BG Srinivas and UB Pravin Rao in their new role as president at Infosys will focus on global markets, delivery and service innovation
Infosys Ltd on Friday appointed BG Srinivas and UB Pravin Rao as the presidents of the company with immediate effect. Both the presidents will report to SD Shibulal, chief executive officer and managing director.
In a statement, Infosys said its business portfolios will be realigned under the two presidents. BG Srinivas will focus on global markets while UB Pravin Rao will focus on global delivery and service innovation.
Infosys also said, the executive council as a forum, will discontinue with effect from 1 April 2014.
During last quarter Infosys have seen reshuffling of its management which follows several senior-level departures from the IT company since its founder, NR Narayana Murthy, returned in June 2013.
On 20 December 2013, V Balakrishnan, head of Infosys BPO, Finacle, India Business Unit, as well as chairman of Infosys Lodestone, resigned from Infosys. He was with Infosys Ltd since 1991.
On 19 December 2013, senior vice president and a member of Infosys' Executive Council Subrahmanyam Goparaju also resigned from Infosys.
During the same period, Infosys also announced the induction of Kiran Mazumdar-Shaw as an independent member of the Board, while UB Pravin Rao was inducted as a whole-time director.
Infosys closed Friday 2.61% higher at Rs3565.45 on the BSE, while the 30-share BSE S&P Sensex ended marginally down at 20,851.
BSNL declared 31st December and 1st January as blackout days for voice calls and reportedly collected more than double charges from its prepaid subscribers in Karnataka
State run telecom giant Bharat Sanchar Nigam Ltd (BSNL) has found a new and innovative formula to earn more revenues from its customers, especially pre-paid mobile subscribers. BSNL has informed its pre-paid subscribers from Karnataka circle that they would not get free or discounted rates for voice calling on 31st December and 1st January.
Most of the mobile operators declare certain days like New Year's eve and 1st January, and festivals like Diwali and Dussehra as blackout day for sending messages. This means, all messages sent on blackout days are charged at normal rates or at a higher rates, irrespective of the billing plan or special tariff vouchers (STVs) purchased by the subscriber.
Gopinath P, one of the readers of Moneylife said, "If you have purchased an Rs44 STV by virtue of which your outgoing call are to be charged at 0.6 paisa per second (or 36 paisa per minute) for 30 days. However as per the new diktat from BSNL, you will now be charged 1.5 paisa per sec (or 90 paisa per minute) on 31st December and 1st January. A 2.5 times hike for just two days and BSNL also gets to pocket the money paid for the STV."
The idea of declaring blackout days came into existence following unprecedented surge in traffic volumes, especially for SMS. In order to avoid network jams, mobile operators decided to charge more for sending SMS on these special days.
However, with more and more people using social networking apps, like Whatsapp, WeChat and Skype to send and receive messages and greetings, mobile operators are unable to earn money on these blackout days. Something like this may have prompted BSNL to come out with the idea of increasing call charges on 31st December and 1st January.
"On the lighter side however there is a silver lining, government companies can think out of the box indeed...Hats off to BSNL for this 'topi pahnanewala' scheme," Mr Gopinath concluded.
The upcoming general elections sees Credit Suisse optimistic on Indian cyclicals and believes that there are factors that support for an upward movement in HCL Technologies, Wipro, Tata Motors, Reliance, Sesa Sterlite and Cairn Energy
Credit Suisse is overweight on India, with the general election acting as a catalyst according to their latest research report. It stated: “Our overweight call on India is based on the general election acting as a catalyst for a potential inflection point on return on equity (ROE).” It feels that the three consecutive upward revisions in EPS provide support to their bullish call. Credit Suisse prefers cyclicals over defensives. Their top stock picks are HCL Technology, Wipro, Tata Motors, Reliance Industries, Sesa Sterlite and Cairn Energy.
It is bullish on cyclicals, given that the relative valuation gap between cyclicals and defensive is large enough to pick the former. The report stated: “We continue to favour cyclicals over defensives, particularly in India. The cyclicals defensive price-to-book gap in India at -4.2X is the biggest in the region.” The chart below shows the relative valuation gap.
Moreover, it feels that global factors, especially the United States economy will tip the scales in favour of cyclicals over defensives. The report said, “While Indian cyclicals have outperformed defensives by 22% since the lows on 30 April2 013, we believe valuations, EPS revisions and recent rises in US bond yields suggest further cyclicals outperformance.” The chart below shows the potential market bottoming associated with three consecutive “upwards” revisions in EPS.
According to Credit Suisse, it uses the MCSI’s broader definition of cyclicals which includes technology, energy, materials, consumer cyclicals and industrials; defensives include consumer staples, utilities and telecom.
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