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MCX Sheds 6% After Sebi Finds Glitches In TCS Supported New Platform

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Multi Commodity Exchange stocks, that touched new highs on Thursday amid the launch of its commodity platform lost more than 6 per cent following Sebi disapproval

Stocks of Multi Commodity Exchange (MCX) paraded during Friday’s trade, after the market regulator Securities and Exchange Board of India (SEBI) directed MCX to postpone the launch of the Commodity Derivative Platform (CDP). 

MCX shares saw huge sell-off pressure during the early morning trading session. The stock opened lower at Rs 1,970 per share and touched an intraday low of Rs 1,913.25 per share after hitting all time high on Thursday.

Following the declaration of the launch date for the new CDP by MCX, the market turned bullish in support of firm stocks. MCX share price rose to Rs 1,971 per share and went on to an intraday lifetime high of Rs 2,104.15 per share on Thursday.

However, on Friday morning, market regulator SEBI urged MCX to halt the CDP launch. SEBI ordered a halt to MCX’s CDP launch, citing a ‘technical fault’ with the CDP launch.

It may be mentioned here that MCX had planned to launch CDP on 3 October 2023. The commodities exchange of India, founded in 2003, has issued an official statement, stating that a mock session prior to the introduction of the commodity derivative platform has been scheduled for 2 October 2023.

The exchange also intended to conduct a mock trading session on 2 October 2023, to allow members to participate, validate setup, and connect during the mock trading session.

The MCX has announced the introduction of its new commodities derivative platform, which will be supported by Tata Consultancy Services (TCS). However, the mock session is still likely to be conducted as scheduled.

MCX has attempted to adapt new technological platforms in the past as well. However, previous MCX initiatives were obstructed by technological challenges leading to the renewal of their arrangement with 63 Moons, an IT Company. 

MCX’s deal with 63 Moons was extended in June of this year. MCX has extended its contract with 63 Moons until December 2023. This renewal comes at a quarterly cost of Rs 125 crore, which is equivalent to Rs 250 crore for the July-December period of 2023.

 

 

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TCS Cuts 2,000 Jobs As Its Operating Margin Contracts 0.5% In Q3

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During the quarter, the company’s operating margin was 24.5 per cent, a contraction of 0.5 per cent YoY. Its Net Income was recorded at Rs 10,846 crore, +11 per cent YoY and its Net Margin at 18.6 per cent

Tata Consultancy Services (TCS) on Monday reported Q3 FY23 revenue at Rs 58,229 crore, +19.1 per cent YoY, +13.5 per cent YoY in constant currency.

During the quarter, the company’s operating margin was 24.5 per cent, a contraction of 0.5 per cent YoY. Its Net Income was recorded at Rs 10,846 crore, +11 per cent YoY and its Net Margin at 18.6 per cent.

Meanwhile, TCS’ Net Cash from Operations was Rs 11,154 crore, 102.8 per cent of Net Income.

TCS workforce was at 6,13,974 as on December 31, 2022, a net reduction of 2,197 during the quarter.

The company’s IT services attrition on an LTM basis trended down to 21.3 per cent and is expected to fall further in the coming quarters.

In a statement, Rajesh Gopinathan, Chief Executive Officer and Managing Director, TCS said: “We are pleased with our strong growth in a seasonally weak quarter, driven by cloud services, market share gains through vendor consolidation, and continued momentum in North America and UK. The sustained strength of demand for our services is a validation of the value we provide to our clients in helping them differentiate themselves, while enhancing their competitiveness. Looking ahead, and beyond current uncertainties, our longer-term growth outlook remains robust.”

In a recent report, ICRA said that the operating margins of the IT services sector for the sample set had moderated by 200-250 bps on a year-on-year (YoY) basis in H1 FY2023 due to continued wage cost inflation and normalisation of operational overheads in Indian IT services.TCS’ growth in quarter was led by Retail and CPG (18.7 per cent) and Life Sciences & Healthcare verticals (+14.4 per cent). Communications & Media grew +13.5 per cent and Technology & Services grew +13.6 per cent. Manufacturing grew +12.5 per cent while BFSI grew +11.1 per cent.Among major markets, North America and UK led with +15.4 per cent growth; Continental Europe grew +9.7 per cent. 
In emerging markets, Latin America grew +14.6 per cent, India grew +9.1 per cent, Asia Pacific grew +9.5 per cent and Middle East & Africa grew +8.6 per cent.
TCS shares had closed at more than 3 per cent higher at Rs 3,310 apiece on the BSE, at the closing time on Monday ahead of Q3 results.

economy

Market Update: BPCL, IDBI To Kickstart The Week, Watch Out For TCS, Tata Steel

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After a fall last week, Monday may prove volatile for the stock market. Experts say that there has been a slump in the market since the last few days and even today, the market may witness ups and downs

The last few days have seen a bearish trend in the stock market. One of the biggest reasons for this is the withdrawal of foreign portfolio investors (FPIs) from the market. According to a report, FPIs have been selling in the market for 11 consecutive days. This period has seen a sale of about Rs 14,300 crore. The market had closed on the red mark on the last trading day i.e. Friday and even today, it will be highly volatile.

Stocks Going Strong 

Here’s a look at the stocks that may trend today. The Momentum Indicator Moving Average Convergence Divergence (MACD) has given bullish signals to RVNL, BPCL and IDBI Bank. These stocks have been performing well in the past few days.

It may be mentioned here that Rail Vikas Nigam Limited (RVNL) has been bagging some big projects, which has strengthened its financial position. Trading at Rs 72.40, it has gained 6.55 per cent in last five days and 7.50 per cent in a month.

These Are On A Rise 

The stock of Bharat Petroleum Corporation Limited i.e BPCL also closed on the green mark on Friday. This share, which is available at Rs 345 with a rise of 0.77 per cent, has given a return of about 4 per cent to its investors in the last 5 days. In the last six months, this figure has gone up to 9.21 per cent.

As for IDBI Bank, despite the slump in the market on Friday, this stock had jumped by 7.58 per cent. It is trading at Rs 58.90 and is close to its 52-week high of Rs 61. While its 52-week low has been Rs.30.50.

Names That Would Be In Spotlight Today 

Here’s a look at the few names that may be trending today. Tata Consultancy Services will release its December Quarter (Q3FY23) results in today. It is currently trading at Rs 3,213.90 and has seen a slump but all eyes are on the report.

Dhruv Consultancy Services has been awarded a contract worth Rs 11,17,80,000 by the National Highways Authority of India, Navi Mumbai. It is currently at Rs 56.35 and closed with a jump of 3.49 per cent.

Gland Pharma Ltd has entered into an agreement to buy a stake in Cenexi and Cenexi Holding Entities. JK Paints and Coatings, a JK Cement company, has invested Rs 153 crore and completed the acquisition of 60 per cent equity shares of Acro Paints.

There has been a 12 per cent jump in the sales of Titan Company on an annual basis. Similarly, the production of Tata Steel has also increased.

Aditya Birla Fashion & Retail proposes to raise funds by issuing 5,000 listed, unsecured, rated, redeemable non-convertible debentures of the face value of Rs 10,00,000 each issued at par aggregating to Rs 5,00,00,00,000 on private placement basis, on or after January 13.

All these factors can change the scene for these companies.

money

TCS Witness Softness In Long-Term Deals As IT Firms Yields Profit in Q2FY23

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Numerous India’s leading IT services firms are considering various cost-cutting measures. Their worry focuses on tightening budgets at recession-wary U.S. and European clients will sharply hit their own profits post the pandemic-led boom

Tata Consultancy Services (TCS) said, after India’s leading IT exporter reported increase in second quarter’s profit beyond expectation, it was witnessing some softness in long-term deal decision making, on 10 October.

The company’s order book stood at 8.1 billion dollar for July-September quarter. It consisted several small and medium-sized deals instead of large ones, said TCS.

Numerous India’s leading IT services firms are considering various cost-cutting measures. Their worry focuses on tightening budgets at recession-wary U.S. and European clients will sharply hit their own profits post the pandemic-led boom.

“Europe is a very uncertain environment,” said Rajesh Gopinathan, Chief Executive-TCS during a press conference.

The Mumbai-based company said that the United Kingdom and Europe were stronger sequentially in the second quarter in its order book, however warned about existence of some “softness” in deal closures in Europe.

TCS is the first one to report results quarterly among its peers or genre, setting the tone for the industry. It has been profiteering from a pandemic-led boom in demand.

The quarterly annualized attrition surged in the second quarter and expects it to “taper down from this point, while compensation expectations of experienced professionals moderate,” TCS added.

The company’s net profit increased by 8.4 per cent to 104.31 billion Indian rupees (1.27 billion dollar) in the quarter ending 30 September as against a year earlier.

Analysts expected an average profit of 102.44 billion rupees. Its revenue generated from operations hiked by 18 per cent to 553.09 billion rupees.

economy

TCS Q2FY23 Results: Net Profit Jumps 8% YoY To Rs 10,431 Cr

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Its revenue grew 18 per cent YoY to Rs 55,309 crore compared to Rs 46,867 in the corresponding quarter last year

Tata Consultancy Services (TCS) on Monday released its financial results for the quarter ended 30 September, 2022 and reported an 8.4 per cent year-on-year (YoY) rise in net profit at Rs 10,431 crore compared to Rs 9,653 crore in the year ago quarter.

Its revenue grew 18 per cent YoY to Rs 55,309 crore compared to Rs 46,867 in the corresponding quarter last year.

The company has announced a second interim dividend of Rs 8 per equity share. The record date for the same is October 18 and it will be paid on November 7.

Net operating margin came in at 24 per cent, contracting 1.6 per cent YoY. The company’s order book for the quarter was USD 8.1 billion.

Net cash from operations came in at Rs 10,675 crore or 102.3 per cent of net income, the company said.

Segment-wise, growth was led by Retail and CPG (22.9 per cent), Communications & Media (18.7 per cent), and Technology & Services (15.9 per cent). Manufacturing as well as Life Sciences & Healthcare verticals grew 14.5 per cent, while BFSI grew 13.1 per cent.

There was strong, broad-based growth for all services in Q2, led by Cloud, Enterprise Application Services, and Cyber Security, the company said. 

“Demand for our services continues to be very strong. We registered strong, profitable growth across all our industry verticals and in all our major markets. Our order book is holding up well, with a healthy mix of growth and transformation initiatives, cloud migration and outsourcing engagements,” said Rajesh Gopinathan, CEO & MD, TCS.

Market-wise, North America led with 17.6 per cent growth; Continental Europe grew 14.1 per cent and the UK grew 14.8 per cent. In emerging markets, India grew 16.7 per cent, Latin America grew 19 per cent, Middle East & Africa grew 8.2 per cent and Asia Pacific grew 7 per cent.

The IT major net hired 9,840 new employees during the quarter under review, taking the total workforce strength to 6,16,171. It said women’s share in the workforce was 35.7 per cent. The last twelve-month attrition came in at 21.5 per cent.

“Reflecting our culture of being committed to our employees, we have honored all the job offers we had made. Our investments in capacity building and organic talent development have allowed us to substantially grow our business ahead of headcount addition this quarter. We believe our quarterly annualized attrition has peaked in Q2 and should see it taper down from this point, while compensation expectations of experienced professionals moderate,” said Milind Lakkad, Chief HR Officer, TCS.

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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)

economy

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

economy

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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Five of top-10 cos add Rs 86,000 cr in m-cap; TCS biggest gainer

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The market valuation of TCS jumped by Rs 36,694.59 crore to reach Rs 14,03,716.02 crore, while that of Reliance Industries (RIL) climbed Rs 32,014.47 crore to stand at Rs 16,39,872.16 crore.

Five of the 10 most valued firms together added Rs 85,712.56 crore in market valuation last week, with Tata Consultancy Services (TCS) emerging as the biggest gainer.
The market valuation of TCS jumped by Rs 36,694.59 crore to reach Rs 14,03,716.02 crore, while that of Reliance Industries (RIL) climbed Rs 32,014.47 crore to stand at Rs 16,39,872.16 crore.
Hindustan Unilever’s valuation zoomed Rs 12,781.78 crore to Rs 5,43,225.5 crore.
Besides, HDFC added Rs 2,703.68 crore, taking its valuation to Rs 4,42,162.93 crore. The valuation of Bajaj Finance stood at Rs 4,24,456.6 crore, a rise of Rs 1,518.04 crore.
On the other hand, the market capitalisation (mcap) of HDFC Bank slipped by Rs 3,399.6 crore to Rs 8,38,529.6 crore and that of Infosys went down by Rs 5,845.84 crore to Rs 7,17,944.43 crore.
The valuation of ICICI Bank diminished by Rs 28,779.7 crore to Rs 5,20,654.76 crore and that of State Bank of India (SBI) dipped by Rs 12,360.59 crore to Rs 4,60,019.1 crore.
Bharti Airtel’s valuation stood at Rs 3,91,416.78 crore, a decline of Rs 961.11 crore.
In the ranking of top-10 firms, RIL retained its number one position, followed by TCS, HDFC Bank, Infosys, HUL, ICICI Bank, SBI, HDFC, Bajaj Finance and Bharti Airtel.

PTI

Business men giving a handshake. Business concept

TCS Partners With Heritage Life Insurance Company Reimagine Customer Experience

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The new customer service platform has empowered CSRs, reduced the average service call duration, boosted productivity, and significantly improved customer satisfaction. Further, it serves as a digital foundation that Heritage Life can leverage to integrate newer channels in the future for policy holders.

Tata Consultancy Services (TCS) (BSE: 532540, NSE: TCS), a leading global IT services, consulting and business solutions organization, has partnered with Heritage Life Insurance Company, a US-based provider of insurance and reinsurance services, to transform the customer experience for policy holders in the closed book of business it recently acquired.

In December 2019, Heritage Life acquired a closed book of life insurance policies as part of its growth strategy. It selected TCS to build a new, resilient, and scalable customer service platform that would deliver a superior customer experience before the Transition Services Agreement (TSA) expiry and ensure continuity of service to the policy holders.

TCS conducted design thinking workshops with business and IT leaders to examine the entire customer journey, identified information gaps and bottlenecks, and blueprinted a solution that streamlined the processes and data flows to transform the customer experience end-to-end. At the core of the solution is a platform that gives Customer Service Representatives (CSRs) a 360-degree view of the policy holders, equipping them with all the information they need to swiftly respond to service requests and offer personalized services.

The integrated platform encompasses a cloud-based contact center, workflow management system, document management system and customer communications, to enable a seamless and secure flow of data and work items, for speedy fulfillment of customer service requests. TCS used a low-code/no-code technology platform from Creatio, its Co-innovation Network (COIN™) partner to accelerate the build process.

The new customer service platform has empowered CSRs, reduced the average service call duration, boosted productivity, and significantly improved customer satisfaction. Further, it serves as a digital foundation that Heritage Life can leverage to integrate newer channels in the future for policy holders.

“With the rapid growth of Heritage Life, we wanted to ensure our business was meeting evolving customer needs and expectations. This meant enhancing our digital capabilities. To enable this, we chose TCS as our transformation partner to reimagine user experience and offer highly personalized customer engagement,” said Pamela Lall Brown, Head of IT, Heritage Life.

“TCS helps financial services firms adopt a holistic approach to digital transformation, redesigning all the processes and underlying systems that affect the customer journey, to provide frictionless, compelling experiences. We are pleased to partner with Heritage Life in reimagining their customer service, leveraging our digital expertise, experience in CX transformations and our COIN innovation ecosystem to provide a differentiated experience,”said Anupam Singhal, Business Head, Banking, Financial Services and Insurance, TCS.

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