Indian IT giant Infosys slashes yearly growth outlook

[FuturePAF]

Santa Barbara.

Do you work with Lockheed in Goleta? Is the job usually for the long term there that you would buy a home in Santa Barbara or just rent? I hear a one bedroom there rents for 4k a month.

Seems like it would be an interesting job.

Semiconductor Process Engineering Staff / Santa Barbara, CA at Lockheed Martin Corporation

Learn more about applying for Semiconductor Process Engineering Staff / Santa Barbara, CA at Lockheed Martin Corporation.

www.lockheedmartinjobs.com

 

[CallSignMaverick]

While the larger companies are suffering under inflation, many startups are being exposed for this mismanagement/tone deaf deals, and inability to operate when the cheap VC money runs out (or gets embezzled?), screwing over the labor force.

If this company, as the reporter says was seen as the poster child of Indian startups, sets the global impression for Indian startups, then FDI drops are soon to follow as capital becomes harder to attract in an environment of high global borrowing costs.

The following is a report by none other than India’s favorite reporter (in some circles) Palki Sharma.

Not really, Byju's never had a future and it was well known it would one day end up like this. Physics Wallah became much more successful in a year or two due to better branding.

 

[Skull and Bones]

Do you work with Lockheed in Goleta? Is the job usually for the long term there that you would buy a home in Santa Barbara or just rent? I hear a one bedroom there rents for 4k a month.

Seems like it would be an interesting job.

Semiconductor Process Engineering Staff / Santa Barbara, CA at Lockheed Martin Corporation

Learn more about applying for Semiconductor Process Engineering Staff / Santa Barbara, CA at Lockheed Martin Corporation.

www.lockheedmartinjobs.com

I cannot share more than I already did.

 

[StraightEdge]

Infosys and almost every other Indian IT is heavily dependent on US/EU situations. They are heavily influenced by external factors. Considering the current economic downturn, it's highly probable that their growth will also be impacted. very much expected outcome.

 

[migflug]

FYI

https://twitter.com/x/status/1686971012137779200

https://twitter.com/x/status/1686251416342740992

https://twitter.com/x/status/1686977917706997760

https://twitter.com/x/status/1686924335288872960

 

[FuturePAF]

read up about infosys.... it will help.

Infosys is well established and large enough that it is limited by Western market forces, while the startup circus is being called out.

 

[surmabhopali]

Indian IT giant Infosys slashes yearly growth outlook​

Agence France-Presse . Mumbai, India | Published: 12:22, Jul 21,2023

Indian information technology giant Infosys sharply cut its revenue growth outlook on Thursday as it reported softer-than-expected profits during the April-June quarter on the back of global economic headwinds.

Infosys, India’s second-largest software firm, slashed its revenue growth guidance for the financial year ending March 2024 to 1.0-3.5 per cent in constant currency terms, down from its previous estimate of four to seven per cent.

The Bengaluru-headquartered firm said net profit came in at 59.45 billion rupees ($725.5 million) in the three months to June 30, an increase of 10.9 per cent from the same period last year.

But net profit fell by 3.0 per cent compared to the January-March period, a reflection of the tough conditions facing the sector amid a slowing global economy.

The results were slightly below analysts’ expectations.

‘The way a lot of the transformation programmes that are running today, they are funded from cost efficiency that comes through that programme itself. So overall, the decision-making sometimes is slowing down,’ Infosys chief executive Salil Parekh said at a media briefing.

‘And we’re seeing the start dates -- in terms of where some of these programmes are likely to start -- more towards the back end of the year, and that’s the reason we’re seeing the revenue impact through the year.’

Revenue grew 4.2 per cent year-on-year and rose by 1.0 per cent quarter-on-quarter in constant currency terms.

The company said it won large deals worth $2.3 billion in the quarter, up from $2.1 billion in the first three months of the year.

Employee attrition, a closely watched metric in the tech sector, eased to 17.3 per cent from 20.9 per cent in the previous quarter. Its overall headcount fell by almost 7,000 during the period.

Rival Indian software firm Tata Consultancy Services (TCS) reported last week a slightly better-than-expected net profit of 110.7 billion rupees ($1.35 billion) for the months of April to June, up 16.8 per cent year-on-year but down 2.79 per cent from the March quarter.

TCS had been boosted by a robust order book and said it was building capabilities in newer technologies such as generative artificial intelligence.

Both firms gained from an IT boom that saw India become the world’s back office for subcontracted work.

A boom during the Covid pandemic, which had boosted demand for digital services, has since waned amid an uncertain global environment.

Numerous headwinds, including persistently elevated inflation levels that have triggered higher interest rates and financial sector turmoil, have turned clients cautious.

Infosys earns more than 85 per cent of its revenue from North American and European markets.

Shares in Infosys were 1.73 per cent lower at the close of trading in Mumbai on Thursday ahead of the earnings announcement

Bilal is is still living in Al shams and Al badra days of 1970. But Tikka khan is not there .
Times have changed , Bilal9 should come to terms with modern day reality , it is day of OTT and 5G . World have changed a lot and Bangladesh is doing very well under leadership of Shekh Hasina Ji . Bangladesh is bound to rise .

 

[pikkuboss]

Infosys is well established and large enough that it is limited by Western market forces, while the startup circus is being called out.

For one going out, 10 more are popping up. That's the nature of start-ups. This cycle will continue for a long time.

 

[Kaniska]

@Bilal9 what does you want to say by opening this thread? These are companies that are making billions in profit per quarter. These companies quarterly profit is more than entire market value of Balton. Do you want to tell us how Balton doing?

Walton's profit declines by 63.41% in second quarter

The profit of Walton Hi-Tech Industries, the country's leading electronics and technology company, has decreased 63.41% in the second quarter due to a number of factors including significant increase in the value of the Dollar compared to the Taka, increase in the cost of raw materials and...

www.google.com

Come on my friend….Do not be so mean…At lest Bilal found some opportunities to troll India through Infosys news…

 

[Bilal9]

FYI

https://twitter.com/x/status/1686971012137779200

https://twitter.com/x/status/1686251416342740992

https://twitter.com/x/status/1686977917706997760

https://twitter.com/x/status/1686924335288872960

Have you noticed the language of these Godi Media outlets (and their Twitter/WhatsApp lies and pseudo-lies) that you quote night and day?

• "Just at the cusp of a takeoff boom"
• "MOU signed"
• "Foray Talks"

Much ado about nothing - because inevitably, six months later - things fizzle out.

India can NEVER be the next China. Backoffice maybe, but not for manufacturing.

Western companies (or even the Taiwanese) are not that stupid when investing in a place like India.

With or without BS PLI scheme.

They know the pitfalls....

Even backoffice jobs Indians do are going to get curtailed - as AI takes hold. Some people are saying that 47% of all support and coding jobs are going to get affected....

 

[migflug]

Have you noticed the language of these Godi Media outlets (and their Twitter/WhatsApp lies and pseudo-lies) that you quote night and day?

• "Just at the cusp of a takeoff boom"
• "MOU signed"
• "Foray Talks"

Much ado about nothing - because inevitably, six months later - things fizzle out.

India can NEVER be the next China. Backoffice maybe, but not for manufacturing.

Western companies (or even the Taiwanese) are not that stupid when investing in a place like India.

With or without BS PLI scheme.

They know the pitfalls....

Even backoffice jobs Indians do are going to get curtailed - as AI takes hold. Some people are saying that 47% of all support and coding jobs are going to get affected....

We will see that in coming years. Yes, a lot of these promises fissile out, but lot of them do work. Moreover, our service industry has never been this good, apart from the IT we are making a giant strides in consulting, accounting that too in tier-2,3 cities as the wages in the white collar jobs continue to grow in the western market, India is the best place to off-shore. So, we are in a good position

 

[Bilal9]

We will see that in coming years. Yes, a lot of these promises fissile out, but lot of them do work. Moreover, our service industry has never been this good, apart from the IT we are making a giant strides in consulting, accounting that too in tier-2,3 cities as the wages in the white collar jobs continue to grow in the western market, India is the best place to off-shore. So, we are in a good position

India certainly has a huge wage advantage vis-à-vis Western countries.

Indian investors and promoters themselves however are opportunists and fly-by-night operators out to make a quick buck any way they can. The likes of Vijay Mallya and Subrata Roy are way too common.

As long as they have Modi on their side and share a cut with Modi's politician cohorts, they will be okay to operate in India.

However these investors will never ask the govt. to provide re-skilling to the millions of Indians hankering to better their lives, nor will they sink money to establish back-end linkages to industries for manufacturing, to provide inputs to export industries.

That is why I have personally seen WWII era spinning machines in India (way too common). No new investments made in textiles in fifty plus years.

That is also the reason Indians cannot claim to produce any of the basic items/components needed in making a simple device such as a cellphone, everything is imported from China (even circuit-board sub-assemblies, and of course screens and batteries).

Some Hindutva trolls here bad-mouth Walton in Bangladesh. Walton invested in buying a dozen pick-and-place SMD circuit board machines costing some two dozen crores each, which they have since doubled. This allows them to design their own circuit boards in house, whether for TV's, cellphones or SSD devices. They make their own fridge compressors and are supplying them to EU fridge makers. Heck - they even make their own bespoke screws to put together their own TV's, Microwaves and Fridges.

People can bad-mouth them - but they have proven that a solid vision and strong hard work can pay dividends.

India being a eight-times larger economy has no parallel to this. Industries are China dependent, a country Hindutvas hate with their guts. No synchronicity between words and deeds, "Katha ar kaaj er Shangati nei" (to quote a favorite Bengali idiom).

The Bull$hittery and convincing of gullible Indian populace continues, Everything is hoopla and propaganda.

Service jobs and back-office jobs are replaceable in a flash (because there is no sunk infra to necessitate unique USP or pricing advantage), if competitor skills emerge in a 3rd country like Nepal, Sri-Lanka or even Bangladesh, those jobs will fly away from India before you can blink an eye.

Only stuff remaining will be like before - which means Indians sustaining Indian internal consumption economy with 2.5% to 3% "Hindu rate of growth".

 

[migflug]

India certainly has a huge wage advantage vis-à-vis Western countries.

Indian investors and promoters themselves however are opportunists and fly-by-night operators out to make a quick buck any way they can. The likes of Vijay Mallya and Subrata Roy are way too common.

As long as they have Modi on their side and share a cut with Modi's politician cohorts, they will be okay to operate in India.

However these investors will never ask the govt. to provide re-skilling to the millions of Indians hankering to better their lives, nor will they sink money to establish back-end linkages to industries for manufacturing, to provide inputs to export industries.

That is why I have personally seen WWII era spinning machines in India (way too common). No new investments made in textiles in fifty plus years.

That is also the reason Indians cannot claim to produce any of the basic items/components needed in making a simple device such as a cellphone, everything is imported from China (even circuit-board sub-assemblies, and of course screens and batteries).

Service jobs and back-office jobs are replaceable in a flash (because there is no sunk infra to necessitate unique USP or pricing advantage), if competitor skills emerge in a 3rd country like Nepal, Sri-Lanka or even Bangladesh, those jobs will fly away before you can blink an eye.

India has been weak in manufacturing, its a well known fact. But there has been a huge push by the government since 2014 through Make in India and Aaatmanirbharta, PLI schemes etc. How they will bear the fruit, time will tell, but we have taken steps in the right direction vis-à-vis manufacturing. And as per your assumption that anyone can do "service jobs", its not that easy. Service jobs are mostly white collar jobs(usually the more educated ones) while the manufacturing are blue collared jobs(less educated). And its not easy to displace India as a service powerhouse, just like china(in manufacturing), we too provide scale, that is not possible in any other country. If were that easy, we would have been replaced by now as unlike manufacturing there is not much sunk cost, but it hasn't happened. Instead we are on our way to have a $400 billion service export, and will be second biggest service exporter(50% of this would be IT) after USA($900B+).

 

[Bilal9]

India has been weak in manufacturing, its a well known fact. But there has been a huge push by the government since 2014 through Make in India and Aaatmanirbharta, PLI schemes etc. How they will bear the fruit, time will tell, but we have taken steps in the right direction vis-à-vis manufacturing. And as per your assumption that anyone can do "service jobs", its not that easy. Service jobs are mostly white collar jobs(usually the more educated ones) while the manufacturing are blue collared jobs(less educated). And its not easy to displace India as a service powerhouse, just like china(in manufacturing), we too provide scale, that is not possible in any other country. If were that easy, we would have been replaced by now as unlike manufacturing there is not much sunk cost, but it hasn't happened. Instead we are on our way to have a $400 billion service export, and will be second biggest service exporter(50% of this would be IT) after USA($900B+).

To each his own.

There are white-collar people in other South Asian countries too, who are cheaper to employ.

These folks are no less talented or lesser efficient than Indian white-collar workers.

Bangladesh will remain a "bottom-up" economy with low-wage semi-skilled value-addition for export (shoes and apparel) - which works better in my opinion, just like it did for all Asian tigers.

A "top-down" economy like India dedicated and linked with Western economies is subject to economic vagaries in Western economies and will only exacerbate societal and economic inequality within India - which is bound to have negative consequences, and which will happen soon enough.

A Java developer costs $25 an hour to employ and a garments stitcher $1 an hour. 25 low wage people vs. 1 with high wages. Benefits to an economy I'd say is more effective with the low-wage ones.

People hardly need Java code all the time, but they will always need shoes and clothes.

Any guesses who will keep a job when times get a little tougher?

 

[surmabhopali]

@Bilal9 what does you want to say by opening this thread? These are companies that are making billions in profit per quarter. These companies quarterly profit is more than entire market value of Balton. Do you want to tell us how Balton doing?

Walton's profit declines by 63.41% in second quarter

The profit of Walton Hi-Tech Industries, the country's leading electronics and technology company, has decreased 63.41% in the second quarter due to a number of factors including significant increase in the value of the Dollar compared to the Taka, increase in the cost of raw materials and...

www.google.com

Good question .

Indian IT giant Infosys slashes yearly growth outlook​

Agence France-Presse . Mumbai, India | Published: 12:22, Jul 21,2023

Indian information technology giant Infosys sharply cut its revenue growth outlook on Thursday as it reported softer-than-expected profits during the April-June quarter on the back of global economic headwinds.

Infosys, India’s second-largest software firm, slashed its revenue growth guidance for the financial year ending March 2024 to 1.0-3.5 per cent in constant currency terms, down from its previous estimate of four to seven per cent.

The Bengaluru-headquartered firm said net profit came in at 59.45 billion rupees ($725.5 million) in the three months to June 30, an increase of 10.9 per cent from the same period last year.

But net profit fell by 3.0 per cent compared to the January-March period, a reflection of the tough conditions facing the sector amid a slowing global economy.

The results were slightly below analysts’ expectations.

‘The way a lot of the transformation programmes that are running today, they are funded from cost efficiency that comes through that programme itself. So overall, the decision-making sometimes is slowing down,’ Infosys chief executive Salil Parekh said at a media briefing.

‘And we’re seeing the start dates -- in terms of where some of these programmes are likely to start -- more towards the back end of the year, and that’s the reason we’re seeing the revenue impact through the year.’

Revenue grew 4.2 per cent year-on-year and rose by 1.0 per cent quarter-on-quarter in constant currency terms.

The company said it won large deals worth $2.3 billion in the quarter, up from $2.1 billion in the first three months of the year.

Employee attrition, a closely watched metric in the tech sector, eased to 17.3 per cent from 20.9 per cent in the previous quarter. Its overall headcount fell by almost 7,000 during the period.

Rival Indian software firm Tata Consultancy Services (TCS) reported last week a slightly better-than-expected net profit of 110.7 billion rupees ($1.35 billion) for the months of April to June, up 16.8 per cent year-on-year but down 2.79 per cent from the March quarter.

TCS had been boosted by a robust order book and said it was building capabilities in newer technologies such as generative artificial intelligence.

Both firms gained from an IT boom that saw India become the world’s back office for subcontracted work.

A boom during the Covid pandemic, which had boosted demand for digital services, has since waned amid an uncertain global environment.

Numerous headwinds, including persistently elevated inflation levels that have triggered higher interest rates and financial sector turmoil, have turned clients cautious.

Infosys earns more than 85 per cent of its revenue from North American and European markets.

Shares in Infosys were 1.73 per cent lower at the close of trading in Mumbai on Thursday ahead of the earnings announcement

I thought this guy will now return as moderator , for which he campaigned through his another id , but now he is back in his original role of opening threads on bad state of Indian economy , trade , and politics . Ok guys let us check what he is suggesting for welfare of Indian economy .