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In today’s newsletter:

• Infosys slashes FY24 revenue guidance
• Dunzo in legal trouble over dues 
• Data protection takes centre stage in monsoon session

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Infosys, India’s second-largest IT company, has slashed its revenue growth guidance to 1-3.5% for the full year, down from its previously announced 4-7%— signalling a tough road ahead. 

• Revenue was at $4,617 million during the quarter, up 1% in constant currency
  
  
• Profit missed estimates, down 3% sequentially
  
  
• EBIT margin at 20.8%, down 20 bps
  
  
• Large deal TCV at $2.3 billion, up from $2.1 billion

Two major factors were behind the guidance cut, according to Chief Executive Officer Salil Parekh:

• Clients are stopping or slowing down transformation and discretionary programs
  
  
• Deal signings and start dates have been delayed, and revenue from large deals will only be seen in the later part of the year

More on that here

The employee counts did not inspire much confidence either, as Infosys ended the quarter with nearly 7,000 fewer employees than the last quarter.

• This was despite attrition coming down to 17.3%

Is attrition not being backfilled? CFO Nilanjan Roy said that attrition was being backfilled primarily through upskilling existing employees and using freshers who were onboarded and currently on the bench.

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Troubles do not seem to be ending at Dunzo, which has been in the news this week for all the wrong reasons. From deferring salaries and impending layoffs to legal notices now being served, the company faces a series of unfortunate events.

Dunzo has not paid Facebook for advertising services, resulting in a legal notice from the latter demanding payment of Rs 1.5 crore.

• Google, Dunzo’s second-largest shareholder, has also sent a legal notice to the startup

Additionally, Nilenso, which provided engineers to Dunzo, is yet to be paid.

• The total dues are estimated to be between Rs 5-6 crore

Of course, since there are pending dues, there must be measures to control expenses. Last night, we reported that Mukund Jha, CTO and co-founder of Dunzo, asked employees to brace for layoffs.

• Seniors estimated at least 200 employees will be let go

This will be the third round of job cuts in seven months when announced.

“We are definitely considering layoffs and the size will be decided either tomorrow [July 20] or day after [July 21]. Within this week we will communicate to employees,” Jha said in an all-hands meeting on July 19.

Find out more

India's data protection bill has been a long time coming. The first version, the Personal Data Protection Bill, was tabled in Parliament in 2019, then studied by a committee for two years, and ultimately withdrawn by the government in 2022.

Now, its replacement, the Digital Personal Data Protection (DPDP) Bill, is set to be tabled in the Parliament's Monsoon Session, which began today.

• Prime Minister Narendra Modi has stated that the bill is set to “increase India’s reputation globally”

But what exactly does the bill say? Find out here

The bill introduces the concept of "deemed consent," in which consent for the processing of user data is assumed rather than explicitly sought.

• In the context of cross-border data transfers, the draft bill states that data of citizens can only be transferred to "whitelisted" countries

• Big Tech companies have sought to revise the definition of children, from those below 18 to those below 13

Once the bill is tabled, it can either be voted on by the two houses of Parliament and become India's data protection law, or it can be referred to a Parliamentary Committee to be studied further.

The ongoing conflagration in Manipur reached a tipping point yesterday when a horrific video of two Kuki women being sexually assaulted went viral.

• Today, these videos were withheld on Twitter in response to legal demands from the country

In a move that could shake up the AI landscape, Meta has open-sourced its Llama 2 large language model. However, there's a catch: companies with 700 million or more monthly active users are required to obtain a license from Meta before they can use it.

• This means that Meta's new AI technology is off-limits to some of its social media competitors

But why open-source Llama 2 at all? Find out more

On July 20, 1969, the lunar landing module named "Eagle" safely touched down on the Moon, carrying American astronauts Neil Armstrong and Edwin Aldrin. After several hours, Neil Armstrong achieved a historic milestone as he became the first human to step foot on the lunar surface. (Picture credit: NASA)

Watch the historic moment

• Google is reportedly testing a new AI tool called Genesis, designed to assist journalists in writing news articles. 
  
  
• Apple is developing AI offerings like OpenAI's ChatGPT and Google's Bard, using its framework called 'Ajax' for large language models. 

The Surat Diamond Bourse (SDB) is a shining example of India's growing economic prowess. 

This colossal 15-storey, nine-building complex is now the largest office building in the world, surpassing the Pentagon in terms of floor space.

• The SDB is a major boon to the city's flourishing diamond industry, which accounts for 90% of the world's diamond cutting and polishing

In addition to its sheer size, the SDB is also a marvel of green technology. The building consumes 50% less energy than the maximum limit required to earn a "platinum" rating from the Indian Green Building Council.

• Moreover, natural ventilation and solar energy power around half of the building, significantly reducing its carbon footprint

Find out more

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