Latest news with #MREConsulting
Mint
24-07-2025
- Business
- Mint
Was Infosys's solid Q1 performance a one-quarter wonder?
Infosys Ltd surprised the Street with sequential constant-currency (CC) revenue growth of 2.6% in the June quarter (Q1FY26) driven by traction across most verticals and geographies. It also saw40 basis points (bps) of inorganic contribution from the acquisitions of MRE Consulting and The Missing Link. Unlike in some earlier quarters, the quality of revenue generation improved, too, as growth was not driven by pass-through revenue this time. Revenuefrom the sale of third-party items bought for service delivery to clients is known aspass-through this, Infosys significantly exceeded the consensus CC revenue growth estimate of 1.5% and outpaced its tier-1 peers. The total contract value (TCV) for large deal wins declined 7% year-on-year to $3.8 billion in the quarter, but rose sequentially. Also, it was above the $2.4-2.6 billion range that Infosys clocked in recent 55% of the large-deal TCV was net new. Infosys closed 28 large deals in the quarter, with consolidation projects continuing to drive deal wins. Ideally, strong Q1 revenue and healthy deal bookings should have led to an increase in guidance. But that did not entirely materialise. The macroeconomicenvironment is still uncertain owing to lingering trade tariffs and geopolitical concerns. Clients thus remain cautious on discretionary IT spending, leading to delayed decision making, management and financial services verticalsaw healthy momentum, while hi-tech was weak, and manufacturing and retail were hit hardest by macro uncertainty. The stock declined 1.5% on Thursday. Guidance revisions While Infosys expects a stronger first half of FY26, the second half should see the usual seasonality. It has guided for FY26 CC revenue growth of 1%-3%, upgrading the lower end of guidance from 0 to 1% but leaving the upper end unchanged as it is currently not building in any macro improvement. Also, organic revenue growth guidance was trimmed from 0-3% to 0.6-2.6%. On the face of it this cut at the upper-end appears to be negative, said analysts at JM Financial Institutional Securities. Disappointingly, the guidance was revised despite positives such as productivity improvements from the enterprise AI platform aiding revenue trajectory and sequential improvement in deal wins. AI-driven productivity gains of 5-15% are being seen across client programmes, management said. The Q1FY26 earnings before interest and tax (Ebit) margin of 20.8% was lower than the consensus estimate. However, if helps that the sequential margin drop was only 20 bps, despite absorbing wage hikes, higher variable pay, and investments in sales and marketing. Headwinds from currency movements and sales and marketing investments were offset by an increase in realisation due to Project Maximus and lower third-party costs. Infosys maintained operating margin guidance of 20-22% for FY26. 'Given salary increment for the entire workforce is done in the last two quarters, further hikes are unlikely in the next two-three quarters, we think. Lower third-party expenses will be a key tailwind for margins, which should help offset potential ramp-up costs of large deals in FY26," said Nomura Global Markets Research report dated 23 July. Nomura expects Ebit margin of 21.1% in FY26, flat year-on-year. TCS's Ebit margin expanded 30 bps sequentially in Q1FY26 to 24.5%, but it is yet to decide on wage hikes for FY26. Meanwhile, Infosys shares have declined 15% over the past year, more than the 9.5% fall in the Nifty IT stock trades at 21 times estimated FY27 earnings, almost at par with TCS and HCL, showed Bloomberg data. Unless macros improve meaningfully, the Q1 positives alone may not be enough to salvage FY26 performance as near-term catalysts for a sharp re-rating seem limited.
Time of India
01-05-2025
- Business
- Time of India
Infosys completes acquisition of MRE Consulting
IT major Infosys has completed the acquisition of technology and business consulting firm MRE Consulting for $36 million (about Rs 305 crore) in an all-cash deal . The IT firm has acquired the consultancy company through its wholly owned subsidiary, Infosys Nova Holdings . #Pahalgam Terrorist Attack Nuclear Power! How India and Pakistan's arsenals stack up Does America have a plan to capture Pakistan's nuclear weapons? Airspace blockade: India plots a flight path to skip Pakistan The acquisition follows the announcement the company made on April 17, 2025, according to a regulatory filing on Thursday. It brings newer capabilities for Infosys in trading and risk management , especially in the energy sector. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Linda Kozlowski, 67, Shows Off Her Perfect Figure In A New Photo Investructor Undo "Infosys is witnessing a significant rise in demand for digital transformation in energy and commodity trading and risk management (E/CTRM). "By combining MRE Consulting's deep E/CTRM capabilities with Infosys' established leadership in the energy, resources and utilities sector, Infosys will aim to further enhance its ability to drive value for clients in this critical area of their business. MRE brings new clients and synergies with new buying centres," the company said in the filing. Live Events Texas-headquartered MRE Consulting will bring a team of over 200 professionals. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Founded in 1994, MRE Consulting provides technology and business consulting services to the energy & utilities, services, and healthcare industries.
Korea Herald
17-04-2025
- Business
- Korea Herald
Infosys to Acquire Leading Energy Consulting Company, MRE Consulting
Acquisition to strengthen energy and commodity trading and risk management (E/CTRM) capabilities for Infosys BENGALURU, India and HOUSTON, April 17, 2025 /PRNewswire/ -- Infosys (NSE, BSE, NYSE: INFY) a global leader in next-generation digital services and consulting, today announced a definitive agreement to acquire MRE Consulting Ltd. ('MRE Consulting'), a technology and business consulting service provider. This strategic investment brings newer capabilities for Infosys in trading and risk management, especially in the energy sector. Headquartered in Houston, Texas, MRE Consulting will bring a team of over 200 professionals with industry knowledge, consulting and deep technology experience in Energy/Commodity Trading and Risk Management (E/CTRM) platforms and ecosystems. Through decades of successful delivery, MRE Consulting has developed proprietary E/CTRM business process frameworks spanning multiple commodities, transportation modes and business models. These frameworks serve as the foundation for commodity trading projects, accelerating vendor selection, solution design and implementation. MRE brings new clients, and synergies with new buying centers. Ashiss Kumar Dash, EVP & Global Head – Services, Utilities, Resources, Energy, and Sustainability, Infosys, said, "The world is now shifting towards a more sustainable future. With increasing complexity in integrating diverse sources of energy including renewables, global corporations require innovative solutions to navigate transformation. At Infosys, we are witnessing a significant rise in demand for digital transformation in energy and commodity trading and risk management (E/CTRM). By combining MRE Consulting's deep E/CTRM capabilities with Infosys' established leadership in the energy, resources and utilities sector, we are further enhancing our ability to drive value for our clients in this critical area of their business. We are excited to welcome MRE Consulting and its leadership team to the Infosys family." MRE Founders, Mike Short, Dru Neikirk and Shane Merz, said, "The opportunities for our clients at the intersection of data, AI, and technology are vast. Beyond strong business synergy, we were seeking a partner who shared our values and mutual respect. By joining with Infosys, we will extend our expertise, deliver new capabilities, and expand beyond our current markets, while scaling what makes MRE special. We are truly excited about this new journey." The acquisition is expected to close during the first quarter of fiscal year 2026 (i.e. quarter ending June 30, 2025), subject to customary closing conditions. About MRE Consulting Founded in 1994, MRE Consulting provides technology and business consulting services to the Energy & Utilities, Services, and Healthcare industries. MRE specializes in business advisory and digital transformation for Energy/Commodity Trading and Risk Management (E/CTRM). MRE also provides comprehensive solutions across customer engagement, call center optimization, field service, CPQ/pricing, cloud infrastructure and digital workplace and is a Salesforce and Microsoft partner. We are proud to be recognized as a Houston Business Journal Best Places to Work. For more information, please visit About Infosys Infosys is a global leader in next-generation digital services and consulting. Over 300,000 of our people work to amplify human potential and create the next opportunity for people, businesses and communities. We enable clients in more than 56 countries to navigate their digital transformation. With over four decades of experience in managing the systems and workings of global enterprises, we expertly steer clients, as they navigate their digital transformation powered by cloud and AI. We enable them with an AI-first core, empower the business with agile digital at scale and drive continuous improvement with always-on learning through the transfer of digital skills, expertise, and ideas from our innovation ecosystem. We are deeply committed to being a well-governed, environmentally sustainable organization where diverse talent thrives in an inclusive workplace. Visit to see how Infosys (NSE, BSE, NYSE: INFY) can help your enterprise navigate your next. Safe Harbor Certain statements in this release concerning our future growth prospects, or our future financial or operating performance, are forward-looking statements intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results or outcomes to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the execution of our business strategy, increased competition for talent, our ability to attract and retain personnel, increase in wages, investments to reskill our employees, our ability to effectively implement a hybrid work model, economic uncertainties and geo-political situations, technologicassl disruptions and innovations such as Generative AI, the complex and evolving regulatory landscape including immigration regulation changes, our ESG vision, our capital allocation policy and expectations concerning our market position, future operations, margins, profitability, liquidity, capital resources, our corporate actions including acquisitions, and cybersecurity matters. Important factors that may cause actual results or outcomes to differ from those implied by the forward-looking statements are discussed in more detail in our US Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2024. These filings are available at Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and our reports to shareholders. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company unless it is required by law.
