Please dont spread half information.
There is an other income if you look closely.
Normally the other income is in the range of 500-700 but for this quarter the other income reported is around 2700 crore which is massive.
Infosys has posted bad results,
It shall open gap down tomorrow
Infosys Completes Acquisition of
Semiconductor Design Services Provider, InSemi.
InSemi offers end-to-end semiconductor design services with expertise across electronic design, platform
design, automation, embedded and software technologies. It serves leading global corporations across
semi-conductor, consumer electronics, automotive, and hi-tech industries.
The strategic investment with InSemi reaffirms Infosysâ commitment to the semiconductor
ecosystem and strengthens expertise in Engineering R&D services.
âInfosys AI strategyâ
https://www.youtube.com/live/6Wc_obyUiJM?si=8-Mfmm9Tu2ZM94KQ
Q1 Results: FY25: Good to see FY25 Revenue growth guidance raised to 3-4 % from 1-3%
As per AR of Infosys for FY24.
Chairman/Non-executive director attended only 4 out of 6 board meetings held in the last financial year through March 2024. Amongst 8 independent directors, one independent director missed two board meetings and two independent director absent for one board meeting. There is no valid justification or reasoning provided by the company on their absence in the annual report either. Dissent amongst shareholders is also evident in recent voting of AGM held in Jun-24
https://www.pressreader.com/india/hindustan-times-lucknow/20240701/281973202850536
Infosys Innovation Fund collaborates with UVC Partners
Though the amount is small (45 cr), this seems baby step in right direction. I want to see indian IT companies commit small fund for angel or VC fund and support and get benefitted by start up culture like infoedge.
But seems distant dream⌠in long past Narayan murthy as ceo of infy, infy invested small amount in startup - unfortunately it not went well with investor communities and Murthy has to commit not to do it againâŚ
Infy may have good insight for such investment if⌠they are amoung first to allocate fund to openAIâŚ
That amount is their quarter revenue, not even net profit. This tax bill, alongwith the slowdown in IT and recession fears in US, whatâs propping up the share? What trends do we see coming till the next year?
The run up on Infosys is quite steep. Better to wait for a healthier correction and see how the GST fiasco turns out. Probably big fund houses know better than retail investors.
Infosys Revises Revenue Guidance: Focus on Seasonality, Margin Improvement, and Generative AI
Infosys recently revised its revenue growth guidance to 4.5% to 5% for the fiscal year, signaling steady growth despite a mixed operating environment. The company has also maintained its operating margin at 21.3% for Q3, despite challenges like furloughs and higher third-party costs.
Infosysâ revised revenue growth guidance for the fiscal year is between 4.5% and 5% in constant currency terms. This revision has sparked some questions from analysts, particularly about the implied negative growth expected for Q4. In response, the CFO clarified that the company generally sees stronger growth in the first half of the year (H1) compared to the second half (H2). The seasonal impact, along with factors such as furloughs, calendar days, and working days, contributes to the performance dip typically observed in H2. Therefore, the Q4 outlook is not an outlier, but rather an effect of the companyâs predictable seasonal patterns. There were also questions regarding the wage hike, the CFO clarified that there will headwinds and tailwinds, but this wage hike was already announced and baked in their guidance.
Despite absorbing higher third-party costs and the impact of furloughs, Infosys managed to maintain its operating margin at 21.3%. The CFO explained that third-party costs are project-dependent and vary based on client requirements. As such, these costs are not easily predictable, but the company is adept at managing them. The margin performance in Q3 highlights Infosysâ ability to sustain profitability even in challenging operating conditions.
Another point of discussion during the earnings call was the 3.6% improvement in realization over the nine-month period. This improvement, according to Infosys, is part of their ongoing margin improvement program. The company has focused on driving efficiencies and better value extraction from existing contracts, which has contributed to the increase in realization. This is an indication of Infosysâ continuous efforts to enhance its operational capabilities and deliver better outcomes for both the business and its clients.
Generative AI and automation are at the forefront of Infosysâ strategy to support clients and drive cost efficiencies. The company emphasized that most requests related to generative AI are cost-oriented rather than discretionary, aligning with the ongoing trend of businesses seeking ways to optimize operations. Automation is helping both clients and Infosys streamline processes and reduce costs, but the company is not reducing its workforce as a result. In fact, Infosys has been increasing its headcount to meet the growing demand for digital services and support the rollout of automation and generative AI initiatives.
While Infosys is benefiting from automation, it is sharing some of the cost savings with clients. However, a portion of these savings is retained within Infosys, contributing to margin stability and growth. The companyâs balanced approach to passing on cost benefits to clients while retaining a portion for itself is a key aspect of its ongoing profitability.
Infosys continues to see strong traction in its deal pipeline, with notable growth in the U.S. and European markets, particularly within BFSI (Banking, Financial Services, and Insurance), retail, and consumer packaged goods (CPG) sectors. Discretionary spending, especially in the U.S. retail and CPG segments, is picking up, which is a positive sign for the companyâs future growth.
Infosys is also seeing increased demand in key growth areas such as cloud, generative AI, SAP S/4HANA migrations, and cost takeout initiatives. These areas are expected to contribute significantly to revenue growth in the coming quarters. The company has mentioned that the pricing environment is stable.
Closing note of CEO:
*"A very strong growth in this quarter, especially financial services U.S., financial services Europe now starts to see traction in discretionary retail consumer products U.S., all of those good signs for us, extremely strong cash generation, good large deals with very good net new, continued deep sort of capability building and traction on generative AI with our clients and with that an increase in our growth guidance, third in three quarters. So we continue to see as the environment starts to be more supportive in FS, retail, the execution that we are driving within Infosys resonating with our clients and we continue to see that traction with the increase in the guidance for the third consecutive quarter"
Disc: Invested, not SEBI Registered.
Infosys Finacle Unveils New Asset Liability Management Solution For Enhanced Risk And Exposure Oversight
Read more about here - Asset Liability Management
Are we bottoming out in Infosys. At present only 2.5 % positive in Infosys. Holding and adding slowly for more than 2 years. I was of opinion that strength in dollar will favour the Infosys and so donât book any profit in it. Looking at myself, how fool sometimes our thought process. Market keep reminding us, how little we know, and how much needed to be learn.
Currently situation in most of the large cap IT stocks is same.
Majority of the Gains in the past two years till October 2024 have been wiped out and hence mostly gains are hardly 5% to 30% depending on an investorâs entry point.
While such negative factors always exist in Indian IT sector after every 4-5 years, but after that, the sector emerges as Winner but you need to book profits once you believe that, next 2-3 years Price is factored into CMP.
HCL TECH has corrected from P/E of 32 to 24 and TCS from P/E of 36 to 25 in past few quarters. Market has de-rated these large cap stocks quite fast. Though there are quite a few negatives, some positives could be - Gen AI might optimize the workforce and hence Cost in next few quarters, Hiring will be toned down to increase Utilization levels, Margins could go down in short term but might improve after few quarters once the optimization of costs happens. We might see WFH to optimize costs.
While manufacturing in USA might move up, that might throw some opportunities for Indian IT sector over next few years. Some new deals might materialize over next few years in new US sectors.
In general it seems that, there could be more tariff hikes in various areas, and overall it looks negative for World GDP growth. IT sector could be negatively impacted by these indirect impacts on reduced spending by large companies.
Let us see. An investorâs patience will be tested, but steady cash flows and dividend yield might continue.
I may be wrong in my analysis.
(I am also holding TCS and HCL TECH but have booked partial profits in these stocks from time to time, for financial goals. Both stocks are now looking fairly valued. HCL TECH may get further de-rated due to its low ROE/ROCE and OPM as compared to TCS. )
