It was inevitable, one could say. Infosys Technologies’ acquisition of IT consulting firm Lodestone Management Consultants finally answers a question journalists and analysts have never tired of asking the company. The company has a mountain of cash that keeps growing over the years; at last count it had reached $3.2 billion or Rs 17,760 crore as of June 30, 2012. But it has never made a large acquisition, leading to questions on whether it is being too conservative. Those questions have some answers now. Continue Reading →
Infosys
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TCS results to brighten IT sector outlook
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Indian software giant Tata Consultancy Services (TCS) has logged impressive sales as well as profit growth, on the back of rising volume of work and aggressive cost management.
The company’s consolidated sales in the quarter ended 31 December 2010 rose by 4% over the previous quarter to Rs 9663 crore. This growth was higher than that of Infosys, whose sales grew by just 2.3% sequentially, and which had got affected by foreign exchange volatility.
Filed under: Companies, Information Technology, Top News, December 2010 results, Infosys, TCS
Infosys meets $ guidance, but markets want more
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Infosys Technologies reported its December quarter results today. Its share price was down by about 4% at the time of posting, as its results lagged market expectations.
Filed under: Companies, Information Technology, Top News, December 2010 results, Infosys, Results
Infosys acquires McCamish; gives a boost to BPO biz
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Infosys Technologies is acquiring an America business process outsourcing (BPO) company, McCamish Systems LLC. Infosys will pay $38mn with an additional earn-out of $20mn to acquire the company, which had a turnover of $38.2mn in calendar 2008. The additional consideration will be paid depending on the company achieving certain financial targets. Continue Reading →
Filed under: Companies, Top News, BPO, Infosys, M&A
Infosys, Wipro and TCS bag lucrative BP outsourcing deal
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Oil major BP handed out a major IT outsourcing contract to five global IT companies. The deal has been awaited for long and comes at a time when deal flow has slowed down for the software sector. While the deal value was not disclosed by the companies who got the award, this story by Mint has quoted a BP spokesperson attributing the deal value at $1.5bn. BP will save about $500mn by reducing its number of vendors to 5, says the report.
Filed under: Companies, Information Technology, Top News, Infosys, outsourcing, TCS, Wipro
Infosys June 2009 results a worry, currency fluctuations cushion earnings
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Infosys Technologies kicked off the earnings season on a positive note. Its results reflect a tough operating environment but exceeded its guidance and market expectations. The software major’s revenues declined by 2.9% over the preceding quarter to Rs 5,472 crore in the June 2009 quarter. Its net profit would have declined too but a 130% increase in other income kept net profit constant at Rs 1,915 crore. In dollar terms, its revenues declined by 0.1% sequentially and by 1.9% in constant currency terms.
Filed under: Companies, Information Technology, Top News, Infosys, Results
Infosys Technologies Q4 revenues down 1.8%, profit up 2.6%
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The software bellwether Infosys Technologies’s business took a hit in FY’09. In the fourth quarter, its revenues fell by 1.8% to $1.1bn while its net profit grew by 2.6% to $321mn. These are figures compiled under IFRS accounting norms. But the company’s figures are much better under Indian accounting norms, due to the rupee’s sharp depreciation against the dollar.
Filed under: Companies, Information Technology, Top News, Guidance, Infosys, Results
Axon goes to HCL: the mystery gameplan?
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Today, Axon Global’s shares will stop trading on the London Stock Exchange, marking a smooth ending to a takeover, which at one time saw HCL Technologies and Infosys Technologies pitted against each other. Though the logic of the deal and its benefits for HCL has been dealt with earlier, the ease with which HCL outbid Infosys is puzzling.
Filed under: Companies, News Analysis, Axon, HCL, Infosys, M&A
HCL bids for Axon Global, teases Infosys
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HCL Technologies, as was rumoured, made its move to acquire Axon Global, spoiling Infosys’ party mood. The Delhi-based IT company has launched a counter-bid for Axon Global, which will make Axon shareholders happy, but also ups the acquisition cost for Infosys. HCL’s initial bid of 650 pence a share, through its UK-subsidiary HCL EAS, is just an invitation to start a bidding war. With just an 8.3% premium to Infy’s offer price, Infosys will most certainly make a counter-bid.
Filed under: Companies, News Analysis, Axon, HCL, Infosys, M&A
Infosys’ Axon acquisition: boosting its consulting business or simply buying growth?
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Finally, Infosys Technologies did it. For years, one has got tired of hearing that the company was waiting for the right acquisition at the right price. This despite having oodles of cash on its balance sheet that lowered its return on capital. It did make some small acquisitions but nothing which made analysts furiously rework their estimates.
This will be a large acquisition by its standard, it will pay about Rs 3,300 crore to acquire UK’s Axon Group, a business transformation service provider.
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