Infosys Technologies

Alchemist

Administrator
Staff member
#41
How would it mean further dip in Infy's earnings ? Would the earnings from Lodestone not bring credit to Infosys ?
I couldn't find any details about Lodestone's financials.

The eps may go down in two cases:

1. Lodestone is a loss-making firm.
2. Lodestone was bought for a high price. Don't forget that Lodestone's acquisition will bring down Infosys' cash balance and hence the company's interest income will go down.

Every Rs 100 worth of cash gives Infosys around Rs 5-6 of post-tax interest income.
 

Alchemist

Administrator
Staff member
#43
How does the money spent on the acquisition reflect on the income statement? Is it booked once, amortized or not included at all?
As far as acquisition costs are concerned, there is no uniformity in India.

Acquisition-related costs

Currently there is no specific guidance on accounting for acquisition-related costs under Indian GAAP. In practice, most companies consider acquisition-related cost for goodwill calculation, which is not in accordance with IFRS or Ind AS, which categorise such costs under income statement.
Business Line : Industry & Economy / Taxation & Accounts : Accounting for overseas buys

Hindalco had written-off a part of its investment in Novelis by adjusting it against share premium account.

India’s biggest aluminium producer, Hindalco Industries Ltd, is planning to route the cost of buying Novelis Inc. through the balance sheet, rather than the usual practice of showing it in the profit and loss account.
Hindalco trying to hide losses on Novelis investment - Livemint

I am not sure what Infosys will be doing, but I guess it will stick to the policy that it has followed in the path.
 

Alchemist

Administrator
Staff member
#47
Results are not so bad to deserve a 20% plus fall.

What's cooking?
I guess the sharp correction was caused by a combination of excessive leverage and disappointing results.

Infosys has given a guidance on only 6%-10% for next year. Also, the company hasn't given an EPS estimate.

With increasing costs, it's possible that Infosys reports a lower PAT next year (assuming the Rupee remains stable).

One thing I noted, the market capitalization of TCS is now twice that of Infosys.

It seems the market has given up on Infosys.
 

Alchemist

Administrator
Staff member
#50
I think Infosys has a good chance of losing this lawsuit. And if that happens, I think similar lawsuits will happen on other Indian companies.
I too feel Infosys will lose this one. From whatever I have heard and read about Indian IT companies in US, I don't think these allegations are baseless. Companies avoid hiring Americans because Americans demand higher salaries, not because they are less talented.
 

Atiker

Active member
#52
I too feel Infosys will lose this one. From whatever I have heard and read about Indian IT companies in US, I don't think these allegations are baseless. Companies avoid hiring Americans because Americans demand higher salaries, not because they are less talented.
And this applies to both Indian as well as American companies. Even American companies prefer desi coolies.

Not enough American are ready to do shitty work on unholy hours at peanut salary. Will any American be ready to attend unannounced p1 calls on a weekend ? Only Indians (and maybe Chinese) put their family on second pedestal.

Another reason is if one is willing to pay peanuts, monkey is what they will get.
 

Alchemist

Administrator
Staff member
#53
And this applies to both Indian as well as American companies. Even American companies prefer desi coolies.

Not enough American are ready to do shitty work on unholy hours at peanut salary. Will any American be ready to attend unannounced p1 calls on a weekend ? Only Indians (and maybe Chinese) put their family on second pedestal.

Another reason is if one is willing to pay peanuts, monkey is what they will get.
The question is will the courts accept such excuses?

"Others are also doing it" is a weak defense in court.

Can the company prove that "Americans are lazy" and so it hires Indians?
 
#54
It is an open secret that Indian IT companies abuse visa laws to staff low cost resources from Asian countries (mainly from India).

The reason why this has gone on for decades is because it is very difficult to prove it.

Though the companies do not follow the laws in "spirit", they do manage to follow it in "letter".

Unless an insider divulges secrets, this will be very difficult to prove.
 

man4urheart

Well-known member
#57
Results are ahead this weekend on coming Friday and Infosys in tight range. What should be the strategy in options to play?

3000 Long Straddle ?
2700/3300 OR 2600/3400 Long Strangle ?
3000 Short Straddle?
2700/3300 OR 2600/3400 Short Strangle?
Go Long on futures at 3000 and take a Put at 3000 for 170 RS?
Go Short on futures at 3000 and take a call at 3000 for 212 Rs?
Buy 125 shares in cash and sell 3000 Put for 170 Rs?

Last the least watch show from sidelines!

One of them would be a winner?
 

San Yad

Active member
#58
Results are ahead this weekend on coming Friday and Infosys in tight range. What should be the strategy in options to play?

3000 Long Straddle ?
2700/3300 OR 2600/3400 Long Strangle ?
3000 Short Straddle?
2700/3300 OR 2600/3400 Short Strangle?
Go Long on futures at 3000 and take a Put at 3000 for 170 RS?
Go Short on futures at 3000 and take a call at 3000 for 212 Rs?
Buy 125 shares in cash and sell 3000 Put for 170 Rs?

Last the least watch show from sidelines!

One of them would be a winner?
All strategies sound good.

Which one strategy are you planning to go for?

May be we can try to take on Monday ahead of result.

Rs vs. USD is 50-50 as it's in the middle.

So Neutral effect.

2nd, Result would be same as before qtrs. Last qrt was up because the one of its former employee re-joined.

In a nutshell one should look downside target I think. [But technically it does not look weak so far].

So hard to judge at this movement.

Any strategy that you think of?

Happy Investing !
 

Alchemist

Administrator
Staff member
#60
You could try a reverse iron butterfly looking to capture a 10% movement on either side before expiry.
That's my suggestion too, but I feel it's better to sell options that are close to the current market price. I don't expect any exceptionally large move on either side.

Further the options are from the current price, further the breakeven point will be.
 
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