<ul><li><keyword id="620690" type="General" weightage="20" keywordseo="Infosys-share-price" source="Orion">Infosys share price</keyword> surged over 4% in early trade, after the company’s Q2 show and revised FY23 guidance.</li><li><keyword id="6354512" type="General" weightage="100" keywordseo="infosys" source="Orion">Infosys</keyword> also announced ₹9,300 crore worth share buyback programme, offering a 30% premium over October 13’s closing price.</li><li>Infy’s commentary has also resulted in brokerages increasing the stock’s target price with an upside of up to 33%.</li></ul>IT major Infosys’ shares surged by over 4% in early trade today after the company<a href="https://www.businessinsider.in/business/corporates/news/infosys-reports-4-revenue-growth-in-constant-currency-announces-9300-crore-worth-buyback-of-shares/articleshow/94838572.cms"> reported better-than-expected earnings in Q2</a> and announced a share buyback programme worth ₹9,300 crore. The sharp surge in Infosys shares comes a day after the IT major reported revenue growth on the back of $2.7 billion worth large deal wins. The company also raised revenue growth guidance for FY23 to 15-16%, from the 13-15% that it had announced at the end of FY22. “Infosys' Q2 results were above estimates driven by margin expansion. Deal wins at a seven-quarter high and healthy hiring trends offer comfort on growth,” said a report by Jefferies, maintaining its ‘buy’ rating on the stock, adding that even though its current valuation is at a premium to its 10-year average, the company’s growth outlook justifies it. Infosys’ revenue growth in constant currency terms came in at 4% sequentially, and 18.8% on a year-on-year basis, in line with analyst expectations. Digital revenues, which account for 61.8% of its total revenues, grew 31.2% year-on-year in constant currency. Global brokerage Credit Suisse said in a note that the large share of digital services in Infosys’ revenue mix could reduce the impact of the slowdown in IT services growth in FY24 when compared to its peers. Overall, Infosys’ revenue grew 6% sequentially to ₹36,358 crore, while net profit surged 12.3% to ₹6,021 crore. Infosys also announced ₹9,300 crore worth share buyback programme at ₹1,850 per share – this was at a premium of 30% over yesterday’s closing price. <div type="image" title="Infosys 01_01_22 to 14_10_22." msid="94851143" hostid="261" caption="&amp;lt;p&amp;gt;Infosys share price in 2022 so far&amp;lt;/p&amp;gt;"></div> Here’s what brokerages recommend: <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Brokerage </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Rating </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Target price </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Upside </td></tr><tr><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Edelweiss Research </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,891 </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">33% </td></tr><tr><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">CLSA </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,800 </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">27% </td></tr><tr><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Jefferies </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,700 </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">20% </td></tr><tr><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Credit Suisse </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Outperform </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,710 </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">20% </td></tr><tr><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Citi </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,685 </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">19% </td></tr><tr><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nomura </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,640 </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15% </td></tr><tr><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">JP Morgan </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Neutral </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,600 </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">13% </td></tr><tr><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">BofA Securities </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Neutral </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,535 </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8% </td></tr><tr><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">UBS </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Neutral </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,490 </td><td style="border-left:solid #000000 0.9978225000000001pt;border-right:solid #000000 0.9978225000000001pt;border-bottom:solid #000000 0.9978225000000001pt;border-top:solid #000000 0.9978225000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5% </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> Note: Upside compared to the closing price of ₹1,419.90 on October 13, 2022 SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/infosys-reports-4-revenue-growth-in-constant-currency-announces-9300-crore-worth-buyback-of-shares/articleshow/94838572.cms">Infosys reports 4% revenue growth in constant currency, announces ₹9,300 crore worth buyback of shares</a> <a href="https://www.businessinsider.in/business/corporates/news/it-cos-go-slow-on-hiring-despite-high-attrition-rates-hiring-down-57-in-q2/articleshow/94832706.cms">IT cos go slow on hiring despite high attrition rates, hiring down 57% in Q2</a> <a href="https://www.businessinsider.in/stock-market/news/wipro-is-the-top-loser-on-the-exchanges-while-hcl-tech-is-the-top-gainer/articleshow/94827205.cms">HCL Tech surges on better than expected earnings, Wipro hits 52-week low on disappointing Q3 guidance</a>

Infosys shares surge after Q2 results, ₹9,300 crore buyback announcement

<ul><li><keyword id="6354512" type="General" weightage="20" keywordseo="infosys" source="Orion">Infosys</keyword> is expected to report a 4% Q-o-Q revenue growth for the second quarter, says a Jefferies report.</li><li>The report also says that Infosys is expected to announce a buyback along with its second-quarter results.</li><li>TCS is expected to post the best margin improvement among IT companies of upto 50 basis points.</li><li>All eyes on Infosys, HCL Tech, and Coforge for any revision in FY23 guidance.</li></ul>IT major Infosys is expected to report a 4% quarter-on-quarter revenue growth in constant currency for the second quarter of FY23, according to a Jefferies report. This growth will be driven by deal ramp ups and seasonal strength, says the research firm, which estimates the Indian <keyword id="46964" type="General" weightage="20" keywordseo="it-sector" source="Orion">IT sector</keyword> revenue growth at 3.6% for the quarter. The report also said the Bangalore-based IT firm was expected to announce a buyback along with the second quarter results on October 13. A buyback reflects the company’s optimism about its own stock and is increasingly used by companies to reward shareholders. It also reduces the outstanding shares in the system and boosts the stock price. Along with all IT stocks, Infosys’ stock price too was battered for the last six months as it fell by over 35% on fears of recession in its biggest market, the US. Jefferies, however, shares some of the optimism of the Infosys management on the company’s prospects as it believes that it is ‘better placed’ to handle cross-currency headwinds – the Pound and Euro have been depreciating while the Dollar has been appreciating. “We expect EBIT margins to expand by 30bps QoQ, driven by pyramiding, operating leverage and pricing benefits, amidst supply side pressures, higher costs and continued investments in growth. We expect Infosys to retain its 14-16% YoYcc (constant currency) revenue growth guidance and 21-23% margin guidance,” said a Jefferies report. Wipro too is expected to match Infosys’ revenue growth, on an inorganic basis. TCS to lead in margins TCS is expected to post the best margin improvement of up to 50 basis points, much higher than the sectoral estimates of 30 basis points. “We estimate EBIT margins to improve by 50bps QoQ to 25.6%, driven by pyramiding, operating leverage and pricing benefit, amidst continued pickup in travel/discretionary expenses and supply side pressures,” the report said. Jefferies estimates TCS’ revenue to grow at 3.5% in constant currency for the quarter. Most other IT companies will continue to face the pressures of wage hikes and high attrition. A recent report by TeamLease predicts up to 55% growth in contract staffing attrition for FY23 as compared to 49% in FY 2022. “We expect wage hikes at HCL Tech, Wipro, TechM, and Mindtree; continued supply-side pressures; and higher travel costs to weigh on margins. However, this is likely to be offset by benefits from improved pyramid, operating leverage, and pricing and recovery of some one-off costs in the previous quarter,” the report said. Demand trends going ahead The recent <a href="https://www.businessinsider.in/business/corporates/news/accentures-disappointing-q1-and-fy23-forecasts-indicate-more-pain-for-the-it-sector/articleshow/94392402.cms">revenue forecast given by Accenture of</a> 8-11% for FY23 has sounded alarm bells across the IT sector, as it was below estimates. “Given increasingly high odds of global recessions, investors remain worried about the likely impairment on tech spending, which has driven (a) correction across the sector through CY22YTD,” said a report by JM Financial. The research firm suggests that the focus must shift to near-term demand trends. “A few Tier II techs have been suggesting about possibilities of certain client- specific challenges and higher- than-expected furloughs in 3QFY23,” the JM Financial report said. However, it believes that the supply-side headwinds ‘are easing somewhat’. Jefferies also says that the focus will be on management commentary on the demand environment. “Commentary around deal pipeline, sales cycle, nature of deals and deal tenure, pricing, and vendor consolidation will be keenly watched. Furthermore, there will be a strong focus on commentary around client budgets or reprioritisation of client spends,” it said. It will also be closely watching for a revision in FY23 guidance from Infosys, HCL Tech, and Coforge. However, it doesn’t expect it to happen as part of the second-quarter result announcements. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[]]></cdata></div> SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/rbis-interest-rate-hikes-not-over-yet-but-intensity-might-come-down/articleshow/94558336.cms">RBI’s interest rate hikes not over yet, but intensity might come down</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/real-estate-demand-may-take-a-hit-this-festive-season-after-rbis-rate-hike/articleshow/94555871.cms">Real estate demand may take a hit this festive season after RBI’s rate hike</a>

Infosys to lead IT sector’s Q2 show with 4% revenue growth, says Jefferies

NIFTY 50: What it means and the companies covered under this index

New Delhi, Mar 29 () Following are the top business stories at 1700 hours:DEL14 BIZ-IOC-LD FUELNo fuel crisis in India; enough stock of petrol, diesel, LPG available to last lockdown: IOCNew Delhi: India, the world's third largest energy consumer, has enough petrol, diesel and cooking gas (LPG) in stocks to last way beyond the three-week nationwide lockdown as all plants and supply locations are fully operational, Indian Oil Corp (IOC) Chairman Sanjiv Singh said.DCM1 BIZ-FPI-OUTFLOWCoronavirus scare: FPIs pull out over Rs 1 lakh cr in MarNew Delhi: As the coronavirus pandemic is triggering fears of a global recession, foreign investors have started rowing back from the Indian capital markets by withdrawing a massive over Rs 1 lakh crore in March after remaining net buyers for six consecutive months.DCM10 BIZ-UNION BANKUnion Bank expects Rs 2,500 cr benefits due to amalgamation : CEO Rajkiran Rai GMumbai: State-owned Union Bank of India, which is amalgamating Andhra Bank and Corporation Bank with it, hopes to reap cost benefits of over Rs 2,500 crore through rationalisation of branches and savings on technology on the combined entity. DCM13 BIZ-GOVT-CSR FUNDSContributions to PM relief fund will help cos meet CSR obligations, says govt officialNew Delhi: Corporates have spent Rs 52,000 crore towards social welfare activities in the last five financial years and now making contributions to the Prime Minister's relief fund will further help them meet their obligations under the companies law, according to a senior government official.DCM21 BIZ-PRADHAN-SAUDIPradhan speaks to Saudi Oil Min for uninterrupted crude, LPG suppliesNew Delhi: Oil Minister Dharmendra Pradhan on Sunday discussed global oil market developments and sourcing LPG with Saudi Energy Minister Prince Abdulaziz bin Salman to ensure uninterrupted fuel supplies in the world's third largest energy consumer.DCM27 BIZ-POWER DEMANDPeak power demand falls 28 pc to 117 GW in since March 20New Delhi: Peak power demand in the country dipped over 28 per cent to 117.76 gigawatts (GW) on Saturday as compared to 163.72 GW on March 20, showing the impact of nationwide lockdown amid COVID-19 outbreak.DCM9 BIZ-MARKET-OUTLOOKMarkets to focus on global cues, fresh news flow on Covid-19: AnalystsNew Delhi: Stock markets will focus on global cues and fresh news flow on Covid-19 pandemic for further cues in a holiday-shortened week ahead, according to analysts.DCM3 BIZ-STOCKS-MCAPSeven of top-10 most valued cos add Rs 1.23 lakh cr in m-cap; Infy, RIL leadNew Delhi: Seven of the top 10 most-valued Indian companies together added Rs 1,23,039.72 crore in market valuation last week, led by Infosys and Reliance Industries Limited (RIL).   RVK

Business highlights

New Delhi, Jan 13 () Following are the top business stories at 1818 hours:
 
DEL70 BIZ-INFLATION
Retail inflation jumps to 7.35 pc in Dec, crosses RBI's comfort level
New Delhi: Retail inflation jumped sharply to 7.35 per cent in December 2019, surpassing the RBI's comfort level, mainly due to high food prices, a government data showed on Monday.
 
DCM26 BIZ-LD WALMART-LAYOFF
Walmart sacks 56 employees, including 8 top execs; says no plan to exit India
New Delhi: World's largest retailer Walmart Inc on Monday said it has sacked 56 of its executives in India, including eight from senior management level, as it restructures its business in the country. 
 
DEL57 BIZ-RUPEE-CLOSE
Rupee extends gains by 8 paise to 70.86 against US dollar
Mumbai: The rupee rose 8 paise to settle at 70.86 against the US dollar on Monday as investor sentiment strengthened amid positive global cues and gains in domestic equity market.
 
DCM38 BIZ-GST-FRAUD
Revenue dept detects 931 GST fraud cases through data analytics
New Delhi: The Department of Revenue has identified 931 cases of fraudulent GST refund claims through data analytics and has now tasked the GST data analytics wing to scrutinise all past and pending refund claims filed all over the country for inverted duty structure, sources said. 
 
DEL55 BIZ-LD STOCKS
Benchmarks soar to record highs on earnings, global cues; Infy rallies 5 pc
Mumbai: The Sensex and Nifty vaulted to record highs on Monday as investors scooped up tech, banking and metal stocks amid a rally in global markets in anticipation of the US-China trade deal.
 
DCM37 BIZ-SEBI-LD CMD
Sebi extends deadline to Apr 2022 to split CMD post
New Delhi: Markets regulator Sebi has deferred by two years to April 2022 its directive for listed companies to split the roles of chairman and managing director in view of demand from corporates and to keep compliance burden lower in the wake of the current economic scenario. 
 
 
 
 
 
 SHW
SHW

<ul><li>The third quarter of the financial year is seasonally weak for IT companies. </li><li>The depreciation of the rupee will help margins but will be offset by wage hikes.</li><li>Growth in banking, financial services and insurance (BFSI) will continue to struggle as European banks remain weak and the US capital market is affected by tensions with Iran.</li></ul>The third quarter of the financial year is seasonally weak for IT companies, for some more than others. The depreciation of the rupee, however, might offer the much-needed cushion profit margins "Cross-currency movements were positive this quarter, mainly due to the strengthening GBP," says Harit Shah, an analyst with India Nivesh. In some cases, it might be offset by the loss of productivity during strikes; and employee costs. "Within the sector, tier-1 IT companies will deliver over 1.6% quarterly growth (7.5% annual) and tier-2 companies are expected to post over 2% quarterly growth or around 8% annually," predicts a report by HDFC Securities. This financial year has been one of transformation for IT giants as they chose to re-skill their employees. HCL Technologies and Wipro are cementing their business overseas with localisation and near-shore services. In addition to geographic expansion, they have also increased their platforms and partnerships to expand their respective portfolios. However, 'localisation' has costs and clients are turning tight-fisted in the midst of the global economic slowdown — adding extra pressure. However, what IT companies do not lack is demand. "We expect a steady 2020 as reflected in strong deal pipelines and continuity in large deal wins (TCS-Phoenix, INFY-Telenet, Siemens, Arlanxeo, Wipro-Olympus) and stable outlook/guidance increase by Accenture," said HDFC Securities report. European banks remain weak One of the core businesses that outsource are European banks and their finances continue to be weak. Nearly one-third of the IT sector's revenue comes from banking, financial services, and insurance (BFSI). This might impact the growth of Infosys and Wipro. "Growth outlook for the BFSI vertical, especially when the capital market (US) and large banks (Europe) are slowing within BFSI," remarks HDFC. The size of deals that IT companies might win could also shrink, due to Brexit. However, overall deal wins are likely to remain healthy. In addition, favourable cross-currency movements should boost revenue growth. "TCS and Tech Mahindra are likely to see the maximum impact owing to higher GBP billing exposure as compared to peers," predicts Shah. Single-digit growth All in all, most tech companies are expected to post single-digit growth in the third quarter. Out of the pack, HCL Technologies might turn out to be the biggest winner. "HCL Tech is expected to post strong growth of 4.6% quarter-on-quarter (QoQ) in dollar terms. The growth is expected to primarily come from HCL software and ramp-up of deals won in 2QFY20," predicts Niharika Ojha, an analyst at Narnolia. However, India Nivesh believes Tech Mahindra might come out on top. "Tech Mahindra is likely to lead the pack with 3.7% concurrent revenue growth, aided by the ramp-up of the AT&amp;T deal," predicts Shah. Infosys — bogged down by whistleblower allegations and speculation of insider trading — is expected to post a moderate quarterly growth of 1.9%. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.7421872500000001pt;border-right:solid #000000 0.7421872500000001pt;border-bottom:solid #000000 0.7421872500000001pt;border-top:solid #000000 0.7421872500000001pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;"> Company </td><td style="border-left:solid #000000 0.7421872500000001pt;border-right:solid #000000 0.7421872500000001pt;border-bottom:solid #000000 0.7421872500000001pt;border-top:solid #000000 0.7421872500000001pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Expected QoQ growth </td></tr><tr><td style="border-left:solid #000000 0.7421872500000001pt;border-right:solid #000000 0.7421872500000001pt;border-bottom:solid #000000 0.7421872500000001pt;border-top:solid #000000 0.7421872500000001pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Tata Elxsi </td><td style="border-left:solid #000000 0.7421872500000001pt;border-right:solid #000000 0.7421872500000001pt;border-bottom:solid #000000 0.7421872500000001pt;border-top:solid #000000 0.7421872500000001pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">5.30% </td></tr><tr><td style="border-left:solid #000000 0.7421872500000001pt;border-right:solid #000000 0.7421872500000001pt;border-bottom:solid #000000 0.7421872500000001pt;border-top:solid #000000 0.7421872500000001pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">HCL Tech </td><td style="border-left:solid #000000 0.7421872500000001pt;border-right:solid #000000 0.7421872500000001pt;border-bottom:solid #000000 0.7421872500000001pt;border-top:solid #000000 0.7421872500000001pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">4.60% </td></tr><tr><td style="border-left:solid #000000 0.7421872500000001pt;border-right:solid #000000 0.7421872500000001pt;border-bottom:solid #000000 0.7421872500000001pt;border-top:solid #000000 0.7421872500000001pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">L&amp;T Infotech </td><td style="border-left:solid #000000 0.7421872500000001pt;border-right:solid #000000 0.7421872500000001pt;border-bottom:solid #000000 0.7421872500000001pt;border-top:solid #000000 0.7421872500000001pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">3.40% </td></tr><tr><td style="border-left:solid #000000 0.7421872500000001pt;border-right:solid #000000 0.7421872500000001pt;border-bottom:solid #000000 0.7421872500000001pt;border-top:solid #000000 0.7421872500000001pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Mphasis </td><td style="border-left:solid #000000 0.7421872500000001pt;border-right:solid #000000 0.7421872500000001pt;border-bottom:solid #000000 0.7421872500000001pt;border-top:solid #000000 0.7421872500000001pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">2.50% </td></tr><tr><td style="border-left:solid #000000 0.7421872500000001pt;border-right:solid #000000 0.7421872500000001pt;border-bottom:solid #000000 0.7421872500000001pt;border-top:solid #000000 0.7421872500000001pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Mindtree </td><td style="border-left:solid #000000 0.7421872500000001pt;border-right:solid #000000 0.7421872500000001pt;border-bottom:solid #000000 0.7421872500000001pt;border-top:solid #000000 0.7421872500000001pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">2.20% </td></tr><tr><td style="border-left:solid #000000 0.7421872500000001pt;border-right:solid #000000 0.7421872500000001pt;border-bottom:solid #000000 0.7421872500000001pt;border-top:solid #000000 0.7421872500000001pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Tech M </td><td style="border-left:solid #000000 0.7421872500000001pt;border-right:solid #000000 0.7421872500000001pt;border-bottom:solid #000000 0.7421872500000001pt;border-top:solid #000000 0.7421872500000001pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">2.10% </td></tr><tr><td style="border-left:solid #000000 0.7421872500000001pt;border-right:solid #000000 0.7421872500000001pt;border-bottom:solid #000000 0.7421872500000001pt;border-top:solid #000000 0.7421872500000001pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Persistent </td><td style="border-left:solid #000000 0.7421872500000001pt;border-right:solid #000000 0.7421872500000001pt;border-bottom:solid #000000 0.7421872500000001pt;border-top:solid #000000 0.7421872500000001pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">2% </td></tr><tr><td style="border-left:solid #000000 0.7421872500000001pt;border-right:solid #000000 0.7421872500000001pt;border-bottom:solid #000000 0.7421872500000001pt;border-top:solid #000000 0.7421872500000001pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Wipro </td><td style="border-left:solid #000000 0.7421872500000001pt;border-right:solid #000000 0.7421872500000001pt;border-bottom:solid #000000 0.7421872500000001pt;border-top:solid #000000 0.7421872500000001pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">2% </td></tr><tr><td style="border-left:solid #000000 0.7421872500000001pt;border-right:solid #000000 0.7421872500000001pt;border-bottom:solid #000000 0.7421872500000001pt;border-top:solid #000000 0.7421872500000001pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Infosys </td><td style="border-left:solid #000000 0.7421872500000001pt;border-right:solid #000000 0.7421872500000001pt;border-bottom:solid #000000 0.7421872500000001pt;border-top:solid #000000 0.7421872500000001pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">1.90% </td></tr><tr><td style="border-left:solid #000000 0.7421872500000001pt;border-right:solid #000000 0.7421872500000001pt;border-bottom:solid #000000 0.7421872500000001pt;border-top:solid #000000 0.7421872500000001pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Mastek </td><td style="border-left:solid #000000 0.7421872500000001pt;border-right:solid #000000 0.7421872500000001pt;border-bottom:solid #000000 0.7421872500000001pt;border-top:solid #000000 0.7421872500000001pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">1.20% </td></tr><tr><td style="border-left:solid #000000 0.7421872500000001pt;border-right:solid #000000 0.7421872500000001pt;border-bottom:solid #000000 0.7421872500000001pt;border-top:solid #000000 0.7421872500000001pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">TCS </td><td style="border-left:solid #000000 0.7421872500000001pt;border-right:solid #000000 0.7421872500000001pt;border-bottom:solid #000000 0.7421872500000001pt;border-top:solid #000000 0.7421872500000001pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">1.10% </td></tr><tr><td style="border-left:solid #000000 0.7421872500000001pt;border-right:solid #000000 0.7421872500000001pt;border-bottom:solid #000000 0.7421872500000001pt;border-top:solid #000000 0.7421872500000001pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">L&amp;T Tech </td><td style="border-left:solid #000000 0.7421872500000001pt;border-right:solid #000000 0.7421872500000001pt;border-bottom:solid #000000 0.7421872500000001pt;border-top:solid #000000 0.7421872500000001pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">1.10% </td></tr></tbody></table>Source: India Equity Analysis, Narnolia Financial Advisors See also: <a href="https://www.businessinsider.in/business/corporates/news/us-iran-tensions-strengthen-dollar-giving-boost-to-indian-tech-stocks/articleshow/73081294.cms">US - Iran tensions strengthen dollar giving boost to Indian tech stocks</a> <a href="https://www.businessinsider.in/careers/news/benching-firing-and-re-deploying-the-story-of-20000-employees-at-tech-majors/articleshow/71934414.cms">Benching, firing and re-deploying — the story of 20,000 employees at tech majors</a> <a href="https://www.businessinsider.in/there-is-a-big-market-developing-for-indian-it-companies-at-home/articleshow/70991986.cms">There is a big market developing for Indian IT companies at home</a>

HCL Tech and Tech Mahindra may post better earnings as Euro bank crisis affects Infosys, Wipro

<keyword id="6369763" type="PERSON" weightage="100" keywordseo="Vishal-Sikka">Vishal Sikka</keyword>, the CEO of Indian tech giant, has something to say on the company's shockingly lower performance in the June quarter, which led to a quake in the stock markets on Friday. As per Sikka, the performance was not a result of his strategy to move Infy away from its focus on lowering costs for clients to developing innovative solutions for them; rather, it was the result of an execution failure in certain segments of the business. 
 
As per Sikka, he has begun taking steps to fix those failures. 
 
When asked about his failure in providing appropriate revenue guidance in April, Sikka said that one of the big areas which still needed to be addressed was to improve internal processes and make Infosys a real-time company, "including our ability to forecast." 
 
The humble performance in the June quarter had forced the company to mark down its revenue guidance for the full year from April’s 11.5-13.5% to 10.5-12%. In the stock market, Rs 23,000 crore of investor wealth was wiped out in a single day as a reaction to the modest performance from Infosys. 
 
Sikka told TOI that there is a structural threat over the traditional way of delivering services, and it is facing tremendous pricing pressure. He also cited the pricing pressure to two major developments; one of them is that the clients are under tremendous cost pressure, while second could be the significant growth in their ability to set up captive centres. 
 
Because of several leading global companies establishing their own technology centres in India, outsourcing volumes have taken a significant beating. 
 
"The wrong response to this, as I have been saying, is a downward spiral -- use cheaper and cheaper people and jam them more into projects faster and faster. That journey ends at one place -- at zero. The right response is to transform towards innovation. We need to take projects and services where software and automation that we deliver improves the productivity of the people and frees up people to deliver innovation. If we are not able to do such a transition, the industry will go down," Sikka said, while exclusively interacting with TOI after Q1 results were announced. 
 
Sikka also said that he has noted several trends that point to his strategy emerging as a success. For example, more than one-third of the revenue growth of $55 million in Q1 came from automation and innovation, new services of the company. 
 
He added that Skava, a platform for mobile websites, apps and other digital shopping experiences for large retail customers, and the Edge series of innovative cloud-based software applications for enterprises, both did well. 
 
Talking of issues, he said that the company ran into problems when it came to "small areas -consulting, package implementations, decline in India business and Finacle (banking product) and a flat BPO". 
 
"Because it's the first quarter and it has disproportionate effect on the overall year's performance, it has brought down the guidance. It has not changed the fact that our strategy is working," Sikka added. 
 
<a href="https://i.ytimg.com/vi/W3xLfHGuWn4/maxresdefault.jpg">Image source</a>

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