Latest news with #HaripriyaSuresh
Yahoo
2 days ago
- Business
- Yahoo
TCS revenue falls short as tariffs cast shadow on client spending
By Sai Ishwarbharath B and Haripriya Suresh BENGALURU (Reuters) -Tata Consultancy Services, India's top software-services exporter, missed quarterly revenue estimates on Thursday as its clients stayed cautious about non-essential spending amid tariff-related uncertainty. The revenue shortfall at TCS, the first Indian tech major to report results, raised concerns about future demand for the country's $283 billion IT sector and dragged down U.S. listed shares of rivals Infosys and Wipro. "The trend of delays in decision-making and project starts with respect to discretionary spends has continued and intensified in this quarter," CEO K Krithivasan said on a conference call. While it is "too early" to predict when growth will resume, the passage of the U.S. spending bill could provide some clarity by the end of July or early August, Krithivasan said. Consolidated sales in the first quarter rose 1.3% to 634.37 billion rupees ($7.40 billion), missing analysts' average estimate of 646.66 billion rupees, according to data compiled by LSEG. Uncertainty around U.S. tariffs has quashed IT companies' hopes of a revival in client confidence and spending in its biggest market. A survey in May showed two in five tech executives had deferred discretionary projects. TCS's revenue in four out of its six verticals fell compared to the same period last year, while banking and financial services' revenue grew 1% and tech services rose 1.8%. Its total order bookings stood at $9.4 billion during the quarter, versus $12.2 billion in the previous quarter and $8.3 billion in the year-ago period. "The weak topline numbers highlight cautiousness among clients," said Sagar Shetty, research analyst at StoxBox. "This theme would likely spill over to (other) tier 1 companies as well. Drag in deal wins also undermines revenue visibility, which might warrant revision in upper end of guidance (for other companies)," Shetty said. HCLTech, Infosys and Wipro report results later in July. U.S.-listed shares of Infosys fell 3.3%, while those of Wipro were down 4.2% as of 1920 IST. TCS's net profit rose 6% to 127.60 billion rupees, while analysts expected 122.16 billion rupees. The profit beat was largely tied to a wage hike delay and a jump in other income. ($1 = 85.6690 Indian rupees)
The Star
3 days ago
- Business
- The Star
India's TCS misses first-quarter revenue view
BENGALURU (Reuters) -India's Tata Consultancy Services reported lower-than-expected first-quarter revenue on Thursday as clients remained cautious about discretionary spending amid tariff-related uncertainty. Consolidated sales at India's largest IT services firm by revenue rose 1.3% year-on-year to 634.37 billion rupees ($7.40 billion) in the June quarter. Analysts, on average, expected 646.66 billion rupees, as per data compiled by LSEG. ($1 = 85.6690 Indian rupees) (Reporting by Sai Ishwarbharath B and Haripriya Suresh; Editing by Janane Venkatraman)
Yahoo
02-06-2025
- Business
- Yahoo
Infosys CEO among highest paid in Indian IT as compensation rose 22% to $9.4 million last fiscal
By Haripriya Suresh and Sai Ishwarbharath B BENGALURU (Reuters) -Infosys CEO Salil Parekh's compensation rose 21.7% to 806.2 million rupees ($9.44 million), the company said in its annual report on Monday, making him one of the highest-paid Indian IT chiefs currently in office. Parekh, the longest-serving non-founder CEO at the IT company, earned a fixed salary of 79.4 million rupees and bonuses of 231.8 million rupees. The largest portion, 495 million rupees, resulted from the chief executive of India's No. 2 IT services firm exercising his stock options. In comparison, Parekh earned $7.9 million in 2024 and $6.76 million in 2023, with the rise in pay, mainly due to a greater number of stock options exercised during the year. For the financial year 2025, Infosys reported a revenue growth of 4.2% in constant currency terms, falling short of its forecast of 4.5%-5%. For the current fiscal year, it forecast a flat to 3% growth in revenue, signalling a weaker business environment. India's $283-billion IT sector is facing another year of slowing growth, partly due to the U.S. tariff policies, which complicate forecasting market conditions in key markets and client segments. "Majority of Infosys revenue is from the U.S. and other global markets. The compensation is in line and consistent with what companies of this scale and size pay globally. Boards of Indian tech companies are indeed aware and need their leaders to be retained and paid appropriately in this challenging environment," said K Sudarshan, managing director at executive search firm EMA Partners. K Krithivasan, CEO of Infosys' larger rival Tata Consultancy Services earned $3.11 million, and smaller rival Wipro's CEO Srinivas Pallia earned $6.28 million, according to their latest annual report. Infosys is one of the two among India's top five IT companies that have retained their CEO at the helm over the last 18–24 months, with HCLTech being the other. ($1 = 85.3600 Indian rupees)
Yahoo
02-06-2025
- Business
- Yahoo
Infosys CEO among highest paid in Indian IT as compensation rose 22% to $9.4 million last fiscal
By Haripriya Suresh and Sai Ishwarbharath B BENGALURU (Reuters) -Infosys CEO Salil Parekh's compensation rose 21.7% to 806.2 million rupees ($9.44 million), the company said in its annual report on Monday, making him one of the highest-paid Indian IT chiefs currently in office. Parekh, the longest-serving non-founder CEO at the IT company, earned a fixed salary of 79.4 million rupees and bonuses of 231.8 million rupees. The largest portion, 495 million rupees, resulted from the chief executive of India's No. 2 IT services firm exercising his stock options. In comparison, Parekh earned $7.9 million in 2024 and $6.76 million in 2023, with the rise in pay, mainly due to a greater number of stock options exercised during the year. For the financial year 2025, Infosys reported a revenue growth of 4.2% in constant currency terms, falling short of its forecast of 4.5%-5%. For the current fiscal year, it forecast a flat to 3% growth in revenue, signalling a weaker business environment. India's $283-billion IT sector is facing another year of slowing growth, partly due to the U.S. tariff policies, which complicate forecasting market conditions in key markets and client segments. "Majority of Infosys revenue is from the U.S. and other global markets. The compensation is in line and consistent with what companies of this scale and size pay globally. Boards of Indian tech companies are indeed aware and need their leaders to be retained and paid appropriately in this challenging environment," said K Sudarshan, managing director at executive search firm EMA Partners. K Krithivasan, CEO of Infosys' larger rival Tata Consultancy Services earned $3.11 million, and smaller rival Wipro's CEO Srinivas Pallia earned $6.28 million, according to their latest annual report. Infosys is one of the two among India's top five IT companies that have retained their CEO at the helm over the last 18–24 months, with HCLTech being the other. ($1 = 85.3600 Indian rupees) Sign in to access your portfolio
Yahoo
07-05-2025
- Business
- Yahoo
Trump's movie tariff threat alarms India's film makers
By Haripriya Suresh, Saurabh Sharma and Rishika Sadam BENGALURU/NEW DELHI/HYDERABAD (Reuters) -India's film industry, which earns roughly 40% of its overseas revenue from the United States, sounded the alarm this week about higher costs after President Donald Trump threatened a tariff of 100% on all movies produced beyond American soil. Film makers, producers and distributors in one of the world's largest film industries by output struggled to weigh the likely impact of such a tariff as Trump provided scant details, stirring more questions than answers. "The real question is how the term 'foreign produced' will be defined, and until that's clear, it's hard to say anything," said film maker Anubhav Sinha, known for his Netflix streaming series, "IC 814: The Kandahar Hijack". "It's not yet clear whether services like post-production will be affected." India's film industry employs 272,000 people, with overseas box office takings of about 20 billion rupees ($237 million) in fiscal 2024, or a tenth of total earnings, Deloitte and studio grouping the Motion Picture Association said in a report. Key Hollywood films with India scenes are Oscar-winners such as the rags-to-riches tale "Slumdog Millionaire", and the Osama bin Laden manhunt thriller, "Zero Dark Thirty", along with rom-com "Eat, Pray Love", and Batman outing "The Dark Knight Rises". In the absence of details on the planned levy, film producers worry it could double the cost of exporting their films to the United States, where people of Indian descent are estimated to number 5.2 million. "The United States is one of the most important overseas markets for Indian cinema, largely due to the substantial diaspora," said producer Madhu Bhojwani, reponsible for hits such as "Airlift", on workers evacuated from Kuwait during the Gulf War. "Any increase in ticket prices resulting from these tariffs would directly affect audience turnout, compounding the challenges posed by evolving consumer behaviour and broader industry headwinds." The cost-effective South Asian nation has also grown in stature as Hollywood's preferred hub for on-ground production and post-production services, especially in visual effects, since it offers a skilled talent pool. "Almost 10 to 15 (foreign) movies are shot in India every year, and our movie industry will be impacted very badly," said film trade analyst Komal Nahta. LIKELY HIT TO REVENUE Prominent Indian actor and producer Prakash Raj called Trump's move "tariff terrorism". If the tariff covers post-production services, the consequences will be bigger, added Bhojwani, the co-founder of Emmay Entertainment and Motion Pictures. "We can expect a potential decline in outsourced work from U.S. studios to Indian vendors, which could have notable implications for the Indian media services sector," she said. "If revenue from the U.S. drops, it could affect budget planning and profitability for Indian production houses," said Pradeep Dwivedi, chief executive of Eros International Media. "Big-budget films counting on overseas revenue could be restructured or scaled back." The move will also hurt smaller releases in the United States. "Even a 30% drop in revenue for such mid-scale movies would be a significant dent," said Raj Kandukuri, producer of a well-regarded film, "Pelli Choopulu", in India's southern language of Telugu. "There are a sizeable number of students in the United States who watch movies, they will not spend high on ticket prices." The planned levy might also drive a broader shift to digital platforms. "U.S. distributors might be less inclined to pick up Indian titles due to the increased cost," Dwivedi said. "This could result in fewer screens, smaller releases, and a shift toward digital platforms instead of theatrical. The tariff would likely accelerate a move toward direct-to-digital releases on platforms like ErosNow, Netflix, Amazon Prime, and Hulu." ($1=84.2560 rupees) (Reporting by Haripriya Suresh in Bengaluru, Saurabh Sharma in New Delhi, and Rishika Sadam in Hyderabad; Editing by Dhanya Skariachan and Clarence Fernandez)
