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Last Updated : Apr 15, 2018 06:43 PM IST | Source: Moneycontrol.com

IT wrap: Infosys kicks off earnings for IT, all eyes on TCS Q4 results now

The coming week is likey to see more action, with mid sized IT firm Mindtree reporting results on Wednesday and Tata Consultancy Services reporting on Thursday.

Neha Alawadhi @alnehaa

The last week was all about the technology services sector in the country, and the coming week promises to continue the action.

On Friday, the country’s second largest software exporter Infosys reported fourth quarter and annual results, and continued its reign of being at the centre of controversies.

While it posted results in line with analyst estimates, the company made a slew of other announcements that will see chatter during the coming weeks.

The new CEO Salil Parekh spoke about his four-pillared strategy for the company, Infosys acquired a new consumer insights and digital agency called WongDoody.

The company said it would hive off three acquisitions made by Vishal Sikka, the previous CEO, including Panaya, an Israeli software firm that was at the heart of a public spat between him and the founders of Infosys last year.

On Saturday, a whistleblower wrote to the Indian and US market regulators asking them to fix the responsibility of the Infosys board in the Panaya acquisition, in which the same whistleblower (according to the letter, a copy of which was seen by Moneycontrol) had alleged impropriety by the Board.

HCL Technologies, the fourth largest IT services provider made it second acquisition in as many weeks. On Thursday, the company said it was acquiring Actian Corporation, a Palo Alto based hybrid data management and analytics provider in a joint venture with Sumeru Partners in an all cash deal for USD 330 million.

The coming week is likey to see more action, with mid sized IT firm Mindtree reporting results on Wednesday and Tata Consultancy Services reporting on Thursday.

Analysts have said they expect mid sized firms to continue to post better growth than their larger peers, who have been growing at around 2 percent.

The commentary on the banking industry, which has been weak for IT firms since the past year, was tepid from Infosys, but COO UB Pravin Rao said there was no larger macro trend affecting the sector and things might pick up later in the year.

TCS’s commentary on the sector will also be keenly watched. Digital spends, which have been rising for companies for a while now, are also a trend to watch out for.

The US immigration services agency also announced that it had received 190,098 petitions this year for the H-1B visa this year, lesser than the 199,000 it received in the last filing season.

The visas are the most popular means for IT professionals to go to the US and the industry has been accused of misusing these work permits, a claim which it has consistently denied.

As a result of the US tightening controls around the visa application and allotment process in the past year, the total number of petitions filed has fallen.
First Published on Apr 15, 2018 05:37 pm
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