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BENGALURU, India, Oct. 22, 2024 /PRNewswire/ -- Zoomcar Holdings, Inc. ("Zoomcar" or the "Company") (NASDAQ: ZCAR), the Nasdaq-listed leading marketplace for self-drive car sharing, welcomes back Waze Co-Founder Uri Levine as the Strategic and Financial Advisor. Mr. Levine served as Zoomcar's Chairman of the Board from 2021 to 2023, prior to its public listing, and will now provide strategic oversight to the Zoomcar team with a strong focus on problem solving, operational excellence, and capital growth. As ...

Core Insights - Infosys reported second-quarter fiscal 2025 earnings of 19 cents per share, matching the Zacks Consensus Estimate, with a year-over-year improvement of 5.6% from 18 cents [1] - Revenues for the second quarter increased by 3.7% to $4.894 billion, slightly surpassing the Zacks Consensus Estimate of $4.89 billion, driven by large deals and stable demand across various segments [1] Revenue Performance - North America revenues declined by 2.6% year-over-year, while revenues from India, Europe, and the Rest of the World increased by 14.7%, 16.7%, and 4.8%, respectively [2] - On a constant currency basis, North America saw a decline of 2.7%, while India, Europe, and the Rest of the World experienced growth of 16%, 15.5%, and 3.8% [2] - Segment-wise revenue growth included Manufacturing at 13.5% ($768 million), Financial Services at 2.8% ($1.33 billion), and Energy, Utilities, Resources & Services at 10.7% ($660 million) [2] Client Acquisition and Contracts - Infosys added 86 clients in the fiscal second quarter and signed multiple large deals totaling $2.4 billion [3] - The number of clients generating over $100 million in revenue increased to 41, up from 39 in the previous year [3] Financial Metrics - Gross profits rose by 3.2% year-over-year to $1.49 billion, with a gross margin contraction of 20 basis points to 30.5% [4] - Operating income increased by 3.3% year-over-year to $1.03 billion, while the operating margin contracted by 10 basis points to 21.1% [4] - Consolidated cash and investments at the end of the quarter were $4.63 billion, up from $4.31 billion in the previous quarter, with free cash flow generated at $839 million [4] Outlook - Following strong fiscal second-quarter performance, Infosys raised its revenue guidance for fiscal 2025 to a growth range of 3.75-4.50% on a constant currency basis, up from the previous guidance of 3-4% [5] - The company expects fiscal 2025 operating margin to be in the range of 20-22% [5]

Financial Performance and Key Metrics - Revenue grew 3.1% quarter-on-quarter and 3.3% year-on-year in constant currency terms [4] - Operating margin for Q2 was stable at 21.1%, with free cash flow for the quarter at $839 million [4] - Employee attrition remained stable at 12.9%, and the company plans to launch employee compensation increases in two phases effective January 1, 2025, and April 1, 2025 [4] - Revenue for Q2 was $4.9 billion, up 3.1% sequentially and 3.3% year-on-year in constant currency terms, including an 8.8% benefit from acquisitions [9] - Utilization improved to 85.9%, up 60 basis points sequentially, and headcount increased by approximately 2,500 employees, marking the first sequential growth after six quarters of declines [10] - Free cash flow conversion was approximately 108% for Q1, and H1 free cash flow was 41% higher than H1 last year [10] Business Line Performance - Financial services grew at 2% quarter-on-quarter, while manufacturing saw double-digit growth, and energy, utilities, and services grew at 5.8% [4] - The financial services segment in the U.S. saw increased discretionary spend in capital markets, mortgages, cards, and payments, while the automotive sector in Europe experienced slowness [5] - Retail sector continues to be impacted by economic and political uncertainties, with cost takeout efficiency and consolidation being key priorities for clients [12] - Manufacturing sector saw strong growth, partially contributed by acquisitions, with opportunities around supply chain optimization, cloud ERP, smart factory, and connected devices [14] Market Performance - Growth was observed in all geographies on a quarter-on-quarter basis, with Europe now accounting for approximately 30% of revenue [7] - Large deals totaled $2.4 billion, with 41% being net new, and the pipeline for deals below $50 million saw a double-digit quarter-on-quarter increase [4][11] - The company signed 21 large deals with a total contract value (TCV) of $2.4 billion, with 41% being net new, and actual large deal wins stood at 55 deals with a TCV of $6.5 billion, 51% of which was net new [11] Strategic Direction and Industry Competition - The company is deepening its work in generative AI, deploying enterprise generative AI platforms and building a small language model leveraging industry and Infosys' data sets [5] - The generative AI approach is helping clients drive growth and productivity, with partnerships to build a strong data foundation critical for generative AI programs [6] - The company revised its revenue growth guidance for the financial year to 3.75% to 4.5% in constant currency terms, while maintaining operating margin guidance at 20% to 22% [6] Management Commentary on Operating Environment and Future Outlook - The company sees sustained strength and differentiation in the industry, with a focus on generative AI and digital transformation [5] - Management noted that discretionary spend trends remain stable, with clients prioritizing cost efficiency over discretionary initiatives [5] - The company remains optimistic about the future, with strong performance in Q2 and a revised revenue growth guidance reflecting confidence in continued momentum [6] Other Important Information - The board announced an interim dividend of Rs 21 per share, an increase of 16.7% compared to last year [10] - The company closed 21 large deals with a TCV of $2.4 billion, with 41% being net new, and actual large deal wins stood at 55 deals with a TCV of $6.5 billion, 51% of which was net new [11] Q&A Session Summary Question: Reasons for changing revenue guidance - The increase in guidance was due to strong Q2 performance, broad-based growth, and a double-digit increase in smaller deals below $50 million [17] Question: Impact of generative AI on large transformation projects - Generative AI is currently more focused on productivity rather than driving large transformation projects, though it is a component of large deals [18] Question: Margin tailwinds in the second half - Tailwinds include benefits from Project Maximus, such as pricing improvements and optimization, which will help offset the impact of wage hikes [20] Question: Discretionary spend outlook - Discretionary spend is expected to remain muted, with seasonality factors such as furloughs and fewer working days baked into the guidance [22] Question: Pricing conversations and deal terms - Pricing environment remains stable, with progress in value-based selling under Project Maximus contributing to margin improvements [25] Question: Large deal TCV momentum - The large deal pipeline remains strong, with a focus on cost efficiency, automation, and consolidation, though smaller deals are also showing increased activity [26] Question: BFSI vertical outlook - Discretionary spend in financial services remains strong, particularly in capital markets, mortgages, and cards and payments, though large transformation programs are still limited [28] Question: Traction on generative AI work - Generative AI projects are progressing, with a focus on productivity and cost takeout, though the company has not shared specific customer adoption metrics [35][37] Question: Small language model positioning - The small language model is being developed for industry-specific use cases and will serve as a foundation for building generative AI applications [38] Question: Growth moderation in H2 - H2 growth is expected to slow due to seasonality, including furloughs and fewer working days, though the company remains confident in its guidance [42] Question: Utilization levels and hiring trends - Utilization levels are at a comfortable range, and future volume growth will come from net hiring rather than further utilization improvements [44] Question: Smaller deals and discretionary spend - Smaller deals below $50 million have seen a double-digit increase, reflecting a potential shift in market activity, though it is too early to determine if this trend is durable [61] Question: Mega deal pipeline - The company does not share specific data on mega deals but notes that the overall large deal pipeline remains strong [79] Question: TCV to revenue conversion - There has been no significant change in TCV to revenue conversion, with the company continuing to gain market share [80] Question: Value-based pricing examples - Value-based pricing under Project Maximus includes new age pricing and change request tracks, contributing to improved realization and pricing [81]

For the quarter ended September 2024, Infosys (INFY) reported revenue of $4.89 billion, up 3.7% over the same period last year. EPS came in at $0.19, compared to $0.18 in the year-ago quarter. The reported revenue represents a surprise of +0.18% over the Zacks Consensus Estimate of $4.89 billion. With the consensus EPS estimate being $0.19, the company has not delivered EPS surprise. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to W ...

FY25 revenue guidance revised to 3.75%-4.50%; Margin guidance retained at 20%-22% BENGALURU, India, Oct. 17, 2024 /PRNewswire/ -- Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY), a global leader in next-generation digital services and consulting, delivered broad based growth performance with $4,894 million in Q2 revenues, sequential growth of 3.1% and year on year growth of 3.3% in constant currency. Operating margin for Q2 was at 21.1%. Free cash flow for Q2 was at $839 million, growing 25.2% year on year. TC ...

Strategic Collaboration and AI Innovation - Infosys announces a strategic collaboration with zooplus to establish a state-of-the-art Global Capability Center (GCC) in Hyderabad, India, aimed at driving AI-led innovation and enhancing service capability and scalability [1] - The collaboration will leverage Infosys Topaz, an AI-first offering using generative AI technologies, to drive AI innovation, transform e-commerce capabilities, and enhance operational efficiency for zooplus [2] - Infosys was selected for its unique AI-first strategy and commitment to improving productivity while achieving cost efficiencies, which will play a pivotal role in transforming zooplus' customer experience and technology capabilities [3] Leadership Perspectives - Geoffroy Lefebvre, CEO of zooplus, emphasizes the strategic decision to collaborate with Infosys due to their AI-first strategies and expertise in delivering AI-powered solutions, aiming to unlock operational efficiencies and enhance customer experience [4] - Karmesh Vaswani, Executive Vice President at Infosys, highlights the company's commitment to driving digital transformation at scale for clients, leveraging Infosys Topaz to empower zooplus and position them at the forefront of digital commerce and marketing [4] Company Overviews - zooplus SE is the leading online pet platform in Europe, offering a broad product range, exclusive brands, and innovative services to cater to pet parents' needs across 30 European countries [5] - Infosys is a global leader in next-generation digital services and consulting, with over 300,000 employees enabling digital transformation for clients in more than 56 countries, powered by cloud and AI technologies [6]

Core Viewpoint - Infosys (INFY) has demonstrated strong stock performance, gaining 26.9% year-to-date, significantly outperforming the Zacks Computers - IT Services industry and the broader market indices [1][2]. Financial Performance - The company's stock performance reflects investor confidence in its financial health, innovative product launches, and a steady influx of customer contracts [2]. - In the first quarter of fiscal 2025, Infosys reported a revenue growth of 2.1% year-over-year, with a consensus estimate for fiscal 2025 revenues projected at $19.3 billion, indicating a year-over-year growth of 3.7% [8]. AI and Innovation - Infosys has been expanding its presence in the AI market through partnerships and acquisitions, including the acquisition of InSemi, which bolstered its R&D capabilities in AI, 5G, and high-performance computing [5]. - The company has collaborated with industry leaders such as NVIDIA, ServiceNow, and Intel to enhance its AI offerings and integrate advanced technologies into its solutions [6][7]. Client Engagement - Infosys has secured numerous clients this year, with many adopting its AI solutions, including notable companies like Sally Beauty Holdings, Posti, Metro Bank, LIC India, and First Abu Dhabi Bank [4]. Challenges - The company faces macroeconomic challenges, including inflationary pressures and high interest rates, which have led to expense reductions among enterprise customers and slower decision-making processes [9]. - Infosys is also susceptible to currency volatility between the Indian Rupee and the U.S. dollar, as a significant portion of its revenue is generated from the U.S. market [10]. Investment Outlook - Despite the challenges, Infosys's consistent contract flow and expanding AI capabilities suggest solid top-line growth potential. However, the stock's valuation is considered stretched, prompting a cautious investment stance [11].

Core Insights - Infosys is expanding its collaboration with Microsoft to accelerate global adoption of generative AI and Microsoft Azure, aiming to enhance customer experiences and drive transformative outcomes for joint customers [1][2][3] Collaboration Details - The collaboration began with Infosys as an early adopter of GitHub Copilot, leading to significant efficiencies in code modernization, with over 18,000 developers generating more than 7 million lines of code [2] - Infosys has been selected as a strategic supplier for Cloud and AI workloads, integrating Microsoft's generative AI offerings into its Solution IP portfolio to enhance cost-efficiency, scalability, and agility for clients [3] Sector-Specific Solutions - Financial Services: Combining Infosys' Finacle expertise with Microsoft's capabilities to improve efficiency in financial institutions [4] - Healthcare: Infosys Helix, built on Microsoft Azure, utilizes AI/ML to optimize patient outcomes and reduce costs [4] - Supply Chain: Enhanced agility and optimized processes through TradeEdge and Azure OpenAI service [4] - Telecommunications: Improved connectivity and customer experiences via Microsoft's generative AI and Infosys Live Operations platforms [4] - Customer Service: Infosys Cortex integrates Microsoft GenAI and Copilot for personalized customer engagement [4] Market Availability - Many solutions will be accessible on Azure Marketplace, allowing customers to leverage their Microsoft Azure Consumption Commitment (MACC) [5] Responsible AI Initiatives - Both companies are focusing on sharing best practices for Responsible AI, with Infosys contributing to ethical AI guidelines through its Responsible AI Office [6] Leadership Statements - Anand Swaminathan from Infosys emphasized the collaboration's focus on delivering value through a customer-centric approach across key sectors [7] - Nicole Dezen from Microsoft highlighted the transformative potential of the expanded collaboration in enhancing business operations and driving innovation [8]

Core Insights - Infosys and Old National Bank have expanded their four-year collaboration to enhance operations transformation and process digitization through automation and Generative AI [1][3] - Since 2020, Infosys has utilized a self-funding model to modernize Old National's digital landscape, resulting in improved stability, resiliency, and client experience [2] - Old National Bank, with approximately $53 billion in assets and $30 billion in assets under management, ranks among the top 30 banking companies in the U.S. [4] Company Overview - Infosys is a global leader in digital services and consulting, employing over 300,000 people and operating in more than 56 countries [5] - Old National Bank is the sixth largest commercial bank in the Midwest, focusing on long-term partnerships and community support [4] - Infosys emphasizes an AI-first approach and continuous improvement through digital skills transfer and innovation [5]