www.businessinsider.com/boeing-dave-calhoun-failed-to-turn-boeing-around-737-max-2024-3">Dave Calhoun</a> were both ousted from Boeing following different 737 Max crises. <a target="_blank" class="" href="https://www.businessinsider.com/boeing-terrible-24-hours-turnaround-analysts-union-vote-production-backlog-2024-10">Kelly Ortberg</a> has only been in charge since August but has a plan to turn things around after a turbulent time with the strike, layoffs, and regulatory scrutiny.

4 ways Europe's Airbus is faring better than Boeing

<ul class="summary-list"><li>Wall Street analysts expect Amazon to deliver an earnings beat when it reports quarterly results on Thursday </li><li>Expanding growth in Amazon's cloud platform is a bullish driver, analysts said. </li></ul>Wall Street is gearing up for <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/amzn-stock">Amazon</a> to deliver strong quarterly financial results after the closing bell on Thursday, though uncertainty lingers about how the company might navigate a slowdown in consumer spending. Most analysts anticipate solid earnings and further upside for Amazon stock, driven by its cloud platform and advertising strength. Yet, concerns linger over slowing retail margins and Amazon's rising investments in other areas of its business. That includes Project Kuiper, Amazon's initiative to deploy thousands of satellites for an increased broadband network, as well as investments in AI.Here's what analysts are saying ahead of the company's earnings.<h2 id="7d0771bb-aa3e-412b-a84f-9826870e8bca">CFRA: Searching for investment balance</h2>CFRA considers Amazon a compelling multi-year profit and cashflow story, but the firm is cautious about near-term prospects. "Growth may not be linear due to a tepid consumer spending environment, lumpy AWS deal volume, and accelerated investments in areas like Project Kuiper, generative AI, same-day fulfillment, and Prime Video digital content."Analyst Arun Sundaram said this will translate into a "modest" third-quarter earnings beat. CFRA expects revenue to rise 10.5% year-over-year and GAAP operating profit to climb 36%. CFRA's estimates are at the upper end of Amazon's guidance range."Overall, investors will be looking for AMZN to strike the right balance of growth vs. investments," Sundaram said.The note said that while Amazon's operating margins are expected to continue growing into 2025, reinvestment into other areas of the business will slow this expansion.CFRA trimmed its Amazon price target to $219 a share on October 21, indicating 13% upside ahead.<h2 id="29d2fdf4-34f7-4afe-b90a-0a79ffeca902">Bank of America: Mixed results incoming</h2>BofA's Justin Post suggested investors brace for a mixed bag of third-quarter results.Bank of America views consensus revenue estimates as too high and predicts $157 billion for the quarter. However, the bank's outlook for operating profit stands above consensus views at $15 billion.The bank expects the quarter's leading growth drivers will include Amazon Web Services, the firm's AI-led cloud-computing platform. According to Post, margins here will likely be better than Wall Street is expecting"AI demand likely improved further in 3Q, and we think investors may be expecting 20% y/y growth for 3Q, which would suggest the largest 3Q in terms of sequential dollars added at $1.39bn," he said.Consumer spending uncertainty could be a concern, and BofA expects a slight deceleration in discretionary retail sales growth.The firm has a "buy" rating on the stock and a $210 price target, which implies an 8.3% gain from current levels.<h2 id="a9024ebe-7cb6-44b8-a728-de20774ef87c">JPMorgan: AWS acceleration leaves room for optimism</h2>JPMorgan cited Amazon's expanding cloud platform and solid store growth as key reasons to be bullish on the stock.The bank said easing optimizations, workload migrations, and AI's growing monetization will support further AWS acceleration through this year, leading to 20% growth year-to-date.In line with Bank of America, the firm anticipates third-quarter net sales to reach $157 billion, below consensus estimates of $157.3 billion. Meanwhile, retail profits in the last quarter faced headwinds, and consumers appear cautious about spending. Shoppers eager for a deal are weighing on Amazon's average selling prices, the bank said.JPMorgan has an "overweight" rating on Amazon and a $230 price target. This suggests an 18.6% upside from current levels.<h2 id="fb352aa7-bfbb-4165-82f3-89a50fc7ea22">Wedbush Securities: Don't worry about rising investment costs</h2>Wedbush Securities has cheered Amazon's growing cloud segment and a revenue shift toward high-margin advertising. Together, these should help offset headwinds brought on by the company's spending on investments elsewhere. "We think the risk/reward is attractive heading into results as investor expectations for 2H profitability have moderated, AWS growth continues to accelerate, and advertising momentum is building into 2025," a team of analysts led by Scott Devitt wrote.The firm said investors have toned down margin expectations due to Amazon's spending in new investment areas, such as Project Kuiper. While this may require more investment from the company over time, Wedbush doesn't expect it to impact profitability in the near-term.Wedbush reiterated its "outperform" rating and $225 price target, implying a 16% gain from current levels.<h2 id="e4b3e058-a63d-4251-8620-4b1f8f0899e3">Morgan Stanley: Bullish into 2025</h2>Analysts led by Brian Nowak focused on Amazon's fourth-quarter guidance, suggesting that the company's earnings before interest and taxes might come in lower than expected."We see AMZN's high and growing focus on lower-priced, lower-margin essentials driving merchandise margin pressure... which is holding back the near-term slope of its N. America retail profit ramp. Expected discounting in a competitive holiday season (and picky discretionary consumer) create further near-term uncertainty," they said.The bank expects fourth-quarter EBIT of around $17.5 billion, 1% below consensus expectations.But looking forward to 2025, the bank recommends sticking with the stock as retail pressures will be a short-term headwind. Corporate efficiencies and shipping costs will make lower-priced essentials profitable for the company through next year, the bank projected.Morgan Stanley has a $210 price target for the stock, representing upside of about 8% from Wednesday's share price.

Wall Street is bullish on Amazon earnings despite uncertainty around consumer spending, rising investment costs

India’s electric vehicle (EV) sector, often seen as a key player in the country’s clean energy transition, has been called “irrelevant” without government <keyword id="20231384" type="General" weightage="20" keywordseo="incentives" source="keywords">incentives</keyword> by a recent Bernstein research report. The report highlights the serious challenges automakers face in achieving profitability and scaling operations in the EV segment, which remains heavily reliant on financial support from the government. <h2>Struggling to achieve profitability</h2>The Bernstein report reveals that generating profitable margins in the Indian EV sector is proving to be an uphill battle for automakers. “It is tough to generate sufficient margins and get scale in EVs. Even with hefty incentives, incumbent OEMs are still unprofitable,” the report stated. This underscores the fact that even with <keyword id="20022183" type="General" weightage="20" keywordseo="government-subsidies" source="keywords">government subsidies</keyword> aimed at promoting <keyword id="20138204" type="General" weightage="20" keywordseo="electric-mobility" source="keywords">electric mobility</keyword>, automakers are struggling to make EVs financially viable. High production costs, limited infrastructure, and relatively low consumer demand all contribute to this issue. Traditional automakers, particularly in India’s two-wheeler market, are facing significant financial losses. According to Bernstein, while some niche startups may survive, their long-term market share will likely remain limited, and competition will primarily be between established original equipment manufacturers (OEMs). The key challenge for these OEMs is achieving the scale and cost reductions required to compete with the well-entrenched internal combustion engine (ICE) sector. <h2>Reliance on incentives</h2>One of the most striking conclusions from Bernstein’s analysis is the deep reliance of the EV sector on government subsidies. Without these incentives, the <keyword id="19952060" type="General" weightage="100" keywordseo="EV-Industry" source="keywords">EV industry</keyword> would be unable to compete with traditional ICE vehicles. “The EV Industry is not relevant without incentives currently, and to break the ICE sector, it needs intense focus, scale, and continued cost downs,” the report emphasised. This indicates that while government schemes like GST benefits have helped reduce the cost difference between EVs and ICE vehicles, they are not enough to ensure the long-term sustainability of the EV sector. Bernstein estimates that the overall EV two-wheeler industry in India generates around USD 1.3 billion in annual revenues, but without government support, the sector incurs an EBIT loss of approximately USD 300-400 million. The high cost structure of EVs, combined with the relatively low sales volumes, makes it difficult for companies to operate without subsidies. <h2>Established players face mixed fortunes</h2>Among India’s leading two-wheeler manufacturers, Bernstein noted that <keyword id="19897354" type="General" weightage="20" keywordseo="Bajaj-Auto" source="keywords" meta.keywordsubtype="org" meta.entityname="Bajaj Auto" meta.hostid="265" meta.entityid="Bajaj Auto">Bajaj Auto</keyword> and <keyword id="20326963" type="General" weightage="20" keywordseo="TVS-Motors" source="keywords" meta.keywordsubtype="org" meta.entityname="TVS Motors" meta.hostid="265" meta.entityid="TVS Motors">TVS Motors</keyword> are on a similar footing in terms of their performance in the EV space. Bajaj Auto received an "Outperform" rating from Bernstein due to its lower valuations, while TVS Motors was rated "Market Perform" after it was found to be losing approximately 7.5% in EBITDA, or Rs 11,000 per vehicle, despite generating a gross profit margin of 7% without subsidies. <div type="Article" hostid="261" msid="113631992" title="Tata Nexon EV with a bigger battery launched starting at ₹13.99 lakh" mstype="2" mssubtype="0"></div>Hero MotoCorp, a major player in India’s automotive market, lags behind both Bajaj and TVS in terms of its EV offerings. Bernstein also pointed out that Eicher Motors, which is expected to launch its own <keyword id="19895203" type="General" weightage="20" keywordseo="electric-vehicles" source="keywords">electric vehicles</keyword> soon, is likely to remain “sub-scale and less relevant” in the competitive EV landscape. Interestingly, <keyword id="19897349" type="General" weightage="20" keywordseo="Ola-Electric" source="keywords" meta.keywordsubtype="org" meta.entityname="Ola Electric" meta.hostid="265" meta.entityid="Ola Electric">Ola Electric</keyword> (Ola-E) stands out as a startup that has been able to generate positive operating earnings (EBITDA) from its premium models like the S1 Pro and S1 Air, even as it incurs losses on its mass-market model, the S1X. “Our analysis indicates that Ola-E is generating positive operating EBITDA from its premium models, such as the S1 Pro and S1 Air while incurring a loss on its mass-market model, the S1X,” the report said. While Ola has shown some promise, it too remains heavily dependent on subsidies to maintain its financial health. <h2>Long-term outlook</h2>Bernstein’s report paints a challenging picture for the future of India’s EV sector, suggesting that while dominant startups may survive, the majority of the competition will come from traditional automakers. However, without significant scale and continued cost reductions, the EV industry will struggle to become self-sustaining. <div type="Article" hostid="261" msid="113315022" title="Waiting for the festive season to buy an EV? Cabinet approves PM E-Drive subsidising most EVs, sans electric cars" mstype="2" mssubtype="0"></div>Bernstein emphasised that to truly compete with ICE vehicles, the EV sector needs to focus on scaling up operations, reducing costs, and maintaining long-term commitment. Until these conditions are met, India’s EV industry will remain highly dependent on government support and may continue to face an uphill battle for relevance. In conclusion, while India’s EV sector is seen as a vital part of the country’s clean energy future, Bernstein’s analysis highlights that it is far from being self-reliant. The industry’s heavy dependence on government incentives raises questions about its long-term sustainability and relevance, particularly in the face of ongoing challenges with profitability and scale. (With inputs from ANI)

Why has Bernstein called India’s EV sector 'irrelevant'?

IT firm <keyword id="20282491" type="General" weightage="20" keywordseo="Happiest-Minds-Technologies" source="keywords" meta.keywordsubtype="org" meta.entityname="Happiest Minds Technologies" meta.hostid="261" meta.entityid="Happiest Minds Technologies">Happiest Minds Technologies</keyword> reported a 24.83 per cent increase in consolidated net profits at Rs 71.98 crore for the quarter ended March 2024, and said it expects to encash on its newly launched GenAI business unit. According to a stock exchange filing, the company clocked a profit of Rs 57.66 crore in the year-ago period. Revenue from operations for the reporting quarter stood at Rs 417.29 crore, as against Rs 377.98 crore in Q4FY23, translating into a 10.4 per cent rise. Revenue for the quarter was led by the edutech vertical (22.3 per cent), followed by healthcare (16.1 per cent). Executive chairman Ashok Soota said the newly created Gen AI business unit, the creation of six new industry groups, and the successful closure of two acquisitions have put the company back on course towards accomplishing its 'long-term vision of USD 1 billion in revenues by FY31'. Annual profits saw a 7.53 per cent rise to Rs 248.39 per cent, as compared to the previous fiscal's Rs 230.99 crore. Revenue for financial year 2023-24 was at Rs 1,624.66 crore, a 13.66 per cent climb over FY23's Rs 1,429.29 crore. "Happy to report a full-year revenue growth in constant currency of 11 per cent and EBITDA of 24.6 per cent. I am proud of our performance, especially in the face of a challenging year faced by our industry. "Acquisition of PureSoftware Technologies and Macmillan Learning should help us in our growth story while delivering value to all our stakeholders," MD and CFO Venkatraman Narayanan said. He gave an estimated growth guidance of 35-40 per cent for FY25. Happiest Minds Technologies has signed a definitive agreement to acquire 100 per cent equity interest in PureSoftware Technologies for a total purchase consideration of Rs 779 crore. The acquisition is expected to be completed before May 31, 2024. The company's headcount as of Mar 31, 2024 was 5,168, at an attrition of 13 per cent. "For FY24, part of our headcount has come from the campus batch... our latest batch is ready for deployment... for fresher hiring, we are being agile in approach in going back to campus, we will take a call around August... Given the nature of digital space, there is wide range of technologies... and based on the demand, we do need to go and bring people on board," <keyword id="20282489" type="General" weightage="20" keywordseo="joseph-anantharaju" source="keywords">Joseph Anantharaju</keyword>, executive vice chairman, said. He further said the company's deal pipeline continues to be strong, "there was a dip in Q3 but Q4 was reflective of the changes that we made... our efforts around GenAI are really paying off". In October last year, the company established a new business unit, Generative AI Business Services (GBS). Soota said foray into GenAI is a transformational opportunity for the company. Anantharaju said the IT firm expects to see growth through account expansion and 'aggressive account mining'. Pre-tax profit (EBIT) at Rs 96.15 crore was up 21.18 per cent year-on-year. Soota, during the company's press conference, said FY25 is poised to be the company's best year since its IPO. The company recommended a final dividend of Rs 3.25 per equity share of Rs 2 each for the financial year ended March 31, 2024, subject to shareholders approval. SEE ALSO:<a href="https://www.businessinsider.in/stock-market/webstories/indegene-ipo-company-details-to-risk-factors-all-you-need-to-know/slidelist/109888922.cms" target="_blank"></a> <a href="https://www.businessinsider.in/stock-market/webstories/indegene-ipo-company-details-to-risk-factors-all-you-need-to-know/slidelist/109888922.cms" target="_blank">Indegene IPO: Company details to risk factors, all you need to know</a><a href="https://www.businessinsider.in/tech/news/worldwide-tablet-shipments-grow-in-q1-2024-after-two-years-of-decline/articleshow/109876390.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/news/worldwide-tablet-shipments-grow-in-q1-2024-after-two-years-of-decline/articleshow/109876390.cms" target="_blank">Worldwide tablet shipments grow in Q1 2024 after two years of decline</a><a href="https://www.businessinsider.in/tech/news/asus-zenbook-duo-review/articleshow/109875023.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/news/asus-zenbook-duo-review/articleshow/109875023.cms" target="_blank">Asus ZenBook Duo review – an excellent dual-screen laptop for multitaskers</a>

Happiest Minds Tech Q4 profit up 25% to ₹72 cr, co hopes to see growth in GenAI vertical

<ul><li>In constant currency terms, <keyword id="13843427" type="General" weightage="20" keywordseo="ltimindtree" source="Orion">LTIMindtree</keyword> posted revenue growth of 8.2% YoY for the June quarter. </li><li>The order inflow continued to increase and reached $1.41 billion in this quarter. </li><li>“Our operational rigor helped us achieve an EBIT of 16.7% and PAT of 13.2%," said Debashis Chatterjee, CEO and MD. </li></ul> Technology consulting and digital solutions company LTIMindtree posted a 4.1% year-on-year rise in net profit to ₹1,152 crore for the first quarter ended June 30. Revenue rose 13.8% to ₹8,702 crore for the period. In constant currency terms, the company’s revenue rose 8.2% YoY for the June quarter. On a quarter-on-quarter basis, however, this revenue was almost flat at 0.1% growth. “Our key verticals BFSI (banking, financial services and insurance), Manufacturing &amp; Resources and Hi-Tech, Media, and Entertainment, which make up 75% of our revenues performed well,” said Debashis Chatterjee, chief executive officer and managing director. “Our strategic programs are bearing fruit and is evident in the upward movement across our client buckets. The order inflow continued to increase and reached $1.41 billion in this quarter,” he added. The company has 723 active clients as of June 30, 2023. During the quarter, $5 million+ clients increased by 18 on a YoY basis, while $10 million+ clients increased by 9 and $50 million+ clients increased by 3. “Our operational rigor helped us achieve an EBIT of 16.7% and PAT of 13.2%," Chatterjee added. EBIT is earnings before interest and taxes, while PAT refers to profit after tax. At the end of the quarter, the company had 82,738 professionals with the trailing 12 month attrition at 17.8%. Among the deals won during the quarter are a deal from one of the largest property &amp; casualty insurance companies in the United States, which has chosen LTIMindtree as a strategic partner for a multi-year application development and maintenance deal. Shares of the company were trading 2.5% lower at ₹5,006 in morning trade on the NSE. Meanwhile, the Nifty50 was up 0.45%.

LTIMindtree Q1 net profit rises 4.1% to ₹1,152 crore, revenue up 14% YoY

<ul class="summary-list"><li>Tesla stock fell 8% after the company reported third-quarter earnings that missed analyst expectations.</li><li>Wall Street was unimpressed by the results and comments from Elon Musk about the future of the Cybertruck.</li></ul><a href="https://markets.businessinsider.com/stocks/tsla-stock">Tesla</a> stock dropped as much as 8% on Thursday as investors reacted to third-quarter results <a href="https://www.businessinsider.com/tesla-earnings-q3-report-live-updates-guidance-analyst-call-stock-reaction-2023-10">that missed analyst expectations,</a> and some analysts are ringing the alarm bell.<a href="https://markets.businessinsider.com/news/stocks/elon-musk-tesla-quotes-cybertruck-optimus-banks-debt-real-estate-2023-10">Comments from Tesla CEO Elon Musk during the conference call</a> didn't reassure investors either, with Musk warning that the ramp-up of production for the Cybertruck will be incredibly difficult. "We dug our own grave with Cybertruck. Nobody digs a grave better than themselves," Musk said.Here's how Wall Street analysts are reacting to Tesla's third-quarter report. <h3>JPMorgan: 'Nearly ~$800 billion valuation looks increasingly unsustainable'</h3>Analysts highlighted that even after a slew of price cuts on all of its vehicles, Tesla was still unable to deliver more vehicles. That could point to an underlying issue with demand, according to JPMorgan."We think it is important to remind investors that Tesla has not sold more vehicles than was earlier expected as a result of the 15-20% price cuts it has implemented across its lineup in all global markets. Rather, Tesla has had to institute these price cuts only to sell fewer vehicles than analysts earlier expected," JPMorgan said.The bank also noted that Tesla's third-quarter EBIT margin of 7.5% is no longer a standout among other automakers, with Ford and General Motors seeing similar margins of 8.4% and 7.2% in the second quarter, respectively.After the third-quarter earnings results, Tesla's "nearly $800 billion valuation looks increasingly unsustainable with EBIT margin and revenue growth now at or below recent General Motors and Ford levels and [its] year-to-date free cash flow yielding just 0.4%," JPMorgan said.JPMorgan reiterated its "Underweight" rating and $135 price target, representing potential downside of 40% from current levels.<h3>Wedbush: 'mini disaster'</h3>Analyst Dan Ives said Tesla's conference call was "not an inspiring one for the bulls" as Musk highlighted the challenges about falling profit margins and the production roadmap of the Cybertruck. "We would characterize last night's conference call as a 'mini disaster' as the Street wanted to get their arms around the falling margins and constant price cuts seen globally, but instead we heard from a much more cautious Musk which focused on a higher interest rates, FSD/AI investments, and highlighting the difficult path for Cybertruck production over the next 12 to 18 months," Ives said. Also not encouraging for Tesla bulls is the fact that Musk said further vehicle price cuts could be possible as amid a difficult macro economic environment.Wedbush reiterated its "Outperform" rating but lowered its price target to $310 from $350, representing potential upside of 38% from current levels.<h3>Bank of America: 'ongoing risk from price cuts'</h3>BofA said downtime at its factories and price cuts were a double whammy that weighed on profits."There is ongoing risk from price cuts aimed at improving affordability for a much larger set of consumers," analysts warned."We reiterate our Neutral rating on Tesla, balancing near-term risks from the broader macro, increasing competition, and the impact of recent price cuts against its efforts to reduce costs, meaningfully grow, and unique ability to remain agile," the bank said.Bank of America also lowered its price target to $290 from $300, representing potential upside of 29% from current levels.

'Valuation looks increasingly unsustainable': Here's how Wall Street is reacting to Tesla's third-quarter earnings miss

<ul class="summary-list"><li>US stock investors are headed for disappointment, a Federal Reserve researcher has warned.</li><li>Corporate-tax and interest-rate cuts boosted stock returns for years, Michael Smolyansky said.</li></ul>Investors in US stocks have enjoyed a brisk tailwind for decades, but their luck is about to run out, a Federal Reserve researcher has warned.Michael Smolyansky, a principal economist at the Fed, recently published a <a href="https://www.federalreserve.gov/econres/feds/files/2023041pap.pdf" target="_blank" rel="noopener">working paper</a> titled: "End of an era: The coming long-run slowdown in corporate profit growth and stock returns."His key finding is the S&amp;P 500's real return of 5.5% (excluding dividends) between 1989 and 2019 was mostly fueled by declines in <a href="https://markets.businessinsider.com/news/stocks/fed-rate-cut-decision-fomc-first-time-since-financial-crisis-2019-7-1028403223">interest rates</a> and <a href="https://www.businessinsider.com/trump-gop-tax-cuts-economic-gdp-business-investment-failure-2020-1">corporate tax rates</a>, which are unlikely to be repeated in the years ahead.Stock prices <a href="https://markets.businessinsider.com/news/stocks/big-short-michael-burry-stocks-crypto-bitcoin-earnings-multiple-compression-2022-7">typically rise</a> because corporate profits grow or price-to-earnings (P/E) multiples expand. Smolyansky found that reductions in corporate tax and interest rates accounted for over 40% of the real growth in corporate profits between 1989 and 2019.Moreover, lower interest rates translated into lower risk-free rates (the guaranteed return from assets such as US Treasuries), which explained all of the expansion in P/E multiples during the three-decade period."Investors therefore got lucky," Smolyansky wrote. "I contend that this spell of good luck is most likely at an end."Interest rates sunk to historic lows even before the COVID-19 pandemic struck in early 2020. There's little scope to take them any lower, especially given the renewed threat of <a href="https://www.businessinsider.com/personal-finance/what-is-inflation">inflation</a>, Smolyansky said.Meanwhile, the effective corporate tax rate for S&amp;P 500 non-financial firms dropped from 34% in 1989 to 15% by 2019. Further cuts seem unlikely given the US debt-to-GDP ratio is near a record high, and the Biden administration <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-top-tax-payer-biden-law-2022-9">imposed</a> a minimum tax rate of 15% last year, the researcher said.Even if corporate tax and interest rates hover around their 2019 lows in the years ahead, corporate profits will only grow at the same rate as earnings before interest and tax (EBIT), Smolyansky said. EBIT growth lagged GDP growth in the US between 1962 and 2019, so it's unlikely to grow more than 2% a year in the long run, he continued. P/E multiples <a href="https://markets.businessinsider.com/news/stocks/leon-cooperman-economy-financial-crisis-svb-collapse-stocks-fed-inflation-2023-3">can't expand endlessly either</a>, he added."This has serious implications for stock returns," Smolyansky said. "If real earnings growth is not likely to exceed 2% per year over the long run, then the outlook for stocks is bleak.""Both stock returns and corporate profit growth are very likely to be substantially lower in the future," he added. The economist described the decades-long boost to earnings growth from tax cuts and interest-rate cuts as "a trend that has reached its limits."Smolyansky cautioned that his grim outlook is likely conservative. If the stock market isn't already pricing in lower earnings growth, P/E multiples could contract sharply once it does, he said. Moreover, declines in interest and corporate tax rates may have stimulated EBIT growth in recent decades, paving the way for an even greater slowdown than he's predicted."The risks to this forecast, if anything, are to the downside," he said.

Get ready for years of terrible stock-market returns as 2 key tailwinds fade, Fed economist warns

<ul class="summary-list"><li>Tesla was the most shorted US large-cap stock for the third consecutive month in August, securities firm Hazeltree said.</li><li>Charter Communications and Apple were the second and third most shorted large-cap names.</li></ul><a href="https://markets.businessinsider.com/stocks/tsla-stock">Tesla</a> was the most shorted large-cap stock in US markets last month, securities firm Hazeltree found in a new report.Researchers wrote that Elon Musk's EV maker topped the list for the third consecutive month. A short position means investors are betting that the share price of a company will decline. The second and third most popular large-cap stocks to short were <a href="https://markets.businessinsider.com/stocks/chtr-stock">Charter Communications</a> and <a href="https://markets.businessinsider.com/stocks/aapl-stock">Apple</a>, respectively, according to Hazeltree, which tracks 12,000 equities around the world. Musk took to <a href="https://x.com/elonmusk/status/1701342980114706613?s=20" target="_blank" rel="noopener">X</a> on Monday in response to an article about Bill Gates' previous short position against Tesla. "Taking out a short position against Tesla, as Gates did, results in the highest return only if a company goes bankrupt!" Musk wrote. "Gates placed a massive bet on Tesla dying when our company was at one of its weakest moments several years ago. Such a big short position also drives the stock down for everyday investors."Meanwhile, <a href="https://markets.businessinsider.com/news/stocks/tesla-stock-price-dojo-supercomputer-morgan-stanley-upgrade-note-tsla-2023-9">Tesla stock surged as much as 10% on Monday</a> after Morgan Stanley published a bullish research note and upgraded it to "Overweight."Tesla has lofty upside potential because of its Dojo supercomputer, which the bank thinks could add another $500 billion to the company's market cap."The same forces that have driven AWS to reach 70% of Amazon total EBIT can work at Tesla, in our view, opening up new addressable markets that extend well beyond selling vehicles at a fixed price," analyst Adam Jonas said. "The catalyst? Dojo, Tesla's customer supercomputing effort in the works for the past 5 years."

Tesla is the most shorted stock in the market - and investors have bet against it more than any other name for 3 straight months

<ul><li>Sector watchers anticipate robust double-digit year-over-year revenue growth for most 4-wheeler companies </li><li>Analysts are optimistic about <keyword id="42747" type="General" weightage="20" keywordseo="tata-motors" source="Orion">Tata Motors</keyword>’ profit margins due to strong JLR sales. </li><li>Sales volumes of two-wheelers (2W) have experienced a slight year-on-year decline. </li></ul>The <keyword id="46265" type="General" weightage="20" keywordseo="auto-sector" source="Orion">auto sector</keyword> has been recovering, albeit slowly, after the pandemic. The second quarter of the current financial year (FY2024) saw wholesale trends exhibit a mixture of outcomes, with most segments experiencing an increase in sales volumes. Three-wheeler (3W) sales showed a significant year-on-year (Y-o-Y) recovery, while passenger vehicles (PV) saw growth in the mid-single digits, according to the India Autos report by BNP Paribas. However, sales volumes of two-wheelers (2W) experienced a slight year-on-year decline. A closer look at retail volume market share shows that in the 2W segment, <keyword id="6359783" type="General" weightage="20" keywordseo="bajaj-auto" source="Orion">Bajaj Auto</keyword> lost 2.3 percentage points in market share when compared to the same period the year before, while Honda Motorcycle &amp; Scooter India lost 0.9% market share. Meanwhile TVS Motor Company and Suzuki gained market share by 1.7 and 1.1 percentage points respectively in the same time period. In the PV segment, <keyword id="50805" type="General" weightage="20" keywordseo="mahindra-and-mahindra" source="Orion">Mahindra and Mahindra</keyword>, Toyota and <keyword id="44883" type="General" weightage="20" keywordseo="maruti-suzuki" source="Orion">Maruti Suzuki</keyword> India gained market share of 1.6, 1 and 1 percentage points respectively year-on-year, while Tata Motors and Kia lost market share by 0.6 and 1.1 percentage points respectively. Experts anticipate robust double-digit year-over-year revenue growth for most companies, with the exception of Bajaj Auto and Hero MotoCorp Limited. Substantial volume growth in the last quarter has been observed, except for the 2W segments, which has allowed them to take advantage of operational efficiency and a favourable product mix. <cmsannotation type="cmsannotation" annotationid="Analysts are optimistic about Tata Motors’ profit margins" comment="Subhead" text="Analysts are optimistic about Tata Motors’ profit margins">Analysts are optimistic about Tata Motors’ profit margins</cmsannotation> Analysts at BNP Paribas are optimistic about Tata Motors' profit margins due to strong Jaguar Land Rover (JLR) sales. In regards to other companies, they expect mixed or in-line results when compared to consensus expectations. The analysts take a pessimistic stance on the two-wheeler (2Ws) sector, citing expectations of persistently low growth, subdued festive seasons, the disruptive influence of electric vehicles (EVs), and heightened competition that could negatively impact the sector's profitability. However, they express preference for passenger vehicle original equipment manufacturers (OEMs) such as Maruti Suzuki, Mahindra and Mahindra, as well as globally-oriented companies like Tata Motors. These companies are better positioned to achieve sales growth and maintain healthy margins during the economic upswing, particularly due to their disciplined pricing strategies. Price targets (TPs) for select stocks have been increased, taking into account the shift in their valuation basis to September 2024, recent demand trends, and the inclusion of valuation related to Hero MotoCorp's (HMCL) financing subsidiary. They highlight that Maruti remains their top choice among the investments. <cmsannotation type="cmsannotation" annotationid="Expectations for different automakers" comment="Subhead" text="Expectations for different automakers">Expectations for different automakers</cmsannotation> <cmsannotation type="cmsannotation" annotationid="Maruti Suzuki" comment="Subhead" text="Maruti Suzuki">Maruti Suzuki</cmsannotation> For Maruti Suzuki , analysts recommend a "BUY" with a target price set at ₹13,000, while the current price is at ₹12,700. This is based on a price-to-earnings (P/E) ratio of 29 times the estimated earnings per share (EPS) for September 2025. The target multiple remains the same, but it has been adjusted for the next quarter. The target multiple is based on the five-year average next twelve months (NTM) P/E, as per Bloomberg consensus estimates, to account for a gradual recovery in the demand cycle. The target price has increased due to the forward adjustment in valuation. <cmsannotation type="cmsannotation" annotationid="Mahindra &amp; Mahindra" comment="Subhead" text="Mahindra &amp; Mahindra">Mahindra &amp; Mahindra</cmsannotation> For Mahindra &amp; Mahindra, the recommendation is a "BUY" with a target price of ₹1,905 (current price: ₹1,930). The valuation includes a sum-of-the-parts (SoTP) approach, with a target multiple similar to that of Escorts for the Farm Equipment Sector (FES). In the automotive sector, the target multiple is also unchanged and rolled forward by a quarter. A holding company discount of 10% is applied, similar to Escorts. However, there's a 20% discount compared to peers Maruti Suzuki (MSIL) and Ashok Leyland (AL) due to concerns about automotive market share loss. The target price has slightly decreased due to earnings estimate cuts offsetting the roll-forward of the valuation. <cmsannotation type="cmsannotation" annotationid="Bajaj Auto" comment="Subhead" text="Bajaj Auto">Bajaj Auto</cmsannotation> For Bajaj Auto, the recommendation is "HOLD" with a target price of ₹4,900 (current price: ₹4,600). The valuation is based on a sum-of-the-parts (SoTP) approach using a 16x target multiple for Bajaj Auto's internal combustion engine (ICE) business in September 2025. The Electric Vehicle (EV) business is valued at 2.3x the estimated EV revenue for the same period. The target multiple for EV aligns with global EV companies' market cap/revenue multiples for December 2025. The target price has risen due to higher earnings estimates and a valuation base shift. Additionally, the value of Bajaj's stake in Pierer Bajaj AG, with holdings in PIERER Mobility AG, is included in the assessment. <cmsannotation type="cmsannotation" annotationid="Tata Motors" comment="Subhead" text="Tata Motors">Tata Motors</cmsannotation> Tata Motors gets a "BUY" recommendation with a target price of 770, mirroring the current price. The valuation relies on a sum-of-the-parts (SoTP) method, averaging various valuation methods, such as EV/Sales, EV/EBITDA, EV/EBIT, and P/E ratios. The multiples remain the same, but the valuation base is extended by a quarter. Different valuation multiples are applied to segments like JLR, China JV, Passenger Vehicles (PV), and Commercial Vehicles (CV), considering their estimated sales, EBITDA, EBIT, and EPS for September 2025. These multiples are benchmarked against similar companies, with target multiples discounted by 20% for JLR and China JV, and 50% for CV and PV. The Electric Vehicle (EV) business valuation is based on the last funding round average with a 30% discount, and the target price remains unchanged.

PV sales to shift gears courtesy festive season but 2-wheelers’ struggles to continue

<ul><li>Mid-tier companies like L&amp;T Technology Services, Persistent Systems and Coforge are expected to report better growth than IT majors, say analysts. </li><li>Most of them are largely expected to deliver either a flat or a slight QoQ improvement in margins, with the exception of Cyient. </li><li>LTTS, which will see the full impact of SWC acquisition this quarter, is expected to deliver double-digit revenue growth but its margins are expected to be impacted. </li></ul>The Indian IT sector is bracing itself for a tough quarter and a year ahead, as organisations across the world are cutting down their discretionary spends, thanks to an uncertain economic outlook. Most IT sector companies are expected to present a muted earnings report card for the first quarter of FY24. Within the IT pack, mid-tier companies like L&amp;T Technology Services (LTTS), Persistent Systems and Coforge are expected to show better growth <a href="https://www.businessinsider.in/business/corporates/news/it-companies-like-tcs-infosys-wipro-hcl-tech-q1-2023-24-earnings-preview/articleshow/101482733.cms">as compared to their larger peers</a>. Tata Consultancy Services (TCS) and Infosys are expected to show a flat revenue growth in constant currency (CC) terms QoQ, while Wipro is expected to post a decline. The rest of the midcap universe, however, is expected to present fair growth with the exception of Cyient and Mphasis, which are likely to see declines. “Mid-tier IT growth premium is expected to continue with sequential growth performance led by Persistent Systems. The laggard in mid-tier IT will be Mphasis with an expectation of a sequential decline,” said a report by HDFC Securities. Q1FY24 projections for QoQ revenue growth in CC terms <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nuvama </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IIFL Securities </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Axis Cap </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">LTTS </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">11.8% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">11.1% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">12.3% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Cyient </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-2.4% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-2.6% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">NA </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Coforge </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.4% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.9% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Persistent Systems </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.6% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.9% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mphasis </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">NA </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-2% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1% </td></tr></tbody><tbody></tbody><tbody></tbody></table>Source: Research reports Best amongst equals Like their larger peers, most of the midcap companies are also expected to see either a flat or a slight de-growth in margins, in spite of tailwinds from rupee depreciation. High wage costs will most likely eat into the margins of most tech companies, including the bigger ones. Mphasis, which is largely expected to report a revenue decline, is expected to deliver a better performance in terms of margins. “EBIT margin expected to be up slightly, by 10 bps QoQ, due to higher offshore mix and operational efficiencies despite revenue drag,” said IIFL Securities. EBIT refers to earnings before interest and taxes. LTTS, which will see the full impact of SWC acquisition this quarter, is expected to deliver double-digit revenue growth but its margins are expected to be impacted. The company acquired Smart World &amp; Communication (SWC) Business of L&amp;T in January 2023. “Organic margin to see strength aided by revenue growth but reported margin to see a dip of around 170 bps QoQ led by the impact of SWC integration,” says a report by Axis Capital. In spite of a bleak sectoral outlook, most analysts are closely watching how the second half of the year will pan out. They will be paying close attention to the deal commentary, growth that’s to be seen in the top clients, and hiring and attrition trends to hunt for any silver lining in the dark clouds. SEE ALSO <a href="https://www.businessinsider.in/business/corporates/news/it-companies-like-tcs-infosys-wipro-hcl-tech-q1-2023-24-earnings-preview/articleshow/101482733.cms">IT sector Q1 earnings preview: All eyes on deal wins, revenue guidance cuts</a> <a href="https://www.businessinsider.in/business/news/fmcg-q1fy24-preview-dilemma-between-price-cuts-and-volume-growth/articleshow/101519331.cms">FMCG sector Q1 preview — Caught between price cuts and volume growth</a>

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