Connect with us

Business

TCS records best ever Q3 in 9 years despite pandemic

Published

on

BENGALURU: Tata Consultancy Services (TCS) reported 4.1% sequential growth in constant currency in the third quarter. This, it said, was its best performance in nine years in a seasonally weak quarter, as demand from clients remained strong during the pandemic. Compared to the same quarter in the previous year, the growth was 0.4%.
On a reported basis, revenue was up 2.1% year-on-year to $5.7 billion helped by growth in life sciences and the banking, financial services & insurance (BFSI) sector. This more than offset dips in retail and manufacturing. Net profit was up 3.7% to $1.1 billion.
“We are pleased to draw a line under the year, which has been challenging. For the next fiscal, we are confident to be back to double-digit growth and getting back to normalcy trajectory,” CEO Rajesh Gopinathan said.
The impact of the results will be seen on Monday when the markets open, but shares of IT firms have been on a roll in the first week of the new year. TCS shares were up 5% in the last five trading sessions and ended at Rs 3,120 on the BSE on Friday.
A large part of the revival is due to winning mega deals from clients who are looking for vendor consolidation as they undertake digital transformation, a necessity in the post-pandemic world. That means customers are spending more on newer technologies like cloud and cyber security to support their shift to remote work. TCS said its total contract value at the end of the third quarter was $6.8 billion, which excludes the acquisition of Postbank Systems from Deutsche Bank.
Life sciences and healthcare business was up 18.2% in constant currency and BFSI 2.4%. “Banking is strong in North America, while retail continues to consolidate,” Gopinathan added. Operating margin was up 160 basis points (100bps = 1 percentage point) to 26.6% in a period when the company also introduced wage hikes.

Medical Laboratory Scientist (MLS) |Dancer|Software Developer|Multitalented|??|Entrepreneur|Researcher ?| Founder, CEO and Publisher MUHABARISHAJI NEWS

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

How Rs 10k investment in these stocks grew over decades

Published

on

NEW DELHI: What makes companies stock market favourites? They dare to dream. As equity indices scaled fresh peaks in 2021, here’s how an initial push of Rs 10,000 fared over the decades in the below mentioned stocks.
IT stocks
Infy: Rs 1.5 crore (1995*)
Infosys is the stuff of middle class dreams. It was founded as an IT services company in 1981 by seven engineers led by N R Narayana Murthy, with an initial capital of Rs 10,000 that Murthy’s wife gave him. It was money she had saved for a rainy day. The same year it signed its first software client, New York-based Data Basics Corporation.
In 1987, it opened its first international office in Boston. Six years later, it introduced an employee stock options programme and the same year, it did a very successful IPO. In 1999, it became the first India-registered company to list on the Nasdaq. As India’s IT revolution took off, and Infy’s share price surged, the widely distributed share structure created numerous dollar millionaires.
TCS: Rs 2.7 lakh (2004)
Tata Consultancy Services launched as a division of Tata Sons on April 1, 1968, as a management and technology consultancy that would create demand for downstream computer services. F C Kohli, a brilliant technocrat, was brought in from Tata Electric Cos to run it. Since the govt mandated that any import of computers must entail exports of twice the value, TCS developed an external market focus.
It started building software for common processes like financial accounting. In 1973, a partnership with American business equipment maker Burroughs resulted in the first recorded instance of an offshore software delivery done out of India, accomplished using automation. These efforts resulted in TCS leading India’s software revolution.
Wipro: Rs 36 lakh (1995*)
Wipro was founded in 1945 in Amalner, Maharashtra, by Mohamed Premji to manufacture vegetable oil. It did an IPO the year after and was listed on the BSE. Mohamed died in 1966, forcing his son Azim to abandon his studies and take over the company. In three decades, Premji took Wipro first into computing hardware, and then into IT services.
It was listed on the NYSE in 2000. India’s IT revolution resulted in Wipro’s revenue and share price surging. Premji’s ownership of 75% of the stock made him one of the richest Indians. The economic benefits of most of those shares are committed to his philanthropic foundations.
Equity culture
RIL: Rs 39.5 lakh (1992*)
Started in 1966 as a small textile manufacturer, RIL has morphed into an enterprise with interests in petrochemicals, oil & gas, retail, telecom and financial services. Its IPO in 1978 introduced the equity culture in India and its market value then was Rs 10 crore.
Today, RIL enjoys a market cap of Rs 13.3 lakh crore. After founder Dhirubhai Ambani’s demise in 2002, the empire was divided between his two sons, with the older Mukesh inheriting the flagship, and Anil getting the new-age biz like telecom. In 2016, RIL disrupted India’s mobile services sector with the launch of Jio.
Others
Titan: Rs 42 lakh (1992*)
Started as a watchmaker in 1984, Titan is a JV between the Tatas and the Tamil Nadu Industrial Development Corp. It listed in 1987 and, in 1993, it entered jewellery — now its biggest revenue contributor. Titan also got into perfumes & eyewear. It has emerged as the second biggest jewel in the Tata Group’s crown with a Rs 1.4-lakh-crore mcap after TCS.
Asian Paints: Rs 43 lakh (1992*)
Founded by four friends in the pre-independence era, Asian Paints is a sector leader. It expanded into related areas in the home improvement space from furnishings to lightings. It also launched hand sanitisers and surface disinfectants. RIL holds about 5% stake in Asian Paints, bought in 2008, months before the collapse of Lehman Brothers.
Crisil: Rs 11 lakh (1994)
An S&P arm, the homegrown rating agency has transformed into a global analytics co, generating more revenue from outside the country than from within. The support from a parent, which has a large stake, and Rakesh Jhunjhunwala holding another big chunk has helped the stock.
Financials
HDFC Bank: Rs 37 lakh (1995)
What sets it apart from other performers is the consistency with which it has delivered. It has generated a 20% profit growth over the years, irrespective of market conditions. The bank, which started out by cherry-picking corporate salary accounts for retail deposits, is now a pan-India institution that has cracked the ability to deliver small loans profitably and gained global recognition. Despite its scale, it is on the cutting edge of innovation and gives fintechs a run for their money with its digital strategy.
HDFC: Rs 20 lakh (1993)
HDFC is synonymous with home loans. What makes it a star performer is that despite competition from banks, it is able to maintain its scale of operations without diluting its loan quality. The strict underwriting and a practical approach to loans has resulted in the company having the lowest level of bad loans among all lenders including banks.
What many do not realise is that besides being a housing finance company, HDFC is an investment co holding large chunks of valuable businesses like banking, life & non-life insurance and stockbroking.
Bajaj Finance: Rs 30 lakh (1994)
When Rahul Bajaj split his business between his sons Rajiv and Sanjiv, it looked like the younger Sanjiv Bajaj was getting an offshoot of the main family business. No corporate had cracked financial services. But this was one rare instance where the division of business led to the multiplication of wealth.
Bajaj identified that there were manufacturers and retailers willing to partner lenders who finance the purchase of their products. Also, technology was available to deliver small loans after underwriting customers. The result — a company that is valued at over Rs 3 lakh crore, more than SBI’s Rs 2.6 lakh crore.
Bajaj Finserv: Rs 2 lakh (2008)
While its twin Bajaj Finance gets most of the loans and the market valuation, Bajaj Finserv has the advantage of being a holding company, which owns two extremely valuable insurance businesses. Unknown to most, Bajaj’s insurance joint ventures are the most profitable private insurance companies.
Although two decades ago, Bajaj had contracted to sell a majority stake to foreign partner Allianz if laws allowed it, however, the absence of liberalisation enabled Bajaj to retain a majority in the insurance companies, which continue to thrive as part of Bajaj Finserv group.
Pharma
Dr Reddy’s: Rs 2.2 crore (1991)
Dr Reddy’s Laboratories, listed here in 1991, is one of the first drug companies to be listed on the NYSE. It was set up in 1984 by (late) K Anji Reddy and his associates.
Dr Reddy’s has a diversified manufacturing footprint spread across India, the US, the UK, China and Mexico, and is considered a proxy for foreign investors.
Divi’s Labs: Rs 47 lakh (2003)
Founded by Murali Divi in 1990 after a split from Dr Reddy’s, it’s been on an uptick due to consistent and strong performance. Divi’s is one of the largest generic API manufacturers globally, and an established player in the highly-lucrative CDMO business (contract development and manufacturing organisation) with a strong relationship with six of the top 10 Big Pharma.
Sun Pharma: Rs 31 lakh (1994)
It was started by Dilip Shanghvi in 1983 with a capital of few thousand rupees. Listed in 1994, it is now the world’s fourth-largest generics player. It has had a steady streak upwards, underpinned by lucrative acquisitions like Taro, a strong, diversified portfolio in India, which gives it a commanding share of over 8%. The company’s offerings of branded generics and specialty generics in the US, provide an edge, fetching significant margins.
(* Denotes earliest available mcap date, as listing price data was unavailable)
(Text by Shilpa Phadnis, Mayur Shetty, Reeba Zachariah & Rupali Mukherjee)
Continue Reading

Business

Alphabet's balloon project, providing cell service, closing down

Published

on

OAKLAND: Google parent Alphabet Inc is shutting down its internet balloon business, Loon, which aimed to provide a less expensive alternative to cell towers, saying on Thursday that “the road to commercial viability has proven much longer and riskier than hoped.”
Founded in 2011, Loon aimed to bring connectivity to areas of the world where building cell towers is too expensive or treacherous by using balloons the length of tennis courts to float solar-powered networking gear high above the Earth. But the wireless carriers that Loon saw as buyers of its technology have questioned its technical and political viability.
“While we’ve found a number of willing partners along the way, we haven’t found a way to get the costs low enough to build a long-term, sustainable business,” Loon chief executive Alastair Westgarth said in a blog post.
Alphabet executive Astro Teller said in a separate blog post that despite Loon’s “groundbreaking technical achievements” over the past nine years, “the road to commercial viability has proven much longer and riskier than hoped.”
Westgarth said Loon’s legacy would include advancing helium balloons to last hundreds of days in the sky and developing communications equipment that could deliver cell coverage across an area 200 times bigger than an average tower can.
But among challenges were that a carrier would need several balloons at once, and each balloon cost tens of thousands of dollars and lasted only about five months.
Loon launched a pilot project in Kenya in 2020, years behind schedule after regulatory delays. Its partner, Telkom Kenya, did not immediately respond to a request for comment.
The technology previously proved successful in short projects to provide cell coverage in Peru and Puerto Rico when cell towers were downed by natural disasters. The company had pitched countries and international organizations on contracting with Loon to fly in during future emergencies, but gained little traction.
Loon said it may share its technology with carriers, governments or nonprofit groups aiming to bring high-speed internet to the last few places in the world.
The company employed 200 people as of 2019. It drew a $125 million investment that year from SoftBank’s HAPSMobile, which is working on floating cell equipment with drones.
HAPSMobile declined to comment on the financial effect of Loon’s shutdown but said it would “continue to work toward our goal of developing a commercial business.”
Separately, companies backed by billionaire entrepreneurs, such as Elon Musk, Richard Branson and Jeff Bezos, continue to look at offering internet connections using satellites in near-Earth orbit.
Alphabet previously shuttered what it calls “other bets,” or entities separate to Google, such as one working on power-generating kites. Alphabet has pressed some “bets” to raise funding from other investors or become self-sustaining. Loon struggled to attract investment.
The company maintains at least one “bet” tackling the skies – Wing, which is aiming to commercialize goods delivery by drone.
Continue Reading

Business

Australian govt PR website given 'news' status by Google, Facebook

Published

on

SYDNEY: Google and Facebook Inc have granted an Australian local government news provider status, drawing questions about the internet giants’ efforts to curate news media.
Bundaberg Council, a regional government, told Reuters a website it runs received classification as a Google “news source”, making it the country’s first local government with that accreditation.
That means a council-funded website containing only public relations content gets priority in Google News searches about the agriculture hub of 100,000 people, accompanied by a “news source” tag. Bundaberg also has the country’s only confirmed council-run Facebook page tagged as a “News & Media Website”.
The designation shows the gaps left in the country’s traditional news market as smaller publications wither and disappear. Bundaberg Council’s news website says it does not publish court and crime reports, politics, “investigative journalism” or “negative stories”.
“It’s just another example of the way these tech giants are allowed to operate outside any accountability framework at all,” said Denis Muller, an Honorary Fellow at University of Melbourne’s Centre for Advancing Journalism. “If they want to classify a council PR website as a news website, well, they can, and there’s nothing stopping them.”
Alphabet Inc’s Google and Facebook are fighting an Australian federal government plan to make them pay media outlets for original content that appears on their platforms, telling a Senate inquiry that the new rules may lead them to cancel some core services in the country.
A Google representative did not respond to a separate Reuters request for comment on Friday.
In a submission to the inquiry, Bundaberg Mayor Jack Dempsey said the new rules would “subsidise failed business models” and may have “unintended consequences, including … damage to new media entrants and innovative publishing models such as Bundaberg Now”.
Bundaberg Council’s executive officer of communications, Michael Gorey, told Reuters commercial media such as state broadcaster the Australian Broadcasting Corp still provided news in the region “albeit with less coverage than several years ago”.
“Commercial media have a strong focus on news such as crime, tragedies and local politics which Bundaberg Now chooses not to report,” he said in an email. “Bundaberg Now seeks to fill a gap in the media market with community news, local business and events. We see no evidence of market failure in Bundaberg to warrant federal government intervention”.
The City of Onkaparinga, in the country’s south near Adelaide, started news website Onkaparinga Now in 2018. A representative said the council has not applied for official news provider status with Google or Facebook.
Continue Reading