Expleo’s New CEO: A Perfect Resume and Daunting Challenges

/ July 3, 2020

We just learned that Expleo has a new CEO, Rajesh Krishnamurthy. On paper, Mr. Krishnamurthy, has everything right for Expleo. He is a French citizen of Indian origin. He has held senior roles at Infosys, including one as head of the Energy, Utilities, and Telco division, a major responsibility as Infosys is organized by vertical. He also led Infosys Global Consulting.

The Head of Tech Mahindra IES Becomes COO at Cyient

/ March 7, 2020

Karthik Natarajan, the former head of Tech Mahindra’s Integrated Engineering Services (IES), has joined Cyient as COO. We think, the appointment of Mr. Natarajan is a welcome move for Cyient, which has faced growth challenges in the past quarters, resulting from its client concentration and its exposure to Boeing and Pratt & Whitney.

LTTS Unexpectedly Slows Down in Q3 FY20

/ January 24, 2020

LLTS’ revenue growth in Q3 FY20 decelerated from 11.9% at CC in Q2 to +7.5% in Q3. The company was hit by a deteriorating situation in its Telecom & High-Tech (-26%), which was impacted by the ramp-down of two clients in its Semiconductor sub-vertical that represents (we estimate) 40% of its Telecom & High-Tech sector. LTTS, also, had flat growth (+2%) in its Industrial Products, with large accounts reducing their spend.

Wipro Still Reinventing its Industrial and Engineering Business in Q3 FY20

/ January 19, 2020

Wipro announced a mild growth in the revenues of its Industrial and Engineering (I&E) business unit in Q3 FY20: I&E revenues were up by 3.1% only (to USD 151m). Revenues included a small contribution from the recent ITI acquisition and were impacted by the market conditions in the semiconductor industry and softness in 5G adoption.

KPIT Had A Solid Q2. Strategic Questions Remain

/ November 29, 2019

Automotive engineering pure-play KPIT continued on its growth momentum in Q2 FY20 (+15.2% yoy), enjoying a satisfactory EBITDA margin of 13.4%. KPIT’s financial performance was, however, a notch below that of Q1 both in terms of revenue growth (Q1: +19.3%) and margin (14.6%).

Thoughts About HCL Tech’s Performance in Q2 FY20

/ November 9, 2019

HCL Tech’s ERS accelerated its yoy growth in Q2 FY20 to +15.0% at CC, from +13.3%. Its EBIT margin also increased from 16.0% in Q1 to 21.4% in Q2. The financial improvement results from mostly a catch-up effect: ERS recognized revenues in Q2 that it could not in Q1.

Wipro Expecting An Acceleration in E&IS from Q3 Onward

/ October 19, 2019

During its Q2 FY20 earnings call, Wipro provided some light about the performance of its Industrial & Engineering Services (E&IS) unit.
It is not so long ago that Wipro was corporate India’s strongest name for ER&D services, mostly servicing clients in the network equipment provider industry and also semiconductor manufacturers.

KPIT: a high-growth automotive pure-play

/ September 1, 2019

KPIT published its Q1 FY20, its second quarterly earnings since it became an automotive ER&D pure-play, since the sale of its IT service business to Birlasoft, last year.

Cyient’s revenues decline in Q1 FY20

/ July 22, 2019

Cyient’s revenues in Q1 FY20 declined, slightly, by 2.6% yoy. The decline came as a surprise as the company had signaled it had bottomed out in Q4 FY19.

HCL Tech completes the acquisition of IBM software products

/ July 3, 2019

HCL Tech has closed the acquisition of several IBM products. The company has now ownership of AppScan, BigFix, Commerce, Connections, Digital Experience (Portal and Content Manager), Notes Domino, and Unica. We assume the price of the transaction has not changed and still is USD 1.8bn.

HCL ERS returns to Earth in Q4 FY19

/ May 19, 2019

HCL Tech’s ERS unit posted an excellent growth of +12.1% yoy at CC. The growth positioned ERS as the second fastest ER&D services vendor (among top ten vendors) behind Alten, ahead of Altran. ERS’s growth is, however, slowing from its peak of +47.7% at CC in Q3 FY18.

KPIT’s first results since its IPO

/ May 18, 2019

KPIT published its first results since its IPO, as India’s third-largest ER&D services pure-play. Growth slowed down significantly in Q4 FY19, revenues up 13.4% yoy to USD 71m. The company’s EBITDA margin was 12.8%.

LLTS: a splendid performance in FY19!

/ May 11, 2019

LTTS continued to be impressive in FY19: the company grew revenues completed by 26.5% at CC (almost purely organic) to USD 723m. LLTS has now taken over Cyient as India’s largest listed ER&D pure-play.

KPIT returns to the stock market

/ May 1, 2019

Last week, KPIT Technologies, returned to India’s BSE and NSE. The company now has a market cap of approximately USD 410m with its share was introduced at a price of INR 99 and traded in the past few days between INR 103 and INR 115. KPIT has succeeded in its IPO and is now an ER&D service pure-play having sold its IT services business to Birlasoft.