Strategy Boffins

TCS and Infosys 2024 Q3 results

Before Market Opens

In the third quarter of the financial year 2024, Infosys and Tata Consultancy Services (TCS) showcased distinct financial performances. Infosys reported an EPS of 18 cents, aligning with analyst estimates, and a revenue of $4.66 billion, slightly above expectations. However, the company experienced a 7.3% drop in net profit and a decline in operating margin to 20.5%. Infosys revised its full-year revenue growth to 1.5%-2.0% and announced significant deal signings worth $3.2 billion, alongside an acquisition to bolster its Chip-to-Cloud strategy. Attrition improved to 12.9%. In contrast, TCS reported a 2% increase in net profit and a 4% rise in revenue, with an operating margin of 25%. The company declared a dividend of Rs 27 per share and maintained a comfortable attrition rate of 13.3%. TCS continued investing in technologies like Generative AI and reported a robust order book with a TCV of $34.1 billion. TCS shares showed a positive trend, closing up 0.61% on the BSE. Both companies demonstrated resilience and strategic growth in a challenging market environment.

TCS and Infosys 2024 Q3 results

Technology and Prosperity: The Choices We Make

Idea Almanac

“Technology is not destiny. It is a powerful tool that can be used for good or for ill. The choice is ours.” – Daron Acemoglu and Simon Johnson

In Power and Progress, Daron Acemoglu and Simon Johnson argue that the relationship between technology and prosperity is not always straightforward. They show that technological progress can lead to both greater inequality and greater prosperity, depending on how the benefits of technology are distributed. Acemoglu and Johnson argue that we need to find ways to ensure that the benefits of technology are shared more widely in order to achieve lasting prosperity.

Constraints are the third ingredient, after causality and counterfactuals

Idea Almanac

“Constraints are the third ingredient, after causality and counterfactuals, for framing to work. Without constraints, we might imagine an enormous range of alternative realities that are so ill-connected to the causal mental model that they fail to inform our actions. We need the right boundaries for our imagination to elicit the choices we have. Constraints are rules and restrictions that shape our counterfactual thinking in a particular way. We can play with them—by loosening or tightening them, and by adding new ones or removing old ones. With constraints, framing goes from the purview of cognition to the basis of actions that matter.”

Excerpt From: Kenneth Cukier. “Framers.”

A theory of strings of symbols

Idea Almanac

“When in the late 1940s C.E.Shannon created Information Theory there was a general belief he should call it Communication Theory, but he insisted on the word “information”, and it is exactly that word which has been the constant source of both interest and of disappointment in the theory. One wants to have a theory of “information” but it is simply a theory of strings of symbols. Again, all we suppose is there is such a source, and we are going to encode it for transmission.”

Excerpt From: Richard R. Hamming. “Art of Doing Science and Engineering: Learning to Learn.”

Inestimable value of introspection in the preservation of life

Idea Almanac

“From childhood I was compelled to concentrate attention upon myself. This caused me much suffering but, to my present view, it was a blessing in disguise for it has taught me to appreciate the inestimable value of introspection in the preservation of life, as well as a means of achievement. The pressure of occupation and the incessant stream of impressions pouring into our consciousness thru all the gateways of knowledge make modern existence hazardous in many ways. Most persons are so absorbed in the contemplation of the outside world that they are wholly oblivious to what is passing on within themselves.”

Excerpt From: Nikola Tesla. “My Inventions: The Autobiography of Nikola Tesla.”

Byzantine Generals Problem

Idea Almanac

We have a problem. This is called a consensus failure. The people in the network did not come to consensus on what the state of reality is. Having no better system, they went with majority rule, which led to dishonest people controlling the network and spending money they didn’t have. If we want to make a permissionless system where anyone can participate without asking, then it must also be resilient to dishonest actors. Now we get to solve one of the hardest problems in computer science: distributed consensus between parties where some are dishonest or unreliable. This problem is known as the Byzantine Generals Problem and is the key that Satoshi Nakamoto used to unlock the invention of Bitcoin.

Inventing Bitcoin: The Technology Behind The First Truly Scarce and Decentralized Money Explained

Strategy Boffins

Explore

Collections

Energy

Captivating