Infosys, the Indian IT giant founded by Narayana Murthy, has secured a substantial five-year deal worth Rs 8350 crore from Ikea, the Swedish multinational conglomerate. This agreement involves providing enterprise service management, IT services management, and a service desk for Ikea’s global workforce. The deal also includes the transfer of 350 Ikea employees to Infosys.
K Dinesh, a co-founder of Infosys, took an unconventional path, leaving a government job to build a tech empire. He played a pivotal role in the company’s success, serving on the board for 30 years before transitioning into philanthropy. This article highlights Dinesh’s journey from a government employee to a tech visionary and his dedication to social causes.
Infosys’ Chief Technology Officer, Rafee Tarafdar, has emphasized the importance of artificial intelligence (AI) for engineering students entering the workforce. Tarafdar advises students to focus on becoming proficient in AI tools to enhance their productivity and value. The company has also introduced a sales assistant for client-facing teams, providing them with access to extensive information and enabling them to develop AI-led solutions.
British Prime Minister Rishi Sunak and his wife Akshata Murty have climbed up the ranks in the 2024 ‘Sunday Times Rich List’ due to Murty’s profitable Infosys shareholding. The couple’s estimated wealth has increased to GBP 651 million, making them the richest inhabitants of 10 Downing Street. Murty’s earnings, primarily from Infosys dividends, surpass those of her husband. The annual list also recognizes other wealthy individuals of Indian origin, with the Hinduja family retaining the top spot.
Wipro’s recent announcement of 11 large deals worth over USD1 billion in Q3FY23 is a positive indication for the Indian IT industry. This follows similar reports of record-breaking deal wins by TCS and Infosys, suggesting strong demand for IT services. Investors should be optimistic about the future prospects of these companies.
Despite a challenging year for the Indian IT sector, auto companies are emerging as a strong growth driver for FY24. Automotive firms are increasingly outsourcing software development and engineering services to IT companies to support their transformation to electric and autonomous vehicles. This trend has contributed to a significant increase in revenue from automotive clients for IT services companies, particularly in manufacturing and engineering, research and development (ER&D) segments.
In a recent report, CFRA has upgraded Infosys’ stock from Hold to Buy, citing increased confidence in the company’s future performance. The valuation target has been raised to 25 times FY 25 EPS, exceeding the 5-year mean P/E ratio. Despite trimming FY 25 EPS, CFRA has initiated FY 26 EPS at US$0.88. Infosys’ FY 24 results met expectations, with EPS growth of 6% and revenue growth of 2%. The achievement of US$17.7 billion in large deal wins in FY 24 is also noteworthy, as is the company’s adoption of generative AI, which has the potential to enhance revenue and improve margins. Analysts remain bullish on Infosys, estimating an average upside of INR 1,595. Investors can utilize InvestingPro’s fair value feature and financial health score to assess the stock’s potential.
In the face of slowing revenue growth, top IT exporters Infosys, TCS, and Wipro are focusing on optimizing processes to improve efficiency and cut costs. This strategy has become crucial for these companies to maintain profitability amidst the current economic climate.
Infosys co-founder Nandan Nilekani’s recent meeting with San Francisco-based entrepreneur Sriram Krishnan sparked a social media buzz. After the meeting, Krishnan expressed his ‘multi-decade dream come true’ with a picture alongside Nilekani. The picture, described by Nilekani as an ‘Indian remake of Twins,’ shows the duo engaging in discussions about open source AI and its significance.
