You may have noticed we had not reported HCL Tech’s Q1 FY20 earnings. HCL has changed the way its reports its segments.
KPIT: a high-growth automotive pure-play
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
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.
QuEST Global expands in supply chain services for the aerospace industry
We missed an important acquisition that QuEST Global announced at the end of June. QuEST has acquired Dakota Moon Enterprises (DME).
HCL Tech completes the acquisition of IBM software products
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.
Cognizant to acquire Zenith Technologies and strengthens its MES capabilities for the life science industry
Cognizant has been making more headlines in ER&D services, recently. Last month, we had mentioned its
Wipro makes surprise acquisition. Acquires a CAD/PLM data integration specialist
We had to look back into our database to identify when Wipro had, for the last time, acquired an ER&D service vendor. In 2005-2006, Wipro acquired three ER&D services (Saraware, NewLogic, and Quantec) around semi-conductors and PLM services. And then, nothing for the following thirteen years.
HCL ERS returns to Earth in Q4 FY19
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
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!
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
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.
How will 2019 look like for the ER&D services industry?
We are now entering the season for Q1 earnings, and as always we will look into changes in major trends. The state of the automotive industry will be an area we will be closely monitoring.
Alten’s strategic plan: more of the same!
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HCL Tech’s ERS continued high growth. Up 17% in Q3 FY19
The revenue growth of HCL Tech’s ERS unit continued to be high in Q3 FY19 to 17.4% yoy at CC. Revenues well above the half-billion threshold, to USD 562m, comforting HCL Tech as the third largest ER&D service vendor globally.
KPIT reborn!
KPIT quietly finalized its merger with the privately-owned Birlasoft. The new company is now called Birlasoft and will be an IT service pure-play. Birlasoft has carved out its automotive engineering business that will be called KPIT.
Cyient suffered from a slowdown in its Service business in Q3 FY19
Cyient’s revenues were up 8.6% yoy and up 10.7% yoy at CC in Q3 FY19 to $165m.
Why onshore ER&D service vendors must pro-actively become India-centric
It is striking to see how few onshore ER&D service vendors have built a significant Indian or nearshore presence. Onshore vendors do acknowledge that the Indian ER&D service vendors grow faster than they do but argue that most of the Indian vendors service U.S. clients or industries (mostly, ISVs, technology vendors and telecom equipment manufacturers) they do not quite address.
2018: A Year in Review
2018 was an eventful year: the top ER&D vendors accelerated their M&A activities. Alten continued to deploy its business model. HCL Tech’s ERS unit had a superb year
HCL Tech and IBM (Part 4) A right move?
The USD 1.8bn HCL Tech deal is undoubtedly impressive and does raise many questions about the
HCL Tech and IBM (Part 3) More details about the deal: rationale and scope
We learned a bit more about the rationale of this USD 1.8bn deal under which HCL
Tata Motors still considering to offload Tata Technologies
In an interview published on LinkedIn, Warren Harris, the CEO of Tata Technologies (TTL) confirmed that
GlobalLogic Aiming to Triple Revenues by 2022
In an interview with Indian business paper the Economic Times, GlobalLogic expressed its intentions to reach
QuEST: Growth Ambitions in Germany
QuESTGlobal Services has big ambitions in Germany, where it intends to double its headcount in the
UPDATED: Cyient: Another Solid Performance in Q2 FY18
UDATED: Cyient: Another Solid Performance in Q2 FY18 Cyient continued, in Q2 FY19, to enjoy double-digit
HCL Tech in Q2 FY19: another brilliant quarter for ERS
HCL Tech’s ERS unit had another impressive performance with a CC growth in Q2 FY19 of