Tech Mahindra net profit falls by 62% in second quarter
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Tech Mahindra's net profit declines 62%
IT services company Tech Mahindra reported a 61.6% decline in net profit for the second quarter of FY23 as it continues to witness challenging economic conditions in the telecom market.
The net profit for the second quarter stood at Rs 494 crore. The revenue during this period also fell by 2% year-on-year (YoY) basis to touch Rs 12,864 crore. In US dollar terms, the net profit was down 62.5% YoY while revenue declined 5.1%.
On the performance of the company, outgoing CEO C P Gurnani said, “The year is being characterised by a challenging demand environment and prolonged macro uncertainties calling for a very tactical approach. We have doubled down our strategy of working closely with clients, helping them to streamline and modernise operations as they reprioritise their resources.”
Tech Mahindra's operating profit margin during the second quarter stood at 4.7%, which was lower than the 6.8% it had registered in the first quarter.
“We have taken actions to reduce the exposure to non-core areas of business. These actions will, over time, help us improve our financial performance and enable long-term sustainable growth,” said Tech Mahindra CFO Rohit Anand.
Companies in North America ramping up GenAI investments: Infy report
Companies are quickly ramping up investments in generative AI (GenAI) and realising rapid returns, according to new research from the Infosys Knowledge Institute (IKI), the research arm of Infosys.
The research forecasts that companies will increase GenAI investments by 67% in the next year. This translates to a conservative estimate of $6 billion to be invested by US and Canadian companies in the next year.
According to the report, large enterprises adopt GenAI and generate revenue faster; 73% of firms with over $10 billion in revenue have implemented GenAI solutions compared to less than 38% of smaller companies. C-suite buy-in is not an obstacle; more than 95% of senior executives support GenAI investment. Companies also expect GenAI to deliver operational performance not only content creation, the report noted.
Financial services, healthcare, and life sciences are leading the adoption of this new technology, bucking the stereotype of slow-moving regulated industries.
KPMG in India forms partnership with Vianai Systems
KPMG in India, a leading professional services firms, and AI company Vianai Systems have entered into a partnership. Under this agreement, KPMG in India and Vianai Systems will leverage Vianai's hila enterprise fine-tuning and optimisation capabilities, with enterprise systems of record.
Targeted specifically at finance professionals, their conversational finance offering will allow finance users to ask any question against their systems of record, internal documents, public data, and other data in natural language, with a view to get immediate responses by way of text, dashboards, charts and more.
The alliance would see both KPMG in India and Vianai Systems leveraging their respective expertise and resources together to provide this innovative conversational finance offering to enterprises looking to transform their finance function.
Edited by Kanishk Singh
