TCS, Infosys Annual Report Analysis - Employee Pyramid Weakens; AI, ESG Gain Prominence: ICICI Securities

ICICI Securities Report

Tata Consultancy Services Ltd./Infosys Ltd.’s annual report analysis points to a weakening employee pyramid. In a common string, artificial intelligence and sustainability technology solutions are gaining prominence.

AI integration into existing product platforms and services, reskilling the workforce on generative AI (GenAI) and expansion of GenAI partnerships/ ecosystem stitch the strategic path to leveraging GenAI opportunities.

A strong focus on ESG should translate well into bagging large deals. The key enterprise demand themes are:

1. Cloud transformation.

2. Cost takeout – AI being used as a key lever.

3. New energy/sustainability.

4. Supply chain transformation.

These themes drove 25.2%/80.6% order book growth for TCS/Infosys in FY24. In the current soft-demand environment, we prefer TCS/Infosys in large-caps and Persistent Systems Ltd. in mid-caps.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.