Month: April 2012

In our recent report, on the emergence of United States of India, we had written about the rise of Regulatory Powers to Curb Corruption at High Places including Central Government Ministries. We’d like to prove one such point involving the Food Corporation of India which for over 8 years bought Supplies from 3 companies and everybody from the Food and Civil Supplies Ministry to the CEO of the company were hand in Glove in the operation.

CCI – Competition Commission of India – IN CCI’s report dated 23 April 2012, (more…)

TCS reported 4QFY12 revenue of US$2.65bn, up 2.4% QoQ, in-line, and better
than -2% for Infosys. Consolidated volumes grew 3.3% QoQ. Rupee revenue at Rs133bn, and EBITDA margin at 29.5% were also in line with street expectations. Net profit at Rs28.9bn was higher than estimate led by higher forex gain of Rs1.1bn.

3.3% volume and 2.4% USD revenue growth (qoq) were stable and broad-based across major verticals, except BFSI. Pricing declined 97bp qoq. The new deals have come across (more…)

Sr. Technology Analyst Mr. Nimish Joshi of CLSA has written an Open Letter to Infosys CEO, Mr Shibulal. Open Letters are normally written when their is arrogance or refusal to accept by one party, as was the case between Dr Manmohan Singh and his Economic Adviser Dr Raghu Rajan.

In this case, we are not sure why Mr. Joshi chose this medium. He begins by saying that Infosys has been the worst performing IT stock in the last 4 years with mere returns of 54% compared to 137% by TCS. Further, Mr. Joshi raises 3 issues,

Loss of revenue and EBIT market share – Revenue Market Share has dropped 350 bps in the last 5 years. Infosys investors are worried about the adverse impact Infosys’ current (more…)