The Hindu Editorial Analysis
The Importance of Reading The Hindu Editorial: Reading The Hindu newspaper has several benefits, including improving reading skills, facilitating comprehension, staying informed of current events, enhancing essay writing, and more. For individuals aiming for a career in banking, reading editorials is crucial for vocabulary building. In this article, we will examine today’s editorials, provide practice questions, and highlight important vocabulary words.
Infosys growth slows.
- Infosys’s modest arance in the March quarter, and an even more unimpressive forecast for the 2023- 24 fiscal, pushed the share price down by nearly 10% in early trades on the NYSE.
- Weak macroeconomic cues, and client ramp-downs in banking & financial services, retail and telecom, outweighed tailwinds from the digital momentum.
- Infosys has forecast a single digit revenue growth of 4-7% in constant currency for FY24. This is less than half of the 15.4% growth it clocked in constant currency in FY23.
- Even the performance for the whole of last year was lower than its own guidance of 16- 16.5% for the year, showing a dramatic adverse turn in the last quarter of the year.
- Infosys CEO & MD Salil Parekh said on Thursday that in Q4, the company saw unplanned project ramp-downs in some of its clients and delayed decision-making, which resulted in lower volumes.
- “In addition, we had a one time revenue impact. While we saw some signs of stabilization in March, the environment remains unstable,” he said. The revenue in the quarter dropped by 3.2% in constant currency compared to the preceding one, and rose by 8.8% compared to the year ago quarter. Both numbers were significantly lower than that for TCS, which announced its numbers on Wednesday.
- For the 2024 fiscal, Infosys has guided for an operating margin of between 20% and 22%. Parekh said financial services, mortgages, asset management and investment banking saw unplanned ramp-downs.
- Operating margin in the March quarter stood at 21%, down 50 basis points (100 bps- 1 percentage point) compared to preceding and the year ago quarter. Parekh said the company saw some headwinds because of higher compensa tion and some travel coming back. “But with higher utilization and more automation we also have a runway to increase margins and it gives us flexibility next year,” he said.
- In the March quarter, Infosys signed large deals worth $2.1 billion and Parekh said there are opportunities in cost-optimisation programmes and in deal consolidation. Digital re- venue now comprises 62.2% of total revenue.
- Employee utilization dropped to 80% in the 2022-23 financial year, from 87% in the previous year. Infosys has refrained from calling out the number of freshers it will hire in the 2023-24 financial year.
- Parekh said they would honor all the campus offers made so far, but did not share details on onboarding dates. He also didn’t share details on the pay hikes, promotions and variable payouts.
- Why has Infosys growth slowed down?
- By how many percent of employees dropped and what was the main reason behind it?
- Refrained-to stop yourself doing something
- Asset- person or thing that is useful to somebody/something
- Mortgages- money that you borrow in order to buy a house
- Arence- friendly, congenial personality
- Adverse- making something difficult for somebody
- Fiscal- connected with government or public money,
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