Earnings Season Kicks Off, Tech Giants Under Scrutiny: All The Stories That Mattered Last Week

This week, the Indian corporate landscape was marked by significant developments, from legal challenges facing prominent business leaders to strategic corporate decisions aimed at future growth. The unfolding events offer a mix of optimism, caution, and intrigue, underscoring the dynamic nature of the business environment in the country. Let’s dive into the major stories from India’s finance world that made headlines.

Earnings Season Kicksoff

TCS, Infosys, and HCL Technologies kicked off the earnings season last week. While TCS and Infosys faced a dip in share prices post-earnings announcement, HCL Technologies bucked the trend, witnessing a rise in its stock value.

TCS reported a 9% YoY increase in consolidated net profit for the September quarter, reaching ₹11,342 crore, and an 8% YoY growth in consolidated revenue, totalling ₹59,692 crore. Despite these figures, the company's shares dipped, attributed to the revenue missing expectations and subdued quarter-on-quarter performance. Read the full article here.

On the other hand, Infosys announced a 3% YoY increase in consolidated net profit, reaching ₹6,212 crore, and exceeded street projections in revenue and EBIT. However, a revision in revenue growth expectations for FY24 dampened investor sentiment, leading to a slump in share prices. Read the full article here.

HCL Technologies showcased a 9.8% jump in consolidated net profit, reaching ₹3,832 crore, and an 8.04% growth in operational revenue. The company's CEO, C Vijaykumar, emphasized HCL's adaptability amidst broader IT sector challenges. Despite cutting its FY24 revenue guidance, the firm's shares were up, buoyed by strong deal momentum, including a significant contract with Siemens AG for a global IT overhaul. Read the full article here.

Allegations Against Hero MotoCorp’s CEO

Pawan Kant Munjal, the CEO of Hero MotoCorp, India's leading two-wheeler manufacturer, is facing a complaint of forgery filed by the Delhi Police. The complaint, which Hero clarified is related to an issue predating 2010, is not connected to current investigations or tax probes. The Enforcement Directorate (ED) had previously seized assets valued at $3 million from Munjal and others following a money-laundering inquiry. This action was initiated after allegations that Munjal used a third-party vendor of Hero to illicitly transfer approximately ₹54.36 crore in foreign currency and valuables for personal use. Hero MotoCorp's shares experienced a dip, trading 3.02% lower at ₹2,946.35 on the day the news broke. Read the full article here.

Adani Group Counters Unpublished Report

The Adani Group has preemptively countered an upcoming article by the Financial Times, accusing it of attempting to tarnish the company's reputation by raking up "old and baseless allegations." The group alleges that the report, in collaboration with the George Soros-funded Organized Crime and Corruption Reporting Project (OCCRP), is part of a broader campaign to destabilize the company financially. The Adani Group has condemned the allegations and accused foreign entities, short-sellers, and certain sections of the foreign media of launching coordinated attacks to damage the group's market value. Read the full article here.

UK PM Rishi Sunak’s Expected Visit to India

Rishi Sunak, the UK Prime Minister, is expected to visit India in the last week of October. The visit is anticipated to be an opportunity to finalize the India-UK free trade agreement (FTA) negotiations. Sunak's visit follows his recent trip to India during the G20 summit and emphasizes the strengthening ties between the two nations. The successful conclusion of the FTA negotiations will potentially pave the way for increased trade and economic cooperation between India and the UK. Read the full article here.

Google and Apple Under Investigation in India

Tech giants Google and Apple are under investigation by the Competition Commission of India (CCI) over allegations of unfair business practices. Google is being probed for allegedly misusing its dominance in the smart TV segment and news content space, while Apple is under scrutiny for alleged anti-competitive practices related to its App Store. Read the full article here.

Tata Motors Sells Stake in Tata Technologies

Tata Motors has announced its decision to sell a 9.9% stake in Tata Technologies to TPG Rise Climate SF Pte. Ltd and Ratan Tata Endowment Foundation. This sale, expected to be finalized by October 27, 2023, values Tata Technologies at ₹16,300 crore. The company is preparing for its initial public offering (IPO), marking the first from the Tata Group in nearly two decades. For FY23, Tata Technologies reported a 25% revenue increase and a 63% rise in profit after tax. Read the full article here.