Gabriel India consolidated net profit rises 7.61% in the June 2025 quarter
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Time of India
23 minutes ago
- Time of India
AI Impact: Big discounts in IT deals hurt, but tech spend set to rise, says Coforge CEO
Major clients renewing IT contracts at 30-50% lower rates, citing increasing use of artificial intelligence (AI), is deflationary for the outsourcing industry, Coforge chief executive Sudhir Singh said. At the same time, however, technology spends on transformational projects are on the rise, he told ET in an interview.'Every time there is a disruptive technology, tech spend as an aggregate always increases,' Singh said, adding that Coforge aims to capitalise on $283-billion outsourcing industry's clients globally are seeing a contraction in the investments on 'run budgets' such as infrastructure, maintenance, and testing, he noted.'Having said that, there is no enterprise which is saying that with AI having come in, we will reduce our spend on technology. They understand it is a massive lever for driving change and transformation,' Singh AI disruption and an uncertain macro environment, Indian software service providers are facing heightened cost pressures on account of a fundamental shift in their deals and seems to have bucked that mid-tier IT firm won a $1.5-billion deal from US firm Sabre through request for proposal (RFP) in the March quarter, beating two large IT service the June quarter, the Noida-and-New Jersey-headquartered firm won five large deals, with total orders worth $507 revenue rose 8.2% sequentially in rupee terms and by 9.6% in dollar terms to Rs 3,688.6 crore, or $442.4 million. Year-on-year, the revenue grew 54% both in rupee and dollar terms, supported by the Cigniti acquisition. Margins improved to 17.5%, from 16.9% in the preceding quarter, but declined from 18% a year comes at a time when most larger peers are witnessing a sub-5% revenue growth and Coforge's immediate rivals are seeing a margin of March end, the company is the eighth largest Indian IT firm with a revenue of $1.45 billion for FY25, behind Mphasis , which reported a revenue of $1.68 billion for the 2020, NIIT Technologies was rebranded as Coforge a year after it was taken over by Baring Private Equity Asia. Its revenue was $600 million then.'We were a small cap,' Singh said. 'When we came was three times our size. We will, I think, take over Mphasis next quarter, we should be the biggest mid cap.'Coforge has been reporting stronger growth than larger industry peers, steadily climbing the ranks among the top 10 IT also expects the company's margin to go up by at least 140 basis points, or 1.4 percentage points, in FY26 despite subdued demand and macro environment. 'We'd be very comfortable growing around 18-19% in the short term, till we hit $5 billion,' he also underlined that there is no material de-hyphenation of revenue-to-headcount growth at present and majority of the impact on jobs is still on select AI-based fixed-price and milestone-based contracts continue to demand employees and Coforge will continue to increase its workforce as of now, he clients are looking to slash the run budget, they are increasing the 'change budget,' which used to be called the development projects.'These days, we call it transformation projects. Such projects' conversion does not happen through RFPs (request for proposals) as enterprises are still not yet fluent on how to apply AI to drive such projects,' Singh said.'We, for one, try to focus more on the change bucket, where you don't have to compete with an RFP that has come out,' he added.
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Business Standard
23 minutes ago
- Business Standard
Banks fund India's digital payments while fintechs reap the revenue
UPI cost burden reaches Rs 8,500 crore annually as third-party apps dominate customer engagement Peerzada Abrar Bengaluru Listen to This Article Indian banks are bearing an annual ₹8,500 crore cost burden to operate the country's digital payments infrastructure while fintech competitors leverage this network to generate revenue from lending and financial services, according to a report by fintech firm Zeta. 'A central irony in the UPI model is that banks shoulder much of the cost while the rest of the ecosystem captures its value and visibility with users. With zero MDR (merchant discount rate) in place, nearly all operating costs, transaction processing, infrastructure maintenance, fraud mitigation, and compliance, fall on issuing banks. Industry estimates peg annual UPI operating costs at ₹10,000
Economic Times
23 minutes ago
- Economic Times
US ending 'de minimis' exception hits cross-border payment firms
ANI Cross-border payment firms are bracing for a 15-25% fall in ecommerce shipments from India to the United States after the scrapping of a provision allowing tax-free import of packages worth up to $800 (about Rs 70,000) into the US takes effect on August 29. President Donald Trump on May 2 signed an executive order ending the 'de minimis' exemption, derived from a Latin phrase which refers to a principle where minor matters are disregarded by the law. Indian exporters, particularly small businesses and online-first direct-to-consumer (D2C) brands, benefited from this facility as it enabled them to compete in a favourable environment in the world's largest consumer market, said industry executives. 'In the short term, we should brace for a 15-25% decline in shipment volumes to the US, as the new duty structures will cause immediate friction in consumer buying behaviour,' said Sanjay Tripathi, cofounder, BriskPe, a Mumbai-based cross-border payment firm. The impact is likely to be most pronounced for Indian sellers of handicrafts, textiles, jewellery and home decor items through American online commerce portals such as Amazon and eBay.'It will disproportionately hurt small businesses and entrepreneurs in the growing India-to-US ecommerce market. We estimate that roughly 4-6% of India's goods exports to the United States will be directly affected,' said Movin Jain, cofounder of Skydo, a Bengaluru-based cross-border focused payment runs a global seller programme which allows Indian sellers to send shipment to the US either directly to consumers or to American stores. Amazon's Global Selling website shows that in 2023, the latest year for which data is available, Indians sold products worth more than $8 billion through this programme. With the US doing away with the de minimis exemption, exporters might shift to sending products by sea, which means longer delivery schedules. Besides, for American consumers of goods such as ethnic jewellery made in India, prices are likely to shoot up, hurting both sides. While specific data pertaining to exports to the US through this route is not available, commerce ministry figures show that in July India exported tea worth Rs 815 crore, gems and jewellery worth Rs 20,577 crore and handicrafts worth Rs 1,320 crore. A large part of the consignments through this trade route would comprise these products, according to industry of BriskPe said as per estimates more than 40% of India's shipments to the US were routed through this channel, particularly by small and mid-sized exporters who sell through Amazon, Walmart, Etsy, eBay and their own D2C storefronts. 'Its disruption will, therefore, ripple across not only sellers but also logistics players, payment processors and marketplaces that thrive on sub-$800 parcel flows,' he Reserve Bank of India recently tightened oversight of players such as BriskPe, Skydo and PayGlocal who are focused on processing cross-border payments. Large payment firms such as Cashfree and Razorpay also operate in this sector, serving exporters and licences helped these firms attract venture funding. While BriskPe raised $5 million from PayU last year, Skydo raised $10 million from Elevation Capital and others. PayGlocal has raised around $17 million from the likes of Peak XV Partners and Tiger Global.'We cater to online service providers, edtech platforms and software exporters. That segment will not be hurt but ecommerce sellers and D2C brands were definitely among the new growing client base for these payment firms,' a founder of a payment firm said on condition of the new merchants being onboarded, about 40% would be global ecommerce sellers, according to the of these firms may shift their focus towards medium and large exporters, a sector usually catered to by banks. Software exports, which account for almost 50% of the India-US trade, remain untouched by the trade of Skydo said Indian sellers will not only have to bear shrinking business margins but also undertake the paperwork related to tariff payments. The US has announced a 50% tariff on India, including 25% as penalty for buying Russian oil which is set to take effect on August 27. Industry executives, however, said that small businesses tend to be resilient and hence sellers may rework their strategies. The sellers have multiple options from consolidating shipments to spread taxes across multiple orders, target high-value categories where margins are better and the levies can be absorbed, they said. Besides, mid-sized sellers may look to set up fulfilment centres closer to the US to reduce logistics costs.'In the long term, we'll likely see sellers diversify into emerging ecommerce trade corridors, particularly duty-free markets like the UAE and the UK,' Jain said. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Hacking, ransom, lawsuits: Why social engineering is TCS, Cognizant's latest headache Govt easing policies to boost growth; when will industry play ball? Can new shipping laws bury the ghost of British legacy? How IDBI banker landed plush Delhi properties in Amtek's INR33k crore skimming Stock Radar: M&M hits fresh record high in August 2025; time to buy or book profits? 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