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Cognizant Likely To Hire Jatin Dalal As New CFO

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Jatin Dalal, who left his position as chief financial officer (CFO) of Wipro on 21 September, is anticipated to become the CFO of Cognizant Technology Solutions Corp, according to media reports.

Dalal joined the company in 2002 and took over as the company’s CFO in 2015. His last day is 30 November. Wipro appointed Aparna Iyer as his successor.

If Dalal joined Cognizant, it will be the company’s first significant hiring from a domestic technology services company under its new CEO, S Ravi Kumar.

Over the past three years, Cognizant has struggled to keep up with competitors. To steer the ship, Kumar was hired from rival company Infosys in January of this year. Jan Siegmund, Cognizant’s current head of finance, would be leaving at the beginning of next year, the company revealed on 2nd August.

Dalal would be moving to a bigger company if he joined Cognizant. The USD 26 billion company Wipro had revenue of USD 11.16 billion at the end of 2022–2023. Cognizant, which had a market cap of USD 35.2 billion on the same day, had USD 19.4 billion in revenue at the end of 2022. But Wipro performs better in terms of profitability. Wipro has a greater operating margin than Cognizant, which is 16 per cent against 11.8 per cent.

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Infosys Reports Strong Growth In Q3, Revenues Jump To Rs 38,318 Cr

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Operating margin for the quarter remained resilient at 21.5 per cent

Infosys on Thursday reported strong Q3 performance with year-on-year (YoY) growth at 13.7 per cent and sequential growth at 2.4 per cent in constant currency. The company reported its revenues at Rs 38,318 crore in Q3 FY23 from Rs 31,867 crore in Q3 FY22, growth of 20.2 per cent YoY. 

Infosys said that its YoY growth was in double digits for most business segments and geographical regions in constant currency terms. Large deal TCV for the quarter was the strongest in the last 8 quarters at USD 3.3 billion. Digital comprised 62.9 per cent of overall revenues and grew at 21.7 per cent in constant currency. 

Operating margin for the quarter remained resilient at 21.5 per cent. FY23 revenue guidance revised to 16.0 per cent-16.5 per cent. FY23 operating margin guidance retained at 21 per cent-22 per cent. In a statement, Nilanjan Roy, Chief Financial Officer said, “Operating margins in Q3 remained resilient due to cost optimisation benefits which offset the impact of seasonal weakness in operating parameters.”

Infosys’ headcount improved from 3,46,845 in Q3 FY23 from 3,45,218 Q2 FY23. While its voluntary attrition came down to 24.3 per cent from 27.1 per cent sequentially. “Attrition reduced meaningfully during the quarter and is expected to decline further in the near-term,” he added.

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Nine Out Of Ten Executives Report ESG Delivers ROI: Report

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The report identified actions that companies should take now to achieve ESG goals and generate financial returns across sustainability initiatives

Increased ESG investment correlates with higher profits, according to new research from the Infosys Knowledge Institute, the thought leadership and research arm of Infosys (NSE, BSE, NYSE: INFY), a global leader in next-generation digital services and consulting. The report identified actions that companies should take now to achieve ESG goals and generate financial returns across sustainability initiatives.

‘The Infosys report, ‘ESG Redefined: From Compliance to Value Creation’, reveals that nearly all (90 per cent) executives said their ESG spending led to moderate or significant financial returns. Most respondents (66 per cent) experienced ESG returns within three years. The report acknowledges that despite ESG’s clear link to profit growth, budgets are likely to be an obstacle in the current economy. This is worrisome, as companies need more financial resources and operating model changes to achieve ESG goals and sustain profit growth.

Mohit Joshi, President, Infosys, said, “There is nothing novel about the idea that you have to spend money to make money. However, although 90% of respondents in our study say ESG gives ROI, there is still a lag in applying strategy to ESG as it is done for other parts of their businesses. Companies must shift views to recognize ESG as a value creator to reap the financial benefits of ESG investments and to achieve maximum impact in creating a better, more sustainable world.” Strategy alignment and execution will allow businesses to accelerate their ESG initiatives with greater payoff. The Infosys Knowledge Institute revealed several insights to guide companies to accelerate ESG’s financial rewards:

· ESG is a proven moneymaker. The report found that a 10 percentage point increase in ESG spending correlates with a 1 percentage point increase in profit growth. A company that currently spends 5% of its budget on ESG can expect a one percentage point profit increase if it aligns operating or capital budget to increase ESG spending portion to 15%.

· Overlooking the ‘S’ and ‘G’ in ESG reduces profitability. Many companies focus ESG efforts on the environmental segment with commitments to carbon neutrality, net zero, and reducing greenhouse gas emissions. However, there are also opportunities to improve financial results through social and governance initiatives. Research data shows social initiatives like board diversity correlate to improved profitability.

· ESG leadership strategy correlates with a 2 percentage point increase in profit and revenue growth. Companies perform better financially when they demonstrate all the following: a chief diversity officer (CDO), chief sustainability officer (CSO), ESG committee on the board, and also when the CSO clears capital expenditures for ESG initiatives. However, only about a quarter (27%) of those surveyed say their company has all four components in place. The survey data analysis also found that the C-suite and top executive ranks were the most neglected areas for ESG changes. Only 19% of respondents say their company ties executive compensation to ESG goals, and just 30% say their firms place responsibility for ESG with the C-suite.

· Supply chain transparency matters. Research found that almost all companies are interested in aligning their ESG goals with their supply chain, especially as more companies are expected to account for their scope 3 greenhouse gas emissions. However, less than one-third share ESG expectations or requirements for suppliers. Only 16% say they renegotiate contracts based on ESG data from those in the supply chain — indicating a clear need for more leadership in the supply chain and incentives to share ESG data, whether it’s meeting new contract requirements or making themselves more appealing to others in the supply chain.

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Infosys To Decide Share Buyback Proposal On Thursday

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The IT major’s board will consider a proposal of buying back equity shares of the company during the meeting on Oct. 13, 2022

Infosys on Monday said that its board would look at the proposal to pursue buyback of shares in a meeting which will be tabled on Thursday. The IT major’s board will consider a proposal of buying back equity shares of the company during the meeting on Oct. 13, 2022. Infosys had last undertaken share buyback in Sept. 2021. Then, it had bought shares worth Rs 9,200 crore through the open market.

Share buyback is a good way for companies to return money to its shareholders in a tax-efficient way as it allows an organisation to repurchase its own shares from its investors and shareholders.  The company is also announcing its second quarter results on Oct. 13.

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Goldman Cuts India’s Infosys, TCS To “Sell” On Looming Slowdown

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Meanwhile, Goldman upgraded Wipro to “buy” from “sell”

Goldman Sachs downgraded top Indian information technology service providers Tata Consultancy Services and Infosys to “sell,” from “buy,” citing a potential slowdown in dollar revenue growth in the face of impending macroeconomic stress.

“We believe a slowdown in discretionary IT services spend around the growth and transformation agenda will be quite material and something not yet completely reflected in the street’s double-digit revenue growth forecast for the industry for FY24,” Goldman analysts said in a note.

Goldman said it remains “more sanguine” on the EBIT margin forecasts than on revenue of Indian IT companies, given multiple levers such as higher employee utilisation, controls on variable pay and annual wage hikes.

India’s top IT services firms have started freezing or cutting staff bonuses, worried that tightening budgets at US and European clients who are bracing for a recession will sharply hit their own profit as the pandemic-led boom fades out. read more

The IT firms made a windfall when pandemic struck the world couple of years back as several global corporations poured millions of dollars to rev up their digital infrastructure.

However, several top tier companies missed profit estimates in the April-June quarter due to higher costs. 

Goldman upgraded Wipro to “buy” from “sell,” citing attractive valuations and a recent pickup in the company’s order book.

The Nifty IT index was down 3.1 per cent on Wednesday as a surprise increase in US inflation stoked fears of aggressive rate hikes by the Federal Reserve.

The IT index has been one of the worst hit sectors, falling over 27 per cent so far this year, underperforming benchmark Nifty 50 index, which is up 4 per cent.

(Reuters)

airport

Infosys To Co-innovate Aerostructure and Systems Engineering Services

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Under the agreement, Infosys will collaborate with Spirit AeroSystems to provide aerostructure and systems engineering services for product development of commercial, business jet and emerging aircraft programs, and Maintenance, Repair and Overhaul (MRO) services

Infosys has inked five-year agreement with Spirit AeroSystems, Inc., one of the world’s largest manufacturers of aerostructures for commercial airplanes, defense platforms and business/regional jets. 

Under the agreement, Infosys will collaborate with Spirit AeroSystems to provide aerostructure and systems engineering services for product development of commercial, business jet and emerging aircraft programs, and Maintenance, Repair and Overhaul (MRO) services. Infosys will offer end-to-end product development services, including design engineering, sustaining engineering, systems engineering, stress engineering, manufacturing engineering, and repair and maintenance. 

The company will leverage knowledge-based engineering and engineering automation to accelerate product development across the value stream. In a statement, Jasmeet Singh, Executive Vice President and Global Head of Manufacturing, Infosys, said, “Now more than ever, aerospace and defense organizations need to rapidly reinvent their digital foundation. We are thrilled to deepen our strategic collaboration with Spirit AeroSystems and accelerate their digital transformation, by pushing the envelope in design and product engineering.”

Infosys will support Spirit to secure highly efficient structural designs and a robust certification process, contributing to the manufacture of innovative, lightweight, and more sustainable aircraft structures and components. “With our investments in aerostructure engineering and next-gen technologies like artificial intelligence and cloud, we are confident of delivering compelling value to Spirit and take our collaboration to newer heights”, Singh added.

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Infosys Positioned As Leader In IDC MarketScape

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The report spotlights Infosys’ strategic program, Innov8, a part of Infosys Cobalt, to accelerate cloud adoption and digital transformation journeys using SAP digital solutions

Infosys has been positioned as a Leader in the IDC MarketScape: Worldwide SAP Implementation Services 2022 Vendor Assessment (Doc #US48395822, June 2022). 

Under the category, Infosys was recognised for its ability to deliver end-to-end SAP consulting and implementation services across the SAP product landscape including enterprise resource planning, financial management, CRM, HCM, SCM, and analytics.

The IDC MarketScape highlights Infosys’ continued investments in new SAP technologies such as SAP Business Technology Platform, S/4HANA, Spend Management, CRM and CX, SuccessFactors, IBP, and SAP Industry Cloud. Infosys was distinguished for its ability to provide integrated SAP services for organizational change management, SAP-enabled business transformation, business value realization/value governance, and program management.

The report spotlights Infosys’ strategic program, Innov8, a part of Infosys Cobalt, to accelerate cloud adoption and digital transformation journeys using SAP digital solutions. The report notes that IDC views Infosys highly for its innovation/R&D strategy and its go-to-market strategy with SAP alliance ecosystem partners.

“The recognition by the IDC MarketScape is a testament to our excellence in accelerating enterprise digital transformation journeys using SAP solutions. Our differentiated offerings like Infosys Live Enterprise for RISE with SAP, part of Infosys Cobalt, and Innov8 are helping enterprises reduce complexity and accelerate value realization. With deep domain knowledge and consulting-led approach supplemented by focused investments in SAP industry cloud solutions, we remain the preferred partner for enterprise transformation,” said Dinesh Rao, Executive Vice President, Co-Head of Delivery, Infosys.

Source: freepik.com

Sensex jumps 486 points in early trade amid firm global market trends

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The broader NSE Nifty advanced 126 points to 16,175.20 in early trade. Among the Sensex constituents, Infosys,Tech Mahindra, Larsen & Toubro, Sun Pharma, IndusInd Bank, Wipro, Tata Steel and UltraTech Cement were the major gainers.

Market benchmark indices started the trade on a firm note on Monday, with the Sensex climbing 485.98 points amid positive trends in global equities and buying in IT shares. The 30-share BSE benchmark was trading 485.98 points higher at 54,246.76. The broader NSE Nifty advanced 126 points to 16,175.20 in early trade. Among the Sensex constituents, Infosys,Tech Mahindra, Larsen & Toubro, Sun Pharma, IndusInd Bank, Wipro, Tata Steel and UltraTech Cement were the major gainers.

HDFC Bank, Mahindra & Mahindra and HDFC were the laggards. In Asia, markets in Seoul, Shanghai and Hong Kong were trading significantly higher. The US markets had ended sharply higher on Friday. Meanwhile, international oil benchmark Brent crude jumped 0.72 per cent to USD 101.89 per barrel. The BSE barometer climbed 344.63 points or 0.65 per cent to settle at 53,760.78 on Friday and the Nifty advanced 110.55 points or 0.69 per cent to 16,049.20. Foreign institutional investors went in selling mode as they offloaded shares worth Rs 1,649.36 crore in the capital market on Friday, as per exchange data.

PTI

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Infosys To Acquire BASE Life Science For Rs 875 Cr

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“We are excited to welcome BASE life science and its leadership team into the Infosys family,” Infosys president Ravi Kumar S said

The acquisition will deepen Infosys’ expertise in life sciences domain as well as strengthen its footprint across Europe. “This acquisition augments Infosys’ deep life sciences expertise, and expands our footprint further in the Nordics region and across Europe, and scales our digital transformation capabilities with cloud-based industry solutions.

“We are excited to welcome BASE life science and its leadership team into the Infosys family,” Infosys president Ravi Kumar S said. The deal is expected to close during the second quarter of current fiscal. BASE brings to Infosys, domain experts with commercial, medical, digital marketing, clinical, regulatory, and quality knowhow. “Backed by a team of data science specialists, BASE is at the frontier of the latest technological developments and trends. It has a strong focus on Data & AI, and the ability to bridge and integrate business logic and technology, driving insights for better health outcomes.

“The company has about 200 of the finest, multidisciplinary industry experts across Denmark, Switzerland, UK, Germany, France, Italy, and a nearshore technology hub in Spain,” the filing said. Together with Infosys, BASE will further expand its portfolio of expertise into Consumer Health, Animal Health, MedTech and Genomics segments. “With Infosys as our catalyst, we will be able to accelerate our expansion internationally and create development opportunities for our people,” BASE life science CEO Martin Woergaard said.

(PTI)

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Sensex jumps 264 points in early trade, Nifty above 17,300

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The 30-share Sensex was trading 264.02 points or 0.45 per cent higher at 58,127.95. Likewise, the Nifty gained 66.3 points or 0.38 per cent to 17,353.35.

Equity benchmark Sensex jumped 264 points in early trade on Monday, tracking gains in index majors Maruti, Infosys and TCS amid a largely positive trend in global equity markets.

The 30-share Sensex was trading 264.02 points or 0.45 per cent higher at 58,127.95. Likewise, the Nifty gained 66.3 points or 0.38 per cent to 17,353.35.

Among Sensex constituents, Maruti Suzuki India, Wipro, Tech Mahindra, Tata Steel, Infosys, Titan, Tata Consultancy Services and HCL Technologies Limited were the lead gainers.

In contrast, Asian Paints, Kotak Mahindra Bank, Power Grid and Hindustan Unilever Limited were among the laggards.

On Thursday, the 30-share BSE benchmark rallied 1,047.28 points or 1.84 per cent to finish at 57,863.93. Likewise, the broader NSE Nifty surged 311.70 points or 1.84 per cent to 17,287.05.

Equity markets were closed on Friday on account of Holi.

“US markets closed on a positive note on Friday with NASDAQ closing 2 per cent higher. The majority of the Asian markets are also trading in green in Monday’s trade,” said Mohit Nigam, Head – PMS, Hem Securities.

Equity exchange in Shanghai was trading marginally higher, while Hong Kong was quoting lower in mid-session deals. Tokyo was closed for a holiday.

Stock exchanges in the US closed with significant gains on Friday.

Meanwhile, international oil benchmark Brent crude jumped 2.71 per cent to USD 110.8 per barrel.

Foreign institutional investors were net buyers after they bought shares worth Rs 2,800.14 crore on Thursday, according to exchange data.

“Nifty after the 15 per cent correction from the peak has climbed back by 10 per cent. This resilience of the market even amid uncertainties and challenges is significant from the investors’ perspective.

“For the short-term, the biggest positive for the market is the FPIs turning buyers. Crude again back at USD 110 is a headwind,” according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

PTI

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