Tata Consultancy Services; Weak Operating Performance; Deal; Intake Remains Healthy

HOLD

CMP: Rs3242 

Target Price: Rs3300

TCS delivered a weak operating performance in Q4, due to softness in discretionary spending and deferment of non-critical new projects. Revenue grew 1.7% QoQ to USD7.19bn (0.6% CC QoQ), amid a challenging operating environment as clients turned cautious, pausing discretionary projects and deferring non-critical ones. North America played-out weaker than expected in Q4 and, against the anticipation of a recovery, actually weakened further (-0.7% QoQ CC). Growth momentum sustained in the UK in Q4, while growth further moderated in Continental Europe. Weak revenue growth led to a miss in Company’s exit EBITM guidance of 25%. Overall deal intake in Q4 was broad-based and healthy, at TCV of USD10bn (book-to-bill at ~1.4x). Improvement in sentiment across Europe led to better velocity of deal closures in Q4. Management remains watchful in the near term, considering the heightened macro uncertainties; however, it reiterated confidence on accelerating revenue growth, once uncertainties abate. We tweak our earnings estimates for FY24-25 (a 0-1.5% cut) post the FY23 performance. We retain HOLD with TP of Rs3,300/share at 22x Mar-25E EPS.

Results summary: Revenue grew 1.7% QoQ to USD7.19bn (0.6%/10.7% QoQ/YoY CC), below our estimate of USD7.24bn. EBITM was flat QoQ at 24.5%, missing Mgmt guidance of exiting the year at 25%, due to weaker-than-expected revenue growth. For the full year, EBITM declined by ~120bps due to annual wage hikes (-160bps), impact of supply-side pressures (-140bps), and higher travel costs (-30bps) that were partly offset by realization improvement (+50bps), pyramid optimization (+50ps), and currency movement (+110bps). Net Profit stood at Rs113.9bn, lower than our estimate of Rs116.4bn on account of miss on the operating performance front. Revenue growth in Q4 on CC YoY basis was led by Retail & CPG (13.0%), Life Sciences & Healthcare (12.3%), Technology & Services (9.2%), Manufacturing (9.1%), BFSI (9.1%), and Communication & Media (5.3%). What we liked: Healthy deal intake (TCV of USD10bn; book-to-bill of ~1.4x), moderation in attrition (20.1% vs 21.3% QoQ). What we did not like: Miss on operating performance.

Earnings call KTAs: 1) Cloud, Cyber Security, Enterprise Application Services, and Cognitive Business Operations led the growth in Q4. 2) Management highlighted that clients are recalibrating spends, prioritizing cost optimization projects, investing in automation initiatives, and consolidating vendors amid a challenging environment. 3) Deal TCV for BFSI stood at USD3.1bn, Retail & CPG TCV stood at USD1.3bn, and North America TCV at USD5.0bn in Q4FY23. 4) TCS onboarded over 44K freshers in FY23. It has made offers to 46K freshers so far for FY24. 5) TCS has ~116K hyperscaler cloud certifications, which place it among the top-2 partners. 6) IT Services attrition on an LTM basis continued to trend down and was at 20.1% in Q4. Management indicated that quarterly annualized attrition moderated by ~4% QoQ and by ~10% from the peak. 7) Management highlighted that a cautious sentiment by clients weighed on demand, particularly in the US. The travel vertical continues to perform well. BFSI, Manufacturing (particularly for process and industrial), Discretionary retail and fashion retail in the US remain weak. Weakness in Communication & Media was largely attributed to softness in the Information and Media segments. 8) K. Krithivasan will take over as the CEO & MD of the company w.e.f June 1, 2023, for a period of 5 years.

Worldline Partners With SignCatch To Coll Out Merchant Digitisation Programme To Empower MSMEs In India

Worldline, a global leader in payment services, today announced the partnership with  India based SignCatch, a pioneer in Retail Tech, providing one-stop cloud-based Retail Solutions for MSMEs[1] to roll out the Merchant Digitisation Programme (MDP) through Worldline’s Android POS terminals.

Under the partnership, SignCatch and Worldline will enroll a base of 100,000 merchants in India, leveraging SignCatch’s super-app Bech (??ch) platform across multiple business categories like modern retail stores, supermarkets, grocery shops, bakeries, cafes, and restaurants in the first three months of launch.

Fueled by Worldlines commitment for ‘Pioneering PayTech for a Buland Bharat’ and SignCatch’s vision of enabling cutting edge Retail Technology for Indian MSME’s, through the MDP initiative, Worldline and SignCatch will empower many small business owners to instantly digitise their brick and mortar store operations, activate digital payments and set up an online presence to help them to grow their business digitally.

Vishal Maru, Executive Vice President of Financial Institutions of Worldline in India, said, “In 2022, we announced our collaboration with SignCatch and now we are all set to launch the offering to empower the Micro and SME segments retailers. We are thrilled to offer this integrated technology solution through our Android POS terminals branded as ANTERA. We have a strong network of over a million merchants through all our managed banks across the country and we will be extending this offering to our partner Banks and their merchants. I believe that the offering will become more exciting by enabling the ONDC features in the near future.”

Sumit Duggal, Founder and CEO of SignCatch, said, “The Worldline and SignCatch partnership signals the dawn of a new phase in the digitalization of small and micro retailers across India. In the past, SignCatch has worked closely with large retail aggregators such as Walmart, Grofers, and Metro Cash & Carry to facilitate purchasing & supply chain automation across neighborhood retail stores. Now, working with a global payment solutions giant like Worldline will open up a plethora of unique business opportunities for MSMEs and brands to partake in this new digital evolution!”.

SignCatch's super-app platform Bech enables Small Business owners to automatically create product catalogs for billing, purchasing, and promoting their businesses with in-app marketing tools, thereby significantly improving their operational efficiency. Being an all-in-one multi-tool digital commerce platform, Bech also offers multiple value-added services like quick billing, delivery logistics, B2B purchasing along with a fully integrated payment stack from Worldline.

Spearheading the revolution that will shape the Indian and global SMB retail shortly, SignCatch is amongst one of the early companies to have commenced the integration of their multi-utility seller side platform Bech on ONDC. The platform is compatible across all MSME retail verticals and caters to various categories of sellers including – Hardware, Grocery, Mobile, Electronics, Garments, Agricultural Goods and Tools, and many more. Once ONDC is enabled, small brands, wholesalers, and retailers on the platform can receive orders from buyers across the network while accessing 3rd party services, such as – instant loans, supply chain credit, digital payments, integrated delivery solutions, and much more.

LG Electronic Smiles Back To The World With Its New Brand Identity

* With Reinvented Brand Strategy, Company Aims to Actively Communicate With Customers Beyond Generations and Locations

LG Electronics (LG) unveiled a new brand direction and visual identity, which will shed more light on the value of Life’s Good with a more dynamic and youthful look across all physical and digital customer touch points.

In the company’s new Brand Communication Guidelines shared with employees all around the world, LG outlined the new direction for the brand to be loved by customers across countries and generations, including Generation Z, and ultimately establish itself as an iconic brand. The Brand Communication Guidelines reiterate LG’s core values of ‘Uncompromising Customer Experience,’ ‘Human-centered Innovation’ and ‘Warmth to Power a Smile.’

The brand slogan, Life’s Good, encompasses the message of how the company enables its customers to enjoy a quality life and indulge in precious moments via LG products, services and communication. And, as the brand mission, the company has pursued Innovation for a Better Life, contributing to the shaping of a better life and future for the planet.

The newly established brand direction includes a revamp of LG’s visual identity, reinterpreting the existing warmth and sense of togetherness of the brand. The company aims to boost interaction with more customers through a new visual identity that adds vitality and interactive elements while putting a new spin on the existing brand image.

In the digital space, the company’s symbol will come to life, engaging customers with a new level of expressiveness. The brand symbol, composed of the letters ‘L’ and ‘G,’ can perform eight unique motions, including nodding, spinning and winking. With its new capabilities, the brand symbol can greet customers with a friendly smile or move along with background music on digital platforms in a variety of witty ways.

In addition to its signature LG Red color, the company will be using the more energetic LG Active Red across all customer contact points. Also, various gradient elements in LG Active Red, white and black were also introduced, offering variety as they can be applied according to the unique characteristic of each product or service.

The company also designed a new typeface for its Life’s Good brand slogan, which will be used more widely as a brand asset in product packaging. Cleverly integrated into the typeface are shapes inspired by various LG products.

LG’s new brand strategy not only strengthens the company’s unique identity, but signals its willingness and capacity to evolve with generations, along with its unmatched commitment to innovating customer experiences all around the globe. The company plans to utilize its one-of-a-kind brand asset at all customer contact points globally throughout the year.

“Having a strong, consistent brand strategy enables us to better communicate our value proposition and unique identity, which harmonically blends innovation and warmth,” said William Cho, CEO of LG Electronics. “Implementing the new brand strategy, LG aims to become an iconic brand that resonates with consumers transcending generations and locations.”

About LG Electronics, Inc.

LG Electronics is a global innovator in technology and consumer electronics with a presence in almost every country and an international workforce of more than 74,000. LG’s four companies – Home Appliance & Air Solution, Home Entertainment, Vehicle component Solutions and Business Solutions – combined for global revenue of over KRW 80 trillion in 2022. LG is a leading manufacturer of consumer and commercial products ranging from TVs, home appliances, air solutions, monitors, service robots, automotive components and its premium LG SIGNATURE and intelligent LG ThinQ brands are familiar names world over. Visit www.LGnewsroom.com for the latest news.

Nestlé MILKYBAR Presents A New Campaign ‘Imagine Karo, Kuch Naya Seekho’

The relationship between a mother and her child is always evolving. However, the role of the mother in her child’s life as someone who nudges them to learn and explore every day, remains constant.  The new MILKYBAR campaign brings alive this beautiful relationship and highlights how a slight nudge from the mother to imagine leads to fun learning for the child.

Commenting on the launch of the campaign, Rupali Rattan, Head – Confectionery Business, Nestlé India said, “We wanted to build on the world that MILKYBAR has created – one of imagination, learning and curiosity. We wanted to focus on this strong mother child bond and how she can subtly nudge the child to unlock learning by the power of their own imagination”

Commenting on the launch of the campaign, Joy Chauhan, Chief Client Officer – Wunderman Thompson South Asia & Managing Partner, Wunderman Thompson Delhi, said, “With the new MILKYBAR thematic, we aim to build brand relevance with mothers and children with the message ‘Imagine karo, kuch naya seekho’. It leverages the concept of learning new things while they engage in imaginative play everyday. The commercial is an entertaining reminder that Milkybar believes that a kid’s imagination must be nurtured and MILKYBAR is the best way to do it.”

The new campaign would be launched across television and digital platforms.

Link to the TVC : https://www.youtube.com/watch?v=hZ-dZJStr2U

Ambuja Ranked No.1 And ACC At No.2 In ‘India’s Most Trusted Cement Brands 2023’ By TRA Research

·         Ambuja Cement and ACC recognised as India’s Most Trusted Cement Brands for second year in a row.

·         Ambuja Cement and ACC rank amongst the top two cement brands and are also amongst the top 3 brands in the manufacturing category of the report.

·         Ambuja and ACC have seen a remarkable jump in their overall ranking from last year's report.

Ambuja Cement and ACC, the cement building and material companies of Adani Cement and part of Adani Group, have been recognised as India’s Most Trusted Cement Brands by TRA Research in its Brand Trust Report 2023, for second year in a row. Ambuja Cement and ACC rank amongst the top two cement brands and are also amongst the top 3 brands in the manufacturing category of the report.

TRA's Brand Trust Report offers a valuable snapshot of India's 1000 most trusted brands. One of the most significant findings from this year's report is the importance of transparency and social responsibility in building consumer trust. Ambuja Cement and ACC have secured impressive rankings of 91 and 115, respectively, in the overall report of ‘India’s Most Trusted Brands 2023’.  This is a significant improvement from their positions in the previous year's report wherein they ranked 246 and 341, respectively.

The Companies have become India’s leading cement brands by constantly seeking to offer more than what its customers need and has been providing hassle-free and innovative building solutions. Ambuja Cement and ACC have always placed the customer at the center by setting industry benchmarks in offering low carbon, sustainable solutions.

Mr. Ajay Kapur, CEO, Cement Business said, “We are thrilled to have been acknowledged as India's most trusted cement brands. This recognition reinforces our dedication to providing our customers with only the best products and services. It also motivates us to continue to innovate and improve our products to meet ever-evolving needs of the construction industry. We thank our customers for their unwavering trust and support, which has made this recognition possible. We are confident that with our commitment to quality and customer satisfaction, we will continue to lead the way in the cement industry.”

TRA’s Brand Trust Report 2023 is based on comprehensive primary research conducted on the Brand Trust Matrix which comprises proprietary brand behaviors. The report provides valuable consumer insights to leading Indian and global organizations, enabling them to enhance their brand's scope and relevance in these rapidly changing times.

Narayana Health’s Surgeons Reconstruct A 11-Yr-Old Boy Amputated Arm In A Complex Replantation Surgery

*  The amputated arm was separated from his body for more than six hours, the NH team conducted the surgery, involving microsurgical repair of all injured structures of the hand

*  Narayana Health’s doctors urged people to be aware of 6 hours Golden Period if such incidents unfortunately occur.

A farming accident that could have resulted in a lifetime of disability was turned around by a team of experienced surgeons and doctors at Narayana Health Orthopaedics, Spine and Trauma Care.  An 11-year-old boy, Charan, from Kuppam, Andhra Pradesh, accidentally amputated his upper forearm while trying to dislodge a wooden stick from a grass-cutting machine. However, thanks to the quick response from his parents and the team at Narayana Health City, Charan was able to reclaim his amputated arm.

After a life-threatening incident, Charan was taken to a local medical college, where he received primary treatment, and was then referred to Narayana Health City for further treatment. The team of doctors led by Dr Ravi D R, Dr Sudarshan Reddy,DrVikasEllur, Dr Prasad K N, Dr Mayur Shetty, and DrRakeshKoudki, and DrVijuWilben immediately conductedthe replantation surgery. Despite the fact that Charan's amputated arm had been separated from his body for more than six hours, the experienced team of doctors responded quickly and successfully conducted the complex six-hour surgery, involving microsurgical repair of all injured structures of the hand to re-establish blood flow to amputated part.

Dr Ravi D R, who led the surgical team, said, "Replantation of limbs has a higher rate of success when conducted within the golden period of 6 hours, however in Charan's case was particularly challenging due to the type of injury, a crush avulsion cut, and the young age of the boy along with the distance to travel, which makes the surgery even more difficult.We decided to take the challenge and perform the replantation surgery on him. Our team of Plastic surgeons and orthopaedics have successfully replanted amputated hands that have reached us with Master Charan after more than 6 hours from the time of injury."

After the complex surgery, Charan was under intensive observation and medication for ten days to prevent complications. Fortunately, he had no difficulties in post-operative period and was discharged in stable condition with a viable hand.He is expected to have a complete recovery over a 9-12 Month period.

Charan's parents were grateful for the successful surgery and thanked the team of doctors at Narayana Health for their efforts. The surgery has given Charan a new lease on life, and he can look forward to a future with a fully functioning hand. “At the time of referral to Narayana Health, we were told by well-wishers that our son’s life would not only be saved, but he can get back his hand as well. Their confidence gave us a lot of hope and we are very that Charan would lead a normal-active life without any disability,” said the jubilant parents of Charan. 

Citing Charan’s case, Narayana Health’s team urged people to be aware of Six-Hours Golden Period if such incidents unfortunately occur. Surgery within the golden hour period can make the task of surgeons a bit easier. However, Indian surgeons have time and again shown their extraordinary expertise which ismanifested in this case too.

Narayana Health Orthopaedics, Spine and Trauma Care at Narayana Health City, Bengaluru, is a leading center providing world-class care to patients from across India and beyond. The team of Plastic and Reconstructive surgeons at Narayana Health City cater to a wide spectrum of services including Trauma and Reconstruction, Oncoplastic Surgery, Microvascular Surgery, and Aesthetic surgery in a world-class facility at Bommasandra, Bengaluru. With a team of skilled and experienced doctors, state-of-the-art facilities, and a commitment to patient care, Narayana Health City is the go-to destination for Joint Replacement, Spine, Arthroscopy, Sports Medicine, and Trauma services. The Centre is a highly specialized medical facility staffed by expert doctors with quaternary care services all under one roof.

“Our team is committed to providing comprehensive reconstructive procedures that enable the return of form and function to any part of the body that has been affected by trauma, injury, or other medical conditions. We use the latest techniques and technologies to perform even the most challenging reconstructive procedures with precision and care,” concluded Dr Ravi.

About Narayana Health

With all the super-speciality tertiary care facilities that the medical world offers, Narayana Health is a one-stop healthcare destination for all. Founded by Dr. Devi Shetty and headquartered in Bengaluru, Narayana Health group is the second-largest healthcare provider in the country in terms of operational bed count. The first facility was established with approximately 225 operational beds in the year 2000 at NH Health City in Bengaluru. The Company today operates a chain of multispecialty tertiary and primary healthcare facilities across a network of 23 hospitals and 7 heart centres in India and a single hospital overseas in the Cayman Islands with nearly 5,900 operational beds across all its centres and the potential to reach a capacity of over 6,800 beds.

For details, visit www.narayanahealth.org

Bollywood Star Ayushmann Khurrana Unveils India's First Full-Size Fold Smartphone TECNO PHANTOM V Fold

·         Priced at 88888, Phantom V Fold 5G becomes Industry-First Full size fold with largest screen size of 7.85" 2K+ LTPO display

·         Initial Amazon buyers can purchase at INR 77,777 as part of Early bird offer available for limited stock. Sale starts from 12th April

·         Retail pre-booking to start from 22nd Apr with attractive launch offers. Free gift worth INR 5,000

TECNO the premium technology brand has launched its first-ever foldable smartphone, the PHANTOM V Fold 5G in a starry unveiling ceremony in presence of the revered Bollywood star and Brand Ambassador Ayushmann Khurrana at JW Marriott, Sahar. The actor has been associated with the brand for the past two years and has played a pivotal role in enhancing the brand imagery and recall among the Indian youth and further establish TECNO as a disruptive smartphone brand. The advent of the ‘Beyond the Extraordinary’ Phantom V Fold marks TECNO’s entry into the foldable device market, under its flagship PHANTOM product line.

TECNO PHANTOM V Fold 5G, priced at INR 88,888 comes with the Industry-first Full Sized Fold with largest 7.85" 2K+ LTPO display. The phone boasts a dual-screen display and a 5-lens Ultra HD camera system, promising an immersive visual experience and exceptional image quality. The PHANTOM V Fold 5G aims to enhance user experience in various smartphone aspects, it achieves this through its flagship dual LTPO screens, which offer a 10bit display for sharper and more detailed visuals and an adaptive 10-120Hz high refresh rate, enabling smooth motions and fluid transitions both when folded and unfolded.  The smartphone is available in two colors – Black and White. The back cover is 100% Renewable Fiber made of emerging environment-friendly organic material from plastic waste.

Furthermore, TECNO’s Foldable offering redefines the Fold segment by introducing the largest 5000 mAh battery coupled with a power-packed 45W charger. Also, the phone is supported by the specially designed HiOS based on Android 13 for providing an efficient UI that could also be adapted to work on large displays. The users can enjoy seamless multitasking and productivity with amazing features like Split screen, Parallel Window, Smart touch, Multiple windows etc.  Additionally, the Fold is packed with the most advanced MediaTek 9000+ 5G processor based on 4-nanometer fabrication.

Commenting on the launch of PHANTOM V Fold, Arijeet Talapatra, CEO TECNO Mobile India, said, “By addressing the new-age consumer needs and leveraging our vast ecosystem to offer best-in-class technology on our smartphones, we are shifting our gears to consolidate our product portfolio in the ultra-premium segment with the Phantom series, ranging from 25K up to 100K. The Phantom series is the culmination of all the technological innovations at TECNO, reflecting our continuous commitment to user insights, research and development. Be it through Phantom X2 pro, which stands out as the only smartphone in the industry with World’s First Retractable Portrait camera. And now with Phantom V Fold, we foray into the foldable phone category with the best-in-class screen size, battery, camera & flagship processor in the segment. As a company, we have always been working towards bringing advanced technology to our consumers at disruptive prices and with PHANTOM V our aim is to change the fold market segment in less than 100K. This phone is a great device for people yearning for multitasking, new form factor and lifestyle.”

Speaking about being a part of the unveiling ceremony of PHANTOM V Fold 5G, Brand ambassador Ayushmann Khurrana, said, “I am thrilled to be a part of TECNO’s momentous journey. The foldable segment is going through an exciting disruption and with PHANTOM V Fold, the brand is truly redefining the experience. I am also excited to see how this big fold smartphone will change the way we interact with our devices and have a transformative impact on the consumers.”

Key USPs of TECNO Phantom V Fold:

·         Two Flagship Screens With New Form Factor to Create New Possibilities

Unfolded, PHANTOM V Fold reveals an outstanding 7.85-inch display with an optimal 8:7 aspect ratio and 2K+ resolution on an ultra-flat screen with a virtually invisible crease, which also lets the user work on 2 different apps simultaneously. Empowering users to discover greater smartphone fluency, whether gaming, watching movies or at work, PHANTOM V Fold’s flagship dual LTPO screens have 1100nits of maximum brightness, HDR10+ support and TUV A rated 36months of display fluency. The phone’s 6.42-inch sub screen has a unique micro-curved design and a 21:9 aspect ratio for a classic single-screen flagship smartphone experience. The result of extensive research into usage scenarios and global smartphone use, the sub screen’s dimensions are optimal for single-handed operation, sitting naturally in the palm while allowing the users to comfortably take command using just a thumb. 

·         TECNO’s Technologies Inspire A Robust and Industry minimum Screen Crease

PHANTOM V Fold’s main inner screen is enhanced by the results of TECNO’s continuous pursuit of the next best technologies. The brand’s self-developed, aerospace-grade drop-shaped hinge creates an ultra-flat main inner screen surface that is virtually crease-free. The hinge’s innovative reverse snap structure significantly improves the phone’s structural stability, while its aerospace-grade material creates strength with a light weight. The device hinge has gone through a testing of 200,000 + fold /unfold crease measures just 0.11mm.

·         MediaTek Dimensity 9000+ SoC Delivers Multitasking  with Ultimate Performance

PHANTOM V Fold is the world’s first foldable smartphone to be powered by MediaTek’s flagship Dimensity 9000+ 5G processor for delivering an exceptional performance that allows ultra-efficient multi-tasking and seamless switching between screens. The AI processing unit of the phone is designed to achieve maximum effective performance in the latest AI-accelerated trends including AI-multimedia, gaming, camera, and social video experiences. PHANTOM V Fold has a mighty 21GB RAM (12GB LPDDR5x + 9GB) via Memory Fusion 2.1 Technology and up to 512GB internal storage.

·         Five Ultra HD Lenses for Unprecedented Image-Making

PHANTOM V Fold’s ultra-clear 5-lens photography system creates an unprecedented image-making experience with lenses to meet a wide range of uses. With three rear lenses and two front lenses, users can explore a new world of photography. Enabling spectacular night-time image making, PHANTOM V Fold’s 50MP Super Night main camera features a super light-sensitive custom 1/1.3-inch sensor and 7P composition. Making up the other rear lenses are a powerful 50MP telephoto lens with 2X 50mm Golden Portrait Focal Length, and a 13MP ultra wide-angle lens. PHANTOM V Fold also has a 32MP front camera embedded in the secondary screen and a 16MP front camera featured in the primary screen. Additionally, click selfies with 50MP ultra flagship rear camera, Real time preview while clicking image features of Phantom V Fold phone too.  

·         HiOS13 Fold Provides a Super-Optimized Software Experience

The large-screen foldable smartphone experience offering has often been hampered by having operating systems unsuitable for the devices. As a result, TECNO developed HiOS13 Fold – a highly optimized and customized operating system based on Google’s Android 13, specially designed for foldable device, and further optimised 2000+apps for big Fold display, and top 1000 apps 90% adapted for Split Screen Mode & Multi Windows Mode.

About TECNO

TECNO Mobile is a premium smartphone brand from TRANSSION Holdings. With “Stop at Nothing” as its brand essence, TECNO is committed to unlocking the best contemporary technologies for progressive individuals across global emerging markets, giving them elegantly designed products that inspires consumers to uncover a world of possibilities. TECNO understands the needs of consumers from different markets and provides them with localized innovations which is demonstrated through their mastery of serving consumers who are “young at heart” and never stops pursuing excellence. TECNO’s portfolio spans across smartphones, smart wearables and AIoT devices made for consumers in over 60 emerging markets across the world. For more information,  visit https://www.tecno-mobile.in/home/#/