Bengaluru: The information technology services The cold shows no signs of abating. tcs And Infosys’ results for the December quarter showed just how bad the global environment is for the industry. TCS’s revenue grew only 1.7% year-on-year in constant currency (which strips out the impact of currency fluctuations), while Infosys Declined by 1%. In dollar terms, TCS’s revenue rose 2.9% to $7.3 billion, while Infosys’s revenue rose 0.1% to $4.7 billion.
Employee numbers have declined by about 6,000 each quarter. Compared with a year ago, the total headcount at the two companies is down by about 35,000. IT’s mainstay market – North America – and its most important vertical – banking and financial services – are under stress.
TCS CEO K Krithivasan said that the situation has not changed much. He said there was a sense of optimism when interest rates started falling, but it As a result, no certainty or decision could be taken at the ground level regarding new investment. “Maybe it will happen after some time. I think it is too early to say anything and we are not seeing any change on the ground,” he said.
Infosys has narrowed its revenue guidance for the year to a range of 1.5% to 2%. Last quarter, it expected annual revenue to grow between 1% and 2.5%. It has maintained its operating margin guidance at 20-22%. But during the quarter, its operating margin declined by 70 basis points (100 bps = 1 percentage point) to 20.5% compared to the previous quarter.
Infosys CEO Salil Parekh said the financial services, hi-tech and telecom sectors have been adversely affected, but there has been growth in manufacturing, energy, utilities and life sciences. In geography, he said, North America is weak, but European trade has increased.
Despite the performance, Infosys’ share price on the NYSE was up 4% in early trading, suggesting investors expected the company to perform worse than it did. The company’s growth in the last financial year was 15.4%.
TCS’ operating margin expanded 70 bps to 25% in the quarter. In this quarter it received orders worth $8.1 billion, whereas in the September quarter it received orders worth $11.2 billion. The total contract value of Infosys’ mega deals was $3.2 billion, compared to $7.7 billion it had signed in the previous quarter.
Outgoing Infosys CFO Nilanjan Roy said the company is not considering campus recruitment immediately. “For any amount of growth, we have a very strong off-campus program,” he said. TCS CHRO Milind Lakkad said the company has hired a good number of trainees from the market in the December quarter as well. But as the company increases efficiency, he indicated the number of employees may be reduced.
Employee numbers have declined by about 6,000 each quarter. Compared with a year ago, the total headcount at the two companies is down by about 35,000. IT’s mainstay market – North America – and its most important vertical – banking and financial services – are under stress.
TCS CEO K Krithivasan said that the situation has not changed much. He said there was a sense of optimism when interest rates started falling, but it As a result, no certainty or decision could be taken at the ground level regarding new investment. “Maybe it will happen after some time. I think it is too early to say anything and we are not seeing any change on the ground,” he said.
Infosys has narrowed its revenue guidance for the year to a range of 1.5% to 2%. Last quarter, it expected annual revenue to grow between 1% and 2.5%. It has maintained its operating margin guidance at 20-22%. But during the quarter, its operating margin declined by 70 basis points (100 bps = 1 percentage point) to 20.5% compared to the previous quarter.
Infosys CEO Salil Parekh said the financial services, hi-tech and telecom sectors have been adversely affected, but there has been growth in manufacturing, energy, utilities and life sciences. In geography, he said, North America is weak, but European trade has increased.
Despite the performance, Infosys’ share price on the NYSE was up 4% in early trading, suggesting investors expected the company to perform worse than it did. The company’s growth in the last financial year was 15.4%.
TCS’ operating margin expanded 70 bps to 25% in the quarter. In this quarter it received orders worth $8.1 billion, whereas in the September quarter it received orders worth $11.2 billion. The total contract value of Infosys’ mega deals was $3.2 billion, compared to $7.7 billion it had signed in the previous quarter.
Outgoing Infosys CFO Nilanjan Roy said the company is not considering campus recruitment immediately. “For any amount of growth, we have a very strong off-campus program,” he said. TCS CHRO Milind Lakkad said the company has hired a good number of trainees from the market in the December quarter as well. But as the company increases efficiency, he indicated the number of employees may be reduced.
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