<ul><li><keyword id="30331" type="CITY" weightage="20" keywordseo="HCL-Technologies">HCL Technologies</keyword> is set to announced its first-quarter results on Friday, July 17.</li><li>Analysts expect a sharp drop in revenue and profit. </li><li>They also forecast that its unlikely that HCL Technologies will issue an annual guidance. </li></ul>After Tata Consultancy Services (TCS), Infosys and Wipro have already released there first-quarter earnings for 2020-21, HCL Technologies is set to announce its results on Friday, July 17. As with Wipro and Infosys, whose share prices showed positive anticipation of the Q1 earnings — HCL Technologies stock also started to rise during afternoon trade to 2% higher than yesterday’s closing. Even though the increase is marginal, it’s the highest that the company’s stock has been valued over the past month. <div type="image" title="hcl tech share price" msid="76997715" hostid="261" caption="&amp;lt;p&amp;gt;HCL Technologies share price over the last one month&amp;lt;/p&amp;gt;"></div> Savings from rupee value fall and work from home might not be enough Like with the other Indian IT services companies, analysts expect positive headwinds in terms of margin expansion from the fall in the value of the rupee and more employees working from which has allowed companies to save on expenses. The depreciation of the rupee helps since most of the IT companies earn in dollars. However, it remains uncertain whether the savings will be enough to cover pricing pressures and a decline in utilisation. Revenue and profit likely to be negatively affected by the coronavirus pandemic Quarterly growth and profit turnover is likely to be in the red as pressures of the coronavirus pandemic continue. The main factor to watch out for will be the new deals that HCL Technologies in bringing on board and how many new clients it was able to rope in in order to keep its deal pipeline healthy. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"><colgroup></colgroup><col /><col /><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;">Brokerage </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;">Expected drop in revenue QoQ </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;">Motilal Oswal </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;">-7.6% </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;">Nirmal Bang </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;">-3.7% </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;">ICICI 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;">-8% </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;">IDBI 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;">-8.2% </td></tr></tbody></table>Source: Brokerage preview reports Even though Infosys issued annual guidance during its earnings calls, analysts believe it’s unlikely that HCL Technologies will follow suit. “We expect the Product and Platforms business to show resilience while the IT services business is expected to soften,” said Nirmal Bang’s report. It, along with Motilal OswalOswals, added that a key vertical to watch will be engineering and R&amp;D services since pure plays by other companies — like Cyient and LTTS — have not had the best outcome. Last quarter, HCL Technologies announced that 50% of its employees will continue to work from home even after the lockdown. Investors will be on the lookout for any updates for management commentary around making any permanent changes to the operating model. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/infosys-company-profit-is-down-4-8-and-revenue-has-dipped-by-2-in-q1fy21/articleshow/76980089.cms">Infosys gives annual guidance of up to 2% growth this year as profit plummets by 4.8% and revenue dips 2% in Q1</a> <a href="https://www.businessinsider.in/careers/news/infosys-work-from-home-not-permanent-says-coo-pravin-rao/articleshow/76995155.cms">Infosys is still on the fence when it comes to making work from home a permanent change</a> <a href="https://www.businessinsider.in/business/corporates/news/tcs-infosys-wipro-and-tech-mahindra-what-to-expect-from-earnings/articleshow/76865753.cms">TCS and Infosys to face least impact — Indian IT companies likely to report sharp decline in revenue during first quarter</a>

Here’s what to expect from HCL Tech earnings

<ul><li>The strategy of Wipro’s new CEO, Theirry Delaporte, will be key in deciding the company’s outlook going forward.</li><li>Wipro is likely to wait out another quarter before issuing its annual guidance, according to analysts.</li><li>Brokerages expect Wipro’s revenue in the first quarter to drop by at least 7%.</li></ul>Wipro is set to report its first-quarter earnings on 14 July, and with other IT services companies in India, analysts expect a dip in revenues and profit — more so than its peers. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"><colgroup></colgroup><col /><col /><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;">Brokerage </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;">Expected drop in revenue QoQ </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;">Motilal Oswal </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;">-7.1% </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;">IDBI </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;">-8.6% </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;">ICICI 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;">-8% </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;">Nirmal Bang </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;">-7.9% </td></tr></tbody></table>Source: Preview reports So far this year, Wipro’s share value continues to be down by 8%. However, it has managed to come back from its coronavirus hit by almost 40% since March 19. <div type="image" title="Wipro share price since Jan" msid="76951585" hostid="261" caption="&amp;lt;p&amp;gt;Wipro&amp;#39;s share price since January 2020&amp;lt;/p&amp;gt;"></div> The impact of the coronavirus pandemic on Wipro As the quarter has progressed, supply-side issues have eased as most of the countries reopened their economies. However, Wipro may have a little more to worry about. “Wipro’s high BPO contribution to revenue makes it more vulnerable to supply-side disruptions as in the current scenario,” said Nirmal Bang’s preview. <div type="Article" hostid="261" msid="76939426" title="Wipro has no plans of firing any employee due to COVID-19, says chairman Rishad Premji" mstype="2" mssubtype="0"></div> Given that BPOs account for more than 40% of Wipro’s IT services, revenue from IT services is expected to see an 8% decline quarter-on-quarter (QoQ) in constant currency (CC) terms, according to IDBI securities. “EBIT margins in global IT services are expected to decline 74 bps [basis points] due to a sharp dip in utilisation,” said ICICI Securities. 100 basis points make up 1%. Unlike its peers, where analysts expect the impact to be limited to particular verticals, Wipro is expected to see “broad-based impact”, according to Motilal Oswal. The product and platforms side of the business may show resilience, expects Nirmal Bang. However, the key segments to keep an eye on will be the impact on engineering research and development (ER&amp;D) and energy, given Wipro’s large exposure to both. Like with TCS, there is likely to be a hard impact of Brexit compounding the weakness in Europe on manufacturing. Wipro has a new CEO The company has recently undergone a change in leadership with Theirry Delaporte becoming the new Wipro CEO. “Long term strategy of the new CEO, strategy to drive industry-leading growth and revival timeline of impacted verticals,” will be a key factor to watch out for as per ICICI securities. <div type="Article" hostid="261" msid="76086029" title="Wipro appoints Theirry Delaporte as new CEO after his 25 year stint with Capgemini" mstype="2" mssubtype="0"></div> During Monday’s Annual General Meeting (AGM), Delaporte hinted at finalising a plan that would improve the company’s position in the market and “achieve industry-leading growth.” “We will make bold bets and stretch goals and will aim to drive a high-performance culture as we steadfastly hold to our cherished values,” he said. Even so, it’s unlikely that Wipro will issue guidance during the first-quarter earnings. Analysts expect the company to wait out another quarter before sharing its outlook for the year. “We anticipate that we will resume providing revenue guidance when we have increased certainty of both demand and supply-side factors,” Wipro said last quarter. SEE ALSO: <a href="https://www.businessinsider.in/careers/news/tech-mahindra-intel-wipro-and-other-multinationals-hiring-engineers/articleshow/76379519.cms">Tech Mahindra, Intel, Wipro and other multinationals hiring engineers</a> <a href="https://www.businessinsider.in/business/corporates/news/tcs-infosys-wipro-and-tech-mahindra-what-to-expect-from-earnings/articleshow/76865753.cms">TCS and Infosys to face least impact — Indian IT companies likely to report sharp decline in revenue during first quarter</a>

A new CEO, Brexit and supply-side exposure may leave Wipro’s Q1 earnings more dented than others

<ul><li>TCS, Infosys, <keyword id="141968" type="CITY" weightage="20" keywordseo="HCL-Tech">HCL Tech</keyword>, and other Indian IT services companies are in for a lush quarter ahead. </li><li>Analysts expect a stream of new deals to come in as supply bottlenecks open up, and more companies increase tech spend with a bigger focus on digital adoption. </li><li>With employees continuing to work from home and discretionary spending muted, margins are likely to remain cushioned in the second quarter. </li></ul>Expectations from the India IT services sector are high in the upcoming earnings season. It is expected to be among the first to recover from the coronavirus pandemic’s backlash. And the stellar rally across IT stocks stands testament to this optimism. “We expect robust commentaries, record deal wins and guidance upgrades by all companies,” Edelweiss Research said in its preview. If not setting a new record, most analysts expect deal win numbers to revert to the pre-COVID levels with supply-side issues now resolved. I.T. Sector: Q2 earnings expectations <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"><colgroup></colgroup><col /><col /><col /><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 colspan="2" 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;">Quarterly revenue growth estimate (CC) </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;"> </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;">Edelweiss </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;">Phillip Capital </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;">Infosys </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;">3.9% </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;">3.1% </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;">TCS </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;">3.2% </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;">2.6% </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;">Wipro </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;">1.7% </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;">1.5% </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;">Tech Mahindra </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;">2.3% </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;">1.1% </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;">HCL Technologies </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;">4.5% </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;">3.6% </td></tr></tbody></table> Drive to be digital The main driving force behind the optimism for IT companies is the boost that the coronavirus pandemic gave to digital adoption. The timelines to transform core IT systems were now suddenly compressed. From cloud to the Internet of Things (IoT) to cybersecurity, more companies are now looking at digitisation as a necessity rather than a luxury, as many a CTO have reiterated over the past couple of months. “We reiterate our positive stance on IT services given we expect an acceleration in IT spending driven by the shift to digital,” noted Japanese brokerage firm, Nomura. The other two industry tailwinds driving acceleration are bigger tech spends and vendor consolidation, in addition to an <a href="https://www.businessinsider.in/tech/enterprise/news/rise-in-work-from-anywhere-will-lead-to-more-outsourcing-thats-an-opportunity-for-tcs-infosys-and-hcl-tech/articleshow/77864248.cms">outsourcing wave</a> on the horizon for Indian IT companies to reap the benefits. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"><colgroup></colgroup><col /><col /><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;">Deals in the last three months </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;">TCS </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;">Phoenix, Morrisons, Coop, and ABB </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;">Infosys </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;">VanGuard and CodEd </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;">HCL Technologies </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;">Ericsson </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;">Wipro </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;">Marelli </td></tr></tbody></table> More money in the bank In addition to strong demand commentary, savings will continue to cushion margins as employees work from home, and discretionary spending continues to stay low. Cross currency benefit will likely remain between 0.2% to 1.85%. Profitability is also expected to rise, as operating margins improve with better utilisation. It will be important to watch out for any details on hiring or wage hikes in the near future from management commentary. Rupee appreciation may lead to a slight negative impact on rupee revenue. What next? Analysts expect Indian IT services companies to improve their outlook following HCL Tech’s mid-quarter review that issued a <a href="https://www.businessinsider.in/stock-market/news/hcl-tech-share-price-jumps-after-mid-quarter-guidance-pulling-tcs-infosys-wipro-and-tech-mahindra-in-the-green-along-with-it/articleshow/78103743.cms">revenue growth guidance of 3.5%</a> for the second quarter. Revenue growth will be led by a strong spurt across all industries, verticals and geographies, according to Edelweiss Research — much of it to recuperate the losses that were hit due to supply side issues. “Moreover, pandemic-led beaten down segments like retail, transportation and ER&amp;D will make a strong bounce back on low base,” the report said. However, others advise exercising a little caution. “With the US presidential elections approaching and valuation bordering on expensive, we believe the sector could remain sideways in the medium-term. We remain cautiously optimistic on the sector,” said Philip Capital. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"><colgroup></colgroup><col /><col /><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;">Rally in past one month </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;">TCS </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;">14.82% </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;">HCL Tech </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;">17.48% </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;">Infosys </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;">12.29% </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;">Wipro </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;">17.7% </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;">Tech Mahindra </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;">12.66% </td></tr></tbody></table> SEE ALSO: <a href="https://www.businessinsider.in/policy/economy/news/gst-compensation-deadlock-continues-government-to-release-20000-crore-cess-tonight-and-offers-relief-for-small-companies/articleshow/78496779.cms">GST compensation deadlock continues — government to release ₹20,000 crore cess tonight and offers relief for small companies</a> <a href="https://www.businessinsider.in/defense/news/the-indian-air-force-is-ready-for-a-two-front-war-with-china-and-pakistan-says-air-chief-marshal-rks-bhadauria/articleshow/78488605.cms">The Indian Air Force is ready for a two-front war, says Air Chief Marshal RKS Bhadauria</a> <a href="https://www.businessinsider.in/stock-market/news/tcs-shares-hit-record-high-board-to-mull-over-share-buyback-and-earnings-on-october-7/articleshow/78486980.cms">TCS' value crosses ₹10 trillion after share price rallies more than 7% ahead of earnings</a>

TCS, Infosys, Wipro and HCL Tech expected to announce more deals in the second quarter

<ul><li><keyword id="6354427" type="ORGANIZATION" weightage="20" keywordseo="apple">Apple</keyword> on Friday said it is previewing a selection of new emoji that will be available this fall with a free software update for iPhone, iPad, Mac and Apple Watch.</li><li>Celebrating the <keyword id="3500016" type="PERSON" weightage="20" keywordseo="World-Emoji-Day">World Emoji Day</keyword>, the iPhone maker revealed the newest emoji designs including bubble tea, pinched fingers, boomerang, transgender symbol, dodo, beaver, nesting dolls, coin, anatomical heart, lungs, ninja, and tamale </li><li>Apple typically adds new emoji just after the release of the new operating systems in the fall. </li></ul> Apple on Friday said it is previewing a selection of new emoji that will be available this fall with a free software update for iPhone, iPad, Mac and Apple Watch. Celebrating the World Emoji Day, the iPhone maker revealed the newest emoji designs including bubble tea, pinched fingers, boomerang, transgender symbol, dodo, beaver, nesting dolls, coin, anatomical heart, lungs, ninja, and tamale Apple typically adds new emoji just after the release of the new operating systems in the fall. It means one would probably look for them in iOS and iPadOS 14.1 or 14.2, and in macOS Big Sur version 11.1 or 11.2. With new Memoji, users will have new ways to express themselves, like new hairstyles. There are 11 new hairstyles, including man bun, top knot, simple side part, waves, and enhancements to fades. One can customise Memoji with new face coverings, including the colour, to match look. The users can show off style, hobby or profession with 19 new headwear styles, including a durag, tichel, cyclist helmet, nurse cap, or swim cap. Three new Memoji stickers let users send fist bump, blush, or even a hug to friends. In iOS 14, there are more ways to create your look with Memoji, where you can customisation options let you express yourself with over a trillion possible combinations. SEE ALSO: <a href="https://www.businessinsider.in/education/news/in-india-schools-cant-conduct-online-classes-for-more-than-90-minutes-for-class-1-to-8-and-other-guidelines-to-follow/articleshow/76976329.cms">In India, schools can’t conduct online classes for more than 90 minutes for class 1 to 8 — and other guidelines to follow</a> <a href="https://www.businessinsider.in/stock-market/news/infosys-vs-tcs-vs-wipro-comparison-of-share-price-and-earnings/articleshow/76996578.cms">Infosys shares are on fire because it beat TCS and Wipro⁠— and gave a soothing guidance</a> <a href="https://www.businessinsider.in/science/health/news/the-world-cant-wait-for-good-news-from-oxford-serum-institute-and-astrazeneca-but-that-is-only-the-first-step/articleshow/76996301.cms">The world can’t wait for good news from Oxford, Serum Institute and AstraZeneca ⁠— but that is only the first step</a>

On World Emoji Day, Apple previews new emojis that will be available on iOS soon

<ul><li>Infosys is expected to fare better than its peers during the first-quarter earnings. </li><li>The Indian IT services company is slated to announce its results on July 15. </li><li>All eyes will be on the value of Infosys’ large deals between April through to June, according to analysts.</li></ul>Infosys is set to post its first-quarter results on July 15 and — as compared to other Indian IT services companies — Infosys is likely to show the least amount of dip in its revenues this quarter, according to analysts. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"><colgroup></colgroup><col /><col /><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;">Brokerage </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;">Expected drop in revenue QoQ </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;">Motilal Oswal </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;">-4.8% </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;">IDBI </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;">-5.7% </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;">ICICI 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;">-5.5% </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;">Nirmal Bang </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;">-5% </td></tr></tbody></table>Source: Preview reports Ahead of its earnings announcement, <keyword id="620690" type="PERSON" weightage="20" keywordseo="Infosys-share-price">Infosys share price</keyword> jumped by more than 8% on Wednesday morning. <div type="image" title="Infosys share price" msid="76975732" hostid="261" caption="&amp;lt;p&amp;gt;Infosys share jumped by 8% on Wednesday morning ahead of earnings results announcement&amp;lt;/p&amp;gt;"></div> Margin impact, in particular, is likely to be limited relative to peers. IDBI Securities expects earnings before interest and tax (EBIT) margin to decline by 45 basis points (bps) this quarter. For TCS, the EBIT margin fell by 148 bps. That’s 1.48% since 100 basis points make up 1%. According to IDBI’s preview, the decline may even have been greater, “but for 50bps impact in Q4FY20 due to provisions for receivables and higher CSR [corporate social responsibility] spend,” it said. <div type="image" title="Infosys share price" msid="76952707" hostid="261" caption="&amp;lt;p&amp;gt;Infosys share price this year&amp;lt;/p&amp;gt;"></div> Infosys’ share price is up by 8% so far this year. Despite the massive hit it took when news of the coronavirus pandemic broke, the company’s stock value has managed to recuperate to ₹796.7 as of Monday. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"><colgroup></colgroup><col /><col /><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;">Stock </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;">Price change in 2020 so far </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;">Infosys </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;">8.25% </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;">HCL Tech </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;">5.38% </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;">TCS </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;">2.29% </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;">Wipro </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;">-8.19% </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;">Tech Mahindra </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;">-21.24% </td></tr></tbody></table>Source: BSE, closing price on Jan 01 compared the closing price on July 13 Keep an eye on large deal wins All eyes will be on the value of Infosys’ large deals between April through to June, say analysts. “Our sense is that large deal TCV [total contract value] will likely be between $1 to 1.5 billion,” said Nirmal Bang in its preview. In comparison, TCS was able to bag $8.9 billion worth of contracts in its first-quarter. The earnings will show whether the deal wins are new deals or renewals. “The latter has been a sore point for Infosys in recent quarters with a larger portion of the TCV being renewals compared to FY19,” Nirmal Bang’s report added. Nonetheless, the manufacturing and auto verticals are likely to see continued pressure, according to Motiwala Oswal. SEE ALSO: <a href="https://www.businessinsider.in/careers/news/tech-mahindra-intel-wipro-and-other-multinationals-hiring-engineers/articleshow/76379519.cms">Tech Mahindra, Intel, Wipro and other multinationals hiring engineers</a> <a href="https://www.businessinsider.in/business/corporates/news/tcs-infosys-wipro-and-tech-mahindra-what-to-expect-from-earnings/articleshow/76865753.cms">TCS and Infosys to face least impact — Indian IT companies likely to report sharp decline in revenue during first quarter</a>

The key thing to watch out for during Infosys earnings will be the size of the new deals

As podcasts become a rage, Swedish music streaming company Spotify has acquired a startup called Podz for an undisclosed sum. Spotify said that it acquired Podz, a small, talented team of entrepreneurs, engineers and designers, to help make the experience even better. Powered by state-of-the-art machine learning technology, Podz generates high-quality clips that give users the opportunity to preview key moments from <keyword id="1590914" type="LOCATION" weightage="20" keywordseo="Podcast">podcast</keyword> episodes, encouraging them to discover and listen to new podcasts. "This capability, combined with Spotify's 2.6 million podcasts on the platform, learnings from our work in music discovery, and current investments in podcast recommendation, will take podcast discovery to the next level," the company said in a statement on Thursday. Podz recently raised $2.5 million in pre-seed funding and celebrities like <keyword id="349873" type="COMPANY" weightage="20" keywordseo="Katie-Couric">Katie Couric</keyword> and <keyword id="14169" type="COMPANY" weightage="20" keywordseo="Paris-Hilton">Paris Hilton</keyword> are also among the investors. Spotify said it has had machine learning experts focused on improving audio discovery for almost a decade, but there is more work to be done. "We believe that Podz' technology will complement and accelerate Spotify's focused efforts to drive discovery, deliver listeners the right content at the right time, and accelerate growth of the category worldwide," the company noted. The company now plans to integrate Podz' technology into the Spotify experience, and listeners should start seeing elements of that work before the end of the year. Spotify has also debuted Greenroom, its live audio Clubhouse rival. More and more companies are now investing in Podcast streaming. <keyword id="6354427" type="COMPANY" weightage="20" keywordseo="apple">Apple</keyword> Podcasts Subscriptions now allow creators to host bonus content and ad-free versions of their shows, in exchange for a monthly subscription. Apple Podcasts Subscriptions are now available for listeners in more than 170 countries and regions. According to reports, Facebook is planning to roll out its podcast product on June 22. The social media network is also likely to add a new feature that will allow listeners to create clips from their favourite shows. SEE ALSO <a target="_blank" class="c-link" href="https://www.businessinsider.in/stock-market/news/adani-group-under-sebi-scanner-on-market-manipulation/articleshow/83501698.cms">Gautam Adani loses over $7 billion in net worth after questions over the meteoric rise in group stocks</a> <a target="_blank" class="c-link" href="https://www.businessinsider.in/stock-market/news/adani-group-pnb-coal-india-tcs-and-other-stocks-to-watch-out-for-on-june-14/slidelist/83499937.cms">Adani group, PNB, Coal India, TCS and other stocks to watch out for on June 14</a> <a target="_blank" class="c-link" href="https://www.businessinsider.in/cryptocurrency/news/weekly-crypto-roundup-wazirx-under-scrutiny-el-salvador-makes-bitcoin-legal-tender-and-more/slidelist/83478577.cms">Weekly crypto roundup: WazirX under scrutiny, El Salvador makes Bitcoin legal tender and more</a>

Swedish music streaming giant Spotify acquires Podz as podcasts become a rage

<ul><li><keyword id="43217" type="CITY" weightage="20" keywordseo="Tech-Mahindra">Tech Mahindra</keyword> is set to post its first-quarter earnings after market hours on July 27. </li><li>Analysts believe, among the top IT services companies, Tech Mahindra may be the worst hit due to its exposure to the BPO business. </li><li>Tech Mahindra’s revenue in Q1FY21 could see a quarterly drop of nearly 9%. </li></ul>The April through to June was expected to be a washout for the IT companies as clients turned cautious on discretionary spending amidst the pandemic. Among them, Tech Mahindra is likely to be the worst-hit, according to analysts. A lot will depend on how its BPO business has fared, and what plans Tech Mahindra has for 5G implementation going ahead. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"><colgroup></colgroup><col /><col /><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;">Brokerage </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;">Revenue growth expectation </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;">Nirmal Bang </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;">-6.4% </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;">IDBI Capital </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;">-9.3% </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;">Motilal Oswal 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;">-8.5% </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;">ICICI 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;">-8.7% </td></tr></tbody></table> “Tech Mahindra in our coverage universe will likely see the biggest QoQ drop in revenue. This is despite the addition of some inorganic revenues in 1Q,” said Nirmal Bang’s preview. Dependence on communications vertical The company’s communication business has been a revenue driver during the past few quarters accounting for more than 40% of its overall income. Much of the quarterly decline expected from the Indian IT services company is with respect to how severely that part of the business has been hit. <div type="image" title="tech m verticals" msid="77189905" hostid="261" caption="&amp;lt;p&amp;gt;Tech Mahindra verticals&amp;lt;/p&amp;gt;"></div> Pricing pressure from clients, project ramp downs, and client-specific challenges in BPO are among the minefield that Tech Mahindra will have to navigate this quarter, according to ICICI securities. However, in the long term, the brokerage believes Tech Mahindra’s leadership in the communication vertical will make it a key beneficiary of vendor consolidation in the segment. “A key thing to monitor would be the receivables situation. Among the companies we cover, Tech Mahindra has the worst numbers. We need to see whether that has undergone further deterioration,” said Nirmal Bang. Tech Mahindra’s stock price has risen 27% since April to close at ₹652.75 during the last trading session. In comparison, NIFTY IT rose by around 116% during the same time period. <div type="image" title="Tech Mahindra Stock price" msid="77189914" hostid="261" caption="&amp;lt;p&amp;gt;Tech Mahindra stock price since April 1&amp;lt;/p&amp;gt;"></div> SEE ALSO: <a href="https://www.businessinsider.in/careers/news/tcs-hiring-again-with-5-employees-to-return-to-offices/articleshow/76887172.cms">TCS to kickstart lateral hiring and bring back 5% of its employees to offices</a> <a href="https://www.businessinsider.in/careers/news/infosys-work-from-home-not-permanent-says-coo-pravin-rao/articleshow/76995155.cms">Infosys is still on the fence when it comes to making work from home a permanent change</a> <a href="https://www.businessinsider.in/business/corporates/news/infosys-company-profit-is-down-4-8-and-revenue-has-dipped-by-2-in-q1fy21/articleshow/76980089.cms">Infosys gives annual guidance of up to 2% growth this year as profit plummets by 4.8% and revenue dips 2% in Q1</a>

Tech Mahindra likely to be the worst-hit of all the Indian IT services giants in first quarter

<ul><li>Wipro's share price is up by 16% on Wednesday, morning after the Indian IT giant reported its Q1FY21 results. </li><li>Wipro's revenue took a massive dip of 5.3% in Q1Fy21 as compared to the preview quarter. </li><li>The company’s profit was up by 2.1% quarter on quarter. </li><li>It has 42 new customers but most its revenue this quarter came from existing clients </li></ul>Wipro’s revenue plummeted by 5.3% in its first quarter of 2020-21 but its profits were up by 2.1% quarter-on-quarter (QoQ). “We expanded the margins during the quarter, despite lower revenues, on the back of solid execution of several operational improvements and rupee depreciation,” said Wipro’s Chief Financial Officer (CFO), Jatin Dalal. <div type="image" title="wipro profit (1)" msid="76975094" hostid="261" caption="&amp;lt;p&amp;gt;Wipro&amp;#39;s profit over the last five quarters&amp;lt;/p&amp;gt;"></div> Wipro's stock price was up by 16% during the morning trade on Wednesday, after the company announced its Q1FY21 results. <div type="image" title="wipro share price (1)" msid="76975119" hostid="261" caption="&amp;lt;p&amp;gt;Wipro&amp;#39;s share price over the last month&amp;lt;/p&amp;gt;"></div><div type="Article" hostid="261" msid="76973619" title="Wipro share price 16% increase leads to surge in Infosys share price too" mstype="2" mssubtype="0"></div> A fact that played a factors in both profits and margins was foreign exchange. A weaker rupee helps Indian IT services companies because since they export most of their services, and so their billing is in dollars. "We have a taken a larger provision which is more call led, as per expected credit loss, which is driven by the environment not led by a specific situation or specific customer — or any specifics for that matter," Wipro's management told analysts during the earnings call. <div type="image" title="wipro margins" msid="76975228" hostid="261" caption="&amp;lt;p&amp;gt;Wipro&amp;#39;s IT services margins over the last five quarters&amp;lt;/p&amp;gt;"></div> "The view is clearly to shoot for stabilisation of the revenue of the top line in the second quarter.," said Wipro CEO Theirry Delaporte during the earnings call. The company has added 42 new customers to its docket, including 13 which are larger than $100 million including the John Lewis Partnership in the UK. It also entered into a strategic multi-year deal with Germany’s E.ON energy company. However, most of its revenue — 99.7% — comes from existing clients. <div type="image" title="Wipro revenue" msid="76975251" hostid="261" caption="&amp;lt;p&amp;gt;Wipro&amp;#39;s gross revenue over the last five quarters&amp;lt;/p&amp;gt;"></div> With respect to hiring, Wipro plans to continue adding new employees to its roster in the coming quarter. “Lateral hiring never stopped. This quarter Wipro has hired 7,000 people gross and we’ve hired across the globe, wherever there was demand,” said Wipro's Chief Human Resources Officer, Saurabh Govil. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/wipro-share-price-16-increase-leads-to-surge-in-infosys-share-price-too/articleshow/76973619.cms">Wipro share price 16% increase leads to surge in Infosys share price too</a> <a href="https://www.businessinsider.in/careers/news/wipro-new-hiring-to-continue-as-it-adds-7000-employees-in-q1/articleshow/76972570.cms">After last quarter’s massive dip, Wipro adds 7,000 employees with plans to continue hiring in Q2</a> <a href="https://www.businessinsider.in/business/corporates/news/tcs-reported-revenue-dips-but-profit-grows-in-q1-fy21-results/articleshow/76875445.cms">TCS revenue dips by 6.3% ⁠— CEO says nearly all verticals were hit by COVID-19 crisis</a>

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