Tata Teleservices Q1 Results: Net loss rises marginally by 0.5% YoY, revenue down by 12%
Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
15 minutes ago
- Economic Times
Fed likely to hold steady, but September rate cut hopes hinge on data: Seth R Freeman
So, it is positive. It is actually very much related to enthusiasm for AI and the efficiencies coming from AI. "The other aspect that the Fed is looking at is employment rates. So, there is a possibility, the Fed is certainly getting a lot of pressure from the administration, but the chairman has been quite clear that that they are characteristically looking at data and so it may be a little too early. It kind of depends how things look here in the US right after Labour Day," says Seth R Freeman, GlassRatner Advisory. Tell us there are a lot of cues to watch out for as far as Wall Street is concerned, we have a lot of earnings coming out. We also have the important FOMC meet. Now, most of us are expecting the rates to be held steady and the Fed has conveyed this in no uncertain terms despite the pressure coming in from the Trump government. But it is really the commentary that we will be watching out for the hopes of a rate cut perhaps in the month of September. Is that on the cards? Is that talk going to be on the table? Seth R Freeman: Well, that the situation may be, the viewpoint may change now that the deal has been struck with the EU and this concern about what the real effect of tariffs would be here on the US economy. The other aspect that the Fed is looking at is employment rates. So, there is a possibility, the Fed is certainly getting a lot of pressure from the administration, but the chairman has been quite clear that that they are characteristically looking at data and so it may be a little too early. It kind of depends how things look here in the US right after Labour Day. Let us also talk about the IT sector if you could. Now in the US all these major tech companies including the likes of Meta, Microsoft, Amazon they are going to report their earnings this week. So, first up, what is your expectation there and also if you could help us with your stance on the Indian IT sector given the kind of slowdown that we have seen and we are also hearing about workforce cutting, the announcements coming in from TCS. So, what kind of impact do you see from the AI spending going up? Seth R Freeman: Well, at the end of last week, Google was indicating that its business is very robust and really starting to get some payback from AI and there has been a concern that AI would and the fact that you can do searching for example and you get an AI result that maybe you do not have to dig around for different links and that is going to hurt advertising revenue. But I am actually expecting the earnings announcements to be fairly positive across the sector. Certainly, investors think it is going to be positive because look at the gains we have had in the S&P 500 and the Nasdaq. So, it is positive. It is actually very much related to enthusiasm for AI and the efficiencies coming from AI.
Time of India
29 minutes ago
- Time of India
Explained: Why TCS firing 12,000 employees may be a canary in the mine and what it means for investors
When Mark Zuckerberg announced in November 2022 that Meta would slash its workforce by 13% and lay off around 13,000 employees, shareholders celebrated the cost-cutting exercise with double-digit stock gains in the following days. But Tata Consultancy Services ' ( TCS ) decision to fire 12,000 workers tells a vastly different story, one that has investors running for the exits. India's largest IT exporter has decided to lay off roughly 2% of its workforce, or over 12,000 employees, as macro uncertainties and AI-led technology disruptions continue to pummel business demand. The announcement sent TCS shares tumbling up to 1.7% to a day's low of Rs 3,081.20 on BSE, adding to the stock's brutal 25% decline in calendar year 2025. The pain spread to peers like Infosys , which fell 2% during the day. Explore courses from Top Institutes in Please select course: Select a Course Category PGDM Design Thinking Data Science healthcare Project Management Product Management Degree CXO Management Others Technology Data Science others Leadership Cybersecurity Data Analytics Healthcare MBA Digital Marketing Public Policy Skills you'll gain: Financial Analysis & Decision Making Quantitative & Analytical Skills Organizational Management & Leadership Innovation & Entrepreneurship Duration: 24 Months IMI Delhi Post Graduate Diploma in Management (Online) Starts on Sep 1, 2024 Get Details by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Indonesia: Unsold Sofas Prices May Surprise You (Prices May Surprise You) Sofas | Search Ads Search Now Also Read | TCS shares slip nearly 2% after company announces over 12,000 layoffs Why TCS layoff is worrying The contrast with Meta's experience reveals the fundamental difference between TCS' situation and typical tech layoffs. While Meta was cutting excess hires during pandemic-era growth, TCS is grappling with demand-related issues. Live Events Jefferies delivered a stark warning about what TCS' workforce reduction really means: "TCS' move to cut 2% of its workforce may lead to execution slippages in the near-term and higher attrition in the longer-run for the firm and reflects a weak demand environment for the sector. With most deal wins being led by cost-optimisation initiatives and involving AI-led productivity pass-through, IT firms unable to gain share may have to resort to lay-offs." The Nifty IT index has become 2025's worst-performing sector, plunging 24% from its peak into bear market territory. This isn't just about one company's struggles; it's a sector-wide crisis that's reshaping how investors view India's once-celebrated IT services industry. Jefferies explained the broader implications: "Focus on cost-cutting may hurt TCS in longer-run... The move by TCS reflects its growing focus on conserving margins amid continued growth pressures and is the third such move in the past 3 months after deferral of wage hikes in Apr-25 and the benching guidelines introduced in Jun-25, which restricted the non-billable period of an employee to 35 days/year." The brokerage warned that despite TCS traditionally enjoying lower-than-industry attrition levels due to job stability, "the ongoing lay-offs will hurt employee morale and could potentially lead to execution slippages. In the longer run, such policies could drive a sharp rise in attrition, similar to what was seen at Cognizant during 2020-22." Also Read | TCS layoffs: IT major to mass fire 12,000 senior, mid-level staffers amid AI push The AI factor What makes this downturn particularly concerning is its root cause: artificial intelligence is fundamentally changing how IT services work gets done. Jefferies noted that "with cost-optimisation being the key driver for new deal wins, clients are asking for productivity benefits—a trend which is also growing due to the rise in AI adoption." This creates a vicious cycle where "IT firms do more work with the same number of employees (wallet share gains) or the same work with fewer employees. The 2nd scenario eventually leads to lay-offs as redeployment of bench takes longer when demand environment is weak." Elara downgraded TCS to Accumulate from Buy, cutting its target price to Rs 3,770 from Rs 3,970. The brokerage cited multiple headwinds: "discretionary spend continues to be under heightened scrutiny, the new tariff order is adding further pain to some sectors such as Pharma, spending in Energy has reduced due to policy changes and geopolitical tensions, and BFSI is subdued in Europe and the UK." Elara is building in modest recovery expectations: "We build in some recovery from FY27 and factor in ~3.5% growth in FY27E. We cut FY26E/27E EBIT margin estimates by 50/60bps, led by a rise in attrition and possible further pressure on margin due to the new BSNL deal." For investors, the message is clear: this isn't a temporary blip but a structural shift requiring careful stock selection. Jefferies advised: "Given the current demand uncertainties, earnings outlook for IT firms may remain subdued, due to which we remain selective on the sector." Among large caps, the brokerage favors Infosys and HCLTech, noting that HCL "has emerged as a strong alternative to TCS given that it trades at similar PE multiples despite stronger growth outlook and similar FCF conversion." For mid-caps, Coforge and Mphasis get the nod "given their stronger growth outlook." TCS' layoffs aren't just about one company managing costs, but a canary in the coal mine for India's IT services industry, as Jefferies puts it.
Business Standard
an hour ago
- Business Standard
Pfizer Ltd Spurts 6.26%
Pfizer Ltd has lost 0.1% over last one month compared to 3.16% gain in BSE Healthcare index and 3.28% drop in the SENSEX Pfizer Ltd rose 6.26% today to trade at Rs 5689.95. The BSE Healthcare index is up 0.15% to quote at 45404.45. The index is up 3.16 % over last one month. Among the other constituents of the index, Sanofi Consumer Healthcare India Ltd increased 4.43% and Vimta Labs Ltd added 2.26% on the day. The BSE Healthcare index went up 13.01 % over last one year compared to the 0.04% fall in benchmark SENSEX. Pfizer Ltd has lost 0.1% over last one month compared to 3.16% gain in BSE Healthcare index and 3.28% drop in the SENSEX. On the BSE, 1 shares were traded in the counter so far compared with average daily volumes of 2724 shares in the past one month. The stock hit a record high of Rs 6452.85 on 02 Sep 2024. The stock hit a 52-week low of Rs 3742.9 on 07 Apr 2025.
