Tag IT Industry

LarsenAndToubro
L&T’s Subrahmanyan Concerns Over Declining Labor Migration in the Industry

Business and Industry Overview: 

Larsen & Toubro Infotech Ltd offers an extensive range of IT services like application development, maintenance and outsourcing, enterprise solutions, infrastructure management services, testing, digital solutions, and platform-based solutions to clients in diverse industries. It was a company that helped businesses with computers and technology. It started in 1996 and was part of a big Indian company called Larsen & Toubro (L&T). LTI helped banks, hospitals, factories, and insurance companies. It helped them store data safely. It used smart computers (AI) to solve problems. It kept information safe from hackers. It used machines to make work faster. It also helped businesses with cloud storage, websites, and mobile apps. 

LTI had offices in India, the US, Canada, Europe, and the Middle East. It worked with big companies in 30+ countries. Many Fortune 500 companies trusted LTI. It helped businesses move their work online. It kept their data safe. It helped them build better apps and websites. It made good money by helping businesses with technology. It grew fast because more businesses needed digital solutions. 

In 2022, LTI joined with another company called Mindtree. Together, they became LTIMindtree. This made them bigger and stronger. They could now help more businesses. Today, LTIMindtree is one of the biggest IT companies in India. It competes with TCS, Infosys, and Wipro. It keeps growing every year. It helps more businesses by using new technology. 

India’s IT industry is growing fast and becoming a global leader. In 2022, India improved its rank to 40th in the Global Innovation Index. The IT sector earned US$ 227 billion in 2022 and is expected to reach US$ 350 billion by 2026. This growth is driven by a strong demand for technology services and products. The Indian government is investing in areas like AI, cybersecurity, and cloud computing. These investments help the industry expand and innovate. 

In 2023, the IT sector created 2.9 lakh new jobs. Big companies like TCS, Wipro, and Infosys are hiring many people. The demand for tech workers continues to rise. By 2026, cloud services alone could create 14 million jobs in India. Many global companies are choosing India for outsourcing IT work because of its skilled workers and low data costs. 

India is becoming a hub for IT services. The country’s focus on innovation, its growing talent pool, and government support are key reasons for its success. As the IT industry keeps growing, more jobs and opportunities will open up for workers and companies alike. 

Latest Stock News: 

Shares of LTI MindTree went down by 4%, reaching their lowest price in a year, ₹4,466, on Wednesday. In just one month, the stock has dropped by 22%. Experts think this happened because the company was unsure about its new CEO, and there were problems with how much money it made. Venugopal Lambu became the new CEO in January 2025, replacing Debashis Chatterjee. The company’s profit went down 7.1% in the last three months of 2024, but its sales grew by 7.1%. LTI MindTree also wants its senior workers, like project leads and managers, to take a test on coding and math. This test will help decide how much they will get paid. The company has a plan called “My Career My Growth,” which helps workers grow in their jobs. The company also had to delay giving salary hikes in 2022, and that hurt its profits. The Indian IT industry is expected to grow by 6%-7% in 2025, but many companies are cutting back on spending. Generative AI could help save money but might also cause companies to make less money, so they need to find new ways to grow. 

Potentials: 

LTI MindTree’s new CEO, Venugopal Lambu, has a plan to help the company grow. He wants to build stronger relationships with clients and make the company more focused on AI technology. Lambu is also creating a five-year plan to guide the company’s future. He has already met many clients to understand their needs better. Lambu doesn’t plan to make big changes, but he wants to improve how the company works. He is also focusing on using AI to help the company and its clients become more productive. Lambu believes the market is changing quickly, and the company needs to adapt to meet client expectations. While he is hopeful about the future, he knows there are still challenges to face. 

Analyst Insights: 

  • Market capitalisation: ₹ 1,32,352 Cr. 
  • Current Price: ₹ 4,467 
  • 52-Week High/Low: ₹ 6,768 / 4,437 
  • Stock P/E: 29.0 
  • Dividend Yield: 1.46 % 
  • Return on Capital Employed (ROCE): 31.2 % 
  • Return on Equity: 25.0 % 

LTIMindtree Ltd has shown strong financial growth, with profits growing by nearly 25% every year for the past five years. The company has a good return on equity (ROE) of 25% and a return on capital employed (ROCE) of 31%. It also has a market value of ₹1.32 lakh crores and pays a decent dividend yield of 1.46%. Even though the stock price has dropped 14% in the past year and promoter holding has gone down by 5.5%, the merger with Mindtree could help the company grow even more. The stock price is reasonably priced compared to its competitors. Based on the company’s strong financials and growth potential, the stock seems like a good investment in the long term. So, it is a Buy recommendation, but investors should be careful in the short term because of the recent price drops. 

Cyient Ltd
Cyient Shares Surge 4% as Appointed New CEO and Executive Director of DET Business

Business and Industry Overview

Cyient (formerly Infotech Enterprises Limited) is an Indian multinational technology company focused on engineering, manufacturing, data analytics, networks, and operations. It was established in 1991 in Hyderabad as Infotech Enterprises Ltd. Infotech Enterprises was renamed Cyient in 2014. Cyient is one of the world’s top 30 outsourcing companies. It operates through eight strategic business units: Aerospace and defence, Transportation, Industrial, Energy and Natural Resources, Semiconductor, Internet of Things and Analytics, Medical and Healthcare, Utilities and geospatial, Communications, and Design-Led Manufacturing (Cyient DLM). Its IPO was completed in July 2023 with proceeds of ~700 crore. It serves a global customer base through its subsidiaries and joint ventures in the USA, UK, Germany, Japan, Australia, Singapore, and India. In FY23, the company recognised Rs. 941.9 crore as goodwill. 

Cyient’s range of services include digitization of drawings and maps photogrammetry computer-aided design/engineering (CAD/CAE) design and modelling repair development engineering reverse engineering application software development software products development consulting analytics and implementation. Cyient’s industry focus includes aerospace and defence, healthcare, telecommunications, rail transportation, semiconductor, geospatial, industrial, and energy. Cyient offers full-scale electronic and mechanical aerospace manufacturing engineering solutions—from conceptualization to design and maintenance. It has expertise in electronics manufacturing, wire cable harness, PCB assembly, in-circuit testing, aerospace CNC machining, precision tooling, vibration testing, and first article inspection and its portfolio covers the design, build, and maintenance phases of the product life cycle to provide OEMs with a single source for optimizing aerospace parts manufacturing processes. As of H1FY24, company has $100Mn Large deals (their largest deal pipeline ever).  

India’s IT industry is growing fast. In 2022, it made $227 billion, and in 2023, this number increased to $245 billion. Experts predict that by 2026, the industry will reach $350 billion and contribute 10% to India’s economy. Spending on IT in India is also increasing. In 2024, companies are expected to spend $138.6 billion, which is 11.1% more than last year. The software industry in India is also growing and is expected to reach $100 billion by 2025. India is also becoming a big player in artificial intelligence (AI). The market for data labeling, which helps AI learn, was worth $250 million in 2020 and is expected to grow to $7 billion by 2030. India’s IT companies are expanding globally, setting up offices in different countries. In 2023, IT exports brought in $194 billion, with IT services making up more than half of that amount. Other major areas of IT exports include software products and engineering services.The IT industry is also creating many jobs. In 2023, 2.9 lakh (290,000) new jobs were added, bringing the total number of IT workers in India to 5.4 million. In short, India’s IT industry is booming, with more spending, higher exports, and more jobs being created every year. Cyient DET is one of the major player with Market Cap ₹ 15,153 Cr.  

Latest Stock News

Cyient DET made INR 1,480 crores in revenue, showing a 2.1% increase from the last quarter but a 0.8% drop compared to last year. In constant currency terms, revenue grew by 2.4% quarter-on-quarter but declined by 1.9% year-on-year. The company’s EBIT (profit before interest and taxes) stood at INR 200 crores, with a margin of 13.5%. However, PAT (profit after tax) was INR 124 crores, reflecting a 28.3% decline from the previous year. Despite this, the order intake showed a positive trend, growing by 5% year-on-year. 

Cyient has appointed Sukamal Banerjee as its new CEO after Karthikeyan Natarajan resigned last month. Natarajan stepped down following the company’s poor financial results in the third quarter. As of FY23, the company has 40 wholly owned subsidiaries and 1 proportionate subsidiary.  

The company’s performance in December 2024 was not strong. Its profit after tax (PAT) dropped by 34.2%, and its profit before tax (PBT), excluding other income, fell by 17.73%. The company’s ability to turn sales into profit was at its lowest, with an operating profit margin of 14.48%. 

The stock is currently in a downward (bearish) trend. Since January 21, 2025, its trend has worsened, and its value has lost 21.66%. Several technical indicators, such as MACD, Bollinger Band, and KST, also suggest a negative outlook. 

Over the last year, the stock has not performed well compared to the broader market. While the BSE 500 index showed a small gain of 0.24%, this stock lost 34.84% in value, meaning it has significantly underperformed. 

The Potential of the Company

Cyient has a great chance to grow because more and more businesses around the world need digital, engineering, and manufacturing solutions. The company is focusing on industries like aeroplanes, defence, healthcare, and telecommunications, which are expanding fast. However, there are some risks, like economic slowdowns, new technology trends, and strong competition from other IT companies. 

To grow bigger, Cyient is working on new projects and teaming up with other companies. It is improving its skills in artificial intelligence, data analysis, and automation. The company is also buying other businesses to improve its services and reach more customers. For example, it acquired companies like Citec, Grit, and Celfinet to strengthen its offerings. 

Cyient is also making partnerships with big companies like Thales and working with schools to train students for future jobs. These efforts will help the company stay strong and successful in the fast-changing world of technology. 

Analyst Insights 

Key Financial Metrics: 

  • Market Cap: ₹15,011 Cr. 
  • Stock P/E: 23.6 
  • Dividend Yield: 2.22% 
  • ROCE (Return on Capital Employed): 21.9% 
  • ROE (Return on Equity): 18.8% 

Cyient has shown steady financial performance despite some short-term declines. The company has successfully reduced its debt and continues to maintain a healthy dividend payout of 51.8%, which is attractive for long-term investors. The stock has strong fundamentals with good returns on capital and equity. However, the recent earnings decline and stock price volatility present some risks. 

Recommendation: 

Considering the company’s efforts to expand and improve profitability while maintaining strong financial discipline, we recommend a Hold position. Investors should monitor future growth strategies, market conditions, and financial performance before making further decisions. 

Infosys Ltd Q3 Earnings
Infosys Ltd: Driving Digital Transformation- Q3 Results and Investment Insights

Infosys Ltd: Overview 

Infosys Ltd is a global leader in consulting, technology, outsourcing, and next-generation digital services, empowering clients to achieve their digital transformation goals. As India’s second-largest IT Company after TCS, Infosys has a robust presence in both traditional and digital services. This segment focuses on innovative solutions that enable clients to modernize their businesses. It includes offerings that enhance customer experience, leverage AI-based analytics, utilize big data, engineer IoT solutions, modernize legacy systems, migrate to cloud platforms, and implement advanced cyber security systems. Infosys serves a prestigious and diversified client base, including global organizations such as ICICI Bank, Daimler Mercedes-Benz, HSBC Bank, Goldman Sachs, Johnson & Johnson, Accenture, the US Army, US Navy, Lockheed Martin, IBM Corporation, and Deutsche Bank. The company’s dual focus on innovation in digital services and expertise in core IT solutions positions it as a vital partner for businesses navigating the challenges of digital transformation. The global IT services industry is experiencing rapid transformation driven by advancements in technologies like artificial intelligence, cloud computing, big data, IoT, and cyber security. As businesses across industries adopt digital-first strategies, demand for IT and a digital service continues to rise. India remains a key player in the IT sector, with a competitive edge in cost efficiency, skilled workforce, and strong government support for technology-driven initiatives. Companies like Infosys benefit from these advantages, capturing market share in global markets, including North America, Europe, and APAC. The IT sector’s growth trajectory is fuelled by factors such as increased demand for digital transformation, the rise of cloud adoption, and a growing focus on AI and machine learning. Despite challenges like global economic uncertainty and evolving regulations, the industry’s long-term prospects remain promising. Infosys, with its diversified service offerings and strategic investments in innovation, is well-positioned to capitalize on this growth. 

Latest Stock News 

The Financial Services sector in the U.S. continues to exhibit strong growth, while European Financial Services have shown signs of recovery during the third quarter. In the U.S., the Retail and Consumer Products sector has improved due to reduced discretionary pressures. However, the automotive sector in Europe remains sluggish, with other industries showing steady demand driven by cost optimization rather than discretionary spending. Over 100 new Generative AI agents are under development for integration into client operations, with current clients already benefiting from these tools. The company has revised its revenue growth guidance to 4.5%–5% in constant currency terms for the fiscal year, maintaining an operating margin guidance of 20%–22%. 

Infosys plans to onboard 15,000–20,000 freshers in FY26 and 5,591 employees added in the current quarter. Wage hikes are scheduled in two phases, starting January 1 and April 1, with an anticipated impact of 6%–8% on India margins. Challenges persist, with furloughs impacting revenue contributions from top clients and a decline in their overall share. Additionally, currency fluctuations and third-party costs remain influential factors. Discretionary spending in Hi-Tech and Telecom sectors continues to lag, with no significant signs of recovery yet. On the competitive landscape, pricing remains stable, with a 3.6% year-on-year increase attributed to value-based selling. Utilization rates are at 86%, slightly exceeding the preferred range of 83%–85%, reflecting effective resource management during growth. The company maintains a strategic focus on cost optimization and vendor consolidation as core growth drivers. 

Business Segments: 

  • Financial Services: This is the largest segment, serving banking, financial services, and insurance (BFSI) clients. Infosys provides solutions for digital banking, payments, wealth management, risk, and compliance, helping financial institutions enhances customer experience and operational efficiency. 
  • Retail and Consumer Packaged Goods (CPG): This segment caters to retailers and CPG companies by offering solutions in areas like e-commerce, supply chain optimization, customer engagement, and omni channel strategies. Infosys helps clients navigate the rapidly evolving retail landscape and consumer behaviour. 
  • Communication, Media, and Technology (CMT): Infosys supports clients in telecommunications, media, entertainment, and technology by offering innovative solutions in digital experience, 5G, AI, and IoT. This segment focuses on enhancing connectivity, content delivery, and digital transformation. 
  • Energy, Utilities, Resources, and Services: This segment provides solutions for companies in the energy, utilities, and resources sectors, focusing on digital transformation, sustainability, and operational optimization. It includes services in areas like smart grids, renewable energy, and asset management. 
  • Manufacturing: Infosys supports manufacturing clients with solutions for digital manufacturing, supply chain visibility, and product lifecycle management. It helps companies improve efficiency and adopt smart factory technologies. 
  • Life Sciences and Healthcare: Infosys offers solutions to pharmaceutical, biotechnology, and healthcare companies, including digital health platforms, clinical trial management, and supply chain optimization, aiding in patient-centric care and innovation. 
  • Hi-Tech: This segment serves technology companies, offering services in engineering, R&D, and product development. Infosys helps clients accelerate innovation and bring high-tech products to market faster. 

Subsidiary Information: 

  • Infosys BPM Ltd: Infosys BPM (Business Process Management) Ltd. is the business process outsourcing arm of Infosys, focusing on delivering end-to-end transformative BPM services. It caters to industries such as financial services, retail, telecommunications, and healthcare, offering services in areas like customer experience management, finance and accounting, human resources, legal process management, and analytics. Infosys BPM emphasizes digital transformation, automation, and data-driven decision-making to enhance operational efficiency and business agility for clients globally. 
  • Infosys Automotive and Mobility GmbH & Co. KG: Infosys Automotive and Mobility GmbH & Co. KG is a subsidiary dedicated to the automotive and mobility sectors. Based in Germany, it focuses on providing digital engineering, software solutions, and IT consulting services to leading automotive manufacturers and suppliers. Its offerings include connected vehicle solutions, autonomous driving technology, electric vehicle innovation, and smart manufacturing. The subsidiary plays a pivotal role in addressing the evolving needs of the automotive industry, such as sustainability, electrification, and mobility-as-a-service. 
  • Infosys McCamish Systems LLC: Headquartered in Atlanta, Georgia, Infosys McCamish Systems LLC specializes in providing business process outsourcing services and software solutions for the insurance and financial services industry. Its expertise includes life insurance, annuities, retirement services, and healthcare. The company delivers end-to-end insurance policy administration, claims processing, and compliance solutions. With its scalable platforms and innovative technologies, Infosys McCamish supports insurers in improving operational efficiency and customer satisfaction. 
  • EdgeVerve Systems Limited: EdgeVerve Systems Limited, a wholly-owned subsidiary of Infosys, develops and deploys cutting-edge software products and platforms. Its flagship products include Finacle (a leading banking platform) and AssistEdge (an automation and AI-driven customer service platform). EdgeVerve focuses on enabling digital transformation for enterprises across industries, offering solutions in automation, AI, and blockchain to enhance productivity, streamline processes, and drive innovation. 
  • WongDoody Inc.: WongDoody, Inc., a creative and customer experience company acquired by Infosys in 2018, specializes in customer experience design and advertising. With headquarters in the United States, it provides branding, marketing strategy, and digital design services. WongDoody works with global clients to create compelling brand narratives and innovative customer experiences, aligning business goals with creative execution. It is a key player in Infosys’ effort to enhance its digital and customer-centric service offerings. 

Q3 FY24 & Business Highlights 

  • Revenue of ₹41764 crore in Q3 FY25 up by 7.6% YoY from ₹38821 crore in Q3 FY24.  
  • EBITDA of ₹10115 crore in this quarter at a margin of 24% compared to 24% in Q3 FY24. 
  • Profit of ₹6822 crore in this quarter compared to a ₹6113 crore profit in Q3 FY24. 

Financial Summary 

INR Cr. Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 38821 41764 146767 153670 
Expenses 29684 31649 111637 117245 
EBITDA 9137 10115 35130 36425 
OPM 24% 24% 24% 24% 
Other Income 789 859 2701 4711 
Net Profit 6113 6822 24108 26248 
NPM 15.7% 16.3% 16.4% 17.1% 
EPS 14.7 16.4 58.1 63.2