You have point as this keeps on happening frequently with infosys
Can someone recognise that this is the same company whose promoters take moral high ground of creating the best corporate governance system ever ?
I have always believed that this company suffers from weak corporate control. This is also due to erstwhile promoters’ excessive focus on margins/dividends and buyback rather than creating thought leaderships in the domain they operate.
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It’s says USD 800,000/- which is roughly INR 5.6 Cr. All of the IT companies does that by sending on B1 instead of H1B, not only Indian even the US MNCs.
Article on Infosys:
https://seekingalpha.com/article/4313096-infosys-solid-fundamentals-despite-noise
The article suggests that the author is bullish mainly due to good run in their BPO biz which is kind of sad for long term watchers of the stock. With the kind of money and other resources they had they could have built a solid IP based franchise. This article further reinforces the fact that they are not on the right track by competing fiercely in the bottom of the pyramid in the overall IT value chain.
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Infy came with strong set of numbers for last Q.
Looks like Infy has momentum which should carry on for a couple of years.
They are focused on few things which makes it interesting play.
- Hi-tech and communication. They entered into a partnership with Nokia sometime back. Looks like they have strategy to be well placed for 5G convergence opportunities.
- They seem to be highly focused which is becoming cloud of choice for enterprises and I read somewhere that they are largest influencers for Azure globally.
30% higher target price
Who says only govt employees could be corrupt. Someone rightly said… large number of folks in the private sector are honest as they did not have opportunity.
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Interesting, these are BPO guys working under CPC, IT Bangalore. Shouldn’t be any material impact on Infosys.
Exactly, and imagine the kind of volumes they will be supervising in their work on GST network. The system has not stabilised there and now this revelation is not a great news for sure. I would not read too much into this whether they are BPO or consulting employees. The govt will consider them as competent Infy employees doing hanky panky behind their back. There are enough indications that even PMO is looking into GST network issue.
They can not do this without connivance of some IT employees as contractors do not have any authority on refunds etc.
It is all outsourced as government can not handle volume as efficiently.
So government does not have an option. If done inhouse they will need to hire thousands of employees with atleast 100x more corruption and 1/10th speed.
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With 40% US employees on h1b, increasing remuneration at the top level and covid impact, topline should get squeezed. Company would be able to reduce cost if they are able to implement their plan of 30-50% employees as work from home option though.
Not a correct assessment. INfy owns most of their office spaces and they will not see any big benefit when employees WFH. They will continue to incur fixed costs which is the largest component of infra costs. Secondly, if employees work from home, you can not ask clients to pay premium for infra costs. You need to keep in mind that clients cover infra costs when they hire resources at offshore centres. IMO, Infy will be a net loser whenever WFH picks up unless they plan to offload their office assets to REIT like structure.
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Almost 99% accounts are working from home currently. H1b won’t be a bigger issue as infy already started hiring us citizens for past three years or so. But the ones hired are not so great in most of these cases so they are paying more to get good talents or hiring mostly freshers in US so that’s kind of offsets it. Currently the plan is to retain most of the folks to wfh and even employees are starting to demand wfh. I see a fundamental change in how service based IT companies are going to operate. Infy is going to have a bigger challenge as so much is already spent on building and maintaining the infra. They can probably convert them to training hubs/universities etc in the longer run. Short term there will be pain as most of the new projects are put on hold and operating with less than ideal workforce/lesser billing etc. There is a talk of downsizing some redundant roles on an higher level and there is a strong push to train/certify existing employees. We need to wait and see if these make a big difference going forward.
Infosys vanguard deal may be valued @ $1.5 billion!
“The true investor will do better if he forgets about the stock market and pays attention to his dividend returns and to the operation results of his companies.”
- Benjamin Graham
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Infosys Board to consider buyback on 14th Apr’21
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Infosys Q4FY21 Result – Below expectations
Positives
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EBIT: down 90 bps qoq – better than expectations (wage hike impact mitigated by offshore shift)
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Buy-back: 9200 Cr/ 1750 per share (25% premium)
Negatives
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Revenue: up 2.8%qoq – below expectations however still strong for a seasonally weak quarter
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Deal wins: TCV at $2.1 bn below expectations (though coming of a very strong Q2 & Q3 – and visibility is quite encouraging)
Guidance
- FY22: 12-14% rev growth/ 22-24% EBIT/ strong large-deal pipeline
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The buyback is only for namesake