Latest news with #SaiIshwarbharathB
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
10-06-2025
- Business
- Yahoo
BigBasket to launch 10-minute food delivery across India by March 2026, executive says
By Sai Ishwarbharath B and Praveen Paramasivam BENGALURU (Reuters) -India's BigBasket plans to roll out 10-minute food delivery services nationwide by the end of fiscal 2026 as competition intensifies in the $7.1 billion quick-commerce space, its executive told Reuters on Tuesday. The Tata-backed grocery giant will take on established players such as Swiggy's Snacc, Blinkit's Bistro and Zepto Cafe, which already deliver coffee and ready-to-eat snacks in less than 15 minutes. BigBasket is targeting customers of the existing food delivery firms such as Zomato and Swiggy while also unlocking a new pool of customers, co-founder Vipul Parekh told Reuters. It plans to use dark stores to fuel the service, Parekh added, extending its foothold in India's booming quick-commerce market, which Blume Venture's Indus Valley report calls the "fastest-growing industry segment ever." Dark stores are small warehouses in densely populated neighbourhood buildings, where delivery partners, typically two-wheeler riders, pick up groceries or food for delivery. BigBasket, which brought online grocery delivery service to India in 2011, aims to increase its dark store count from about 700 currently to 1,000-1,200 by the end of 2025. Following a pilot run that began a month ago in the southern city of Bengaluru, the food delivery service will now be expanded to 40 dark stores by July-end, Parekh said. Currently, about 5%-10% of BigBasket's customers who are offered the service are clubbing quick-food items with their normal online orders, but this is expected to grow further, he added. The menu will comprise items from coffee chain Starbucks and Indian Hotels' food arm Qmin, both part of the Tata group in India. No external restaurants will be partnered with, the firm said. Meanwhile, Parekh dismissed media reports of BigBasket seeking external investors for fundraising and reiterated the company's plan to go public within the next 18-24 months. "One of the advantages we have is, being a part of Tata Group, you have enough internal capital available."
Yahoo
28-05-2025
- Business
- Yahoo
US-based Guidewire Software plans to double India headcount in three years
By Sai Ishwarbharath B BENGALURU (Reuters) -Guidewire Software, a U.S.-based insurance technology provider, plans to double its India headcount to 1,000 by the end of 2028 as it expands its professional services division, a top executive told Reuters. India's transformation from a low-cost back-office destination to a high-value innovation hub has prompted many multinational firms to establish local operations and ramp up hiring — a trend expected to accelerate in the coming years. These operations, commonly known as Global Capability Centers (GCCs), support their global parent in daily operations, finance, research and development, and product development functions. Guidewire's expansion in India would focus primarily on its Bengaluru centre, Chief Product Development Officer Diego Devalle said. "I foresee that as we pass to 2028, the growth will be bigger on services than on engineering." Professional services roles at Guidewire involve client-facing work, partnering with firms such as PwC, Capgemini, and Tata Consultancy Services to deploy and implement its software solutions for insurers. The planned expansion will see India representing nearly a quarter of the company's global workforce. As of July, the NYSE-listed firm had approximately 3,500 employees worldwide and is on track to reach 500 in India by year-end, across its Bengaluru and Chennai centres. Of the India workforce, around 400 employees are part of the engineering team, focusing on research and development as well as cloud operations, while the remainder are in professional services. India's GCC sector is expanding rapidly, with major players such as JPMorgan Chase, Target and Wells Fargo already operating local centres. GCCs are projected to contribute 2% of India's GDP by 2030, as per ICICI Securities, up from less than 1% currently. Sign in to access your portfolio
Yahoo
01-05-2025
- Business
- Yahoo
Zoho suspends $700 million chipmaking plan in latest setback for India, sources say
By Munsif Vengattil and Sai Ishwarbharath B NEW DELHI (Reuters) -Indian software firm Zoho has suspended its year-long pursuit of a $700 million plan to foray into chip manufacturing, sources familiar with the matter said, dealing another blow to the Indian government's ambitious semiconductor plans. Zoho struggled to find the right technology partner required to advise on the complex chipmaking processes, one of the sources said. Reuters reported on Wednesday that Indian billionaire Gautam Adani's group has also paused discussions with Israel's Tower Semiconductor for its $10 billion chip project following an internal evaluation by the Indian group. Zoho, valued at around $12 billion, offers cheaper alternatives to cloud-based software tools made by the likes of Microsoft. Its billionaire co-founder Sridhar Vembu is known for his popular and unconventional approach of locating business operations in rural villages. In a bid to diversify, Zoho planned to invest $400 million in a semiconductor facility in Karnataka state in south India. Vembu has said that the technology was vital for the nation. "Zoho could not find a tech partner despite an extensive search," said one of the sources. The entire chipmaking plan, first reported by Reuters in May 2024, has for now been suspended, said the two sources, who declined to be named as the decision is not public. It was not clear if Zoho will decide to revive its plans if a partner can be found. A Zoho spokesperson declined to comment. Representatives for Karnataka state did not immediately respond to a request for comment. Zoho's retreat will be a setback to Prime Minister Narendra Modi who has for several years tried to lure companies in his pursuit to make India a global chip manufacturing hub. India does not have a single operational chipmaking facility. Zoho, established in 1996, offers software and related services on subscription to businesses in 150 countries and has over 18,000 employees and more than 120 million users. Zoho's Silectric Semiconductor Manufacturing last year made a handful of hires and a formed a board to oversee chipmaking efforts, the source who gave the reason for the failed plan said. India's Karnataka government said in December it had given a landmark approval to Zoho's planned $400 million facility in Mysuru region, which would have generated 460 jobs and been the first such project in the state. Sign in to access your portfolio
