Business
Analysts seek visibility on tariff impacts on bottomlines, margins
IT analysts have been grilling the top CXOs of top-tier companies like TCS, Infosys and Wipro to get a visibility on the terrain in the backdrop of tariffs. K Krithivasan, Chief Executive Officer and Managing Director of TCS, said that the Consumer Business Group saw heightened caution and delays in discretionary projects, especially in the US.Jayesh Sanghrajka, Chief Financial Officer (CFO) of Infosys, tariffs and trade barriers were likely to lead to a subdued spend and delayed decision-making.
The impact
Based on client conversations, large transformation projects are being paused or delayed. Clients with budgets are waiting for certainty about the situation before moving forward.There is some impact across the board, but there are some sectors more impacted than others. “For instance, our consumer business, you’re seeing more impact like retail, CPG, airlines, travel hospitality, we see more impact. Similarly, there is an impact in the auto sub segment within manufacturing. But if you take BFSI, by and large the segment is doing okay. There is some softness in insurance,” he said.“Retail sector has been impacted by economic uncertainty resulting in lower consumer spending in core markets. Due to recent tariff announcements, client budgets are expected to be tightened and there is increased caution. Decision cycles are getting stretched for discretionary spend and large deals,” he said.Pallia said that after the pause for 90 days on the tariffs, there was a little bit of stability over the last two few weeks.
Uncertain economic environment
In the recent earnings call, he said that it was driven by the significant drop in consumer sentiment in February, which had preceded changes in global trade and tariffs, creating a domino effect on retail CPG and TTH (travel, transportation, and hospitality) industries.“The impact of tariffs on IT service providers will be a function of their portfolio of offerings and end markets,” Prashant Shukla, vice president, Everest Group, said. “Weakness in auto, especially in Europe continues. We are helping clients in aerospace resolve bottleneck in the supply chain,” he said. “For instance, in terms of topline and deal pipelines, part of portfolio which is discretionary in nature with exposure to directly impacted industries like manufacturing will suffer much more than, say, an essential, non-discretionary service with industry which is not directly impacted by tariffs, like banking. In short to medium term, cost-optimisation services will see more takers,” he said.Published on April 28, 2025 “We are seeing this impact not just in the US, but also in Europe. Similarly, these impacts are being seen across sectors, directly or indirectly. But some sectors have been impacted more, like consumer, manufacturing. Within manufacturing, specifically automotive and industrial, are impacted,” he said, responding to a query.Even as reciprocal tariffs by US President Donald Trump trigger an economic chaos across the world, IT analysts and investors are trying to weight how these tariffs could impact the bottomlines and margins of IT companies.He said the clients in all the industries were taking a lot more cautious approach. “And they’re also doing scenario planning, because they would like to see when this whole thing is settled down, before they start making more business decisions,” he said.
The impact
“We are seeing this impact not just in the US, but also in Europe. Similarly, these impacts are being seen across sectors, directly or indirectly. But some sectors have been impacted more, like consumer, manufacturing. Within manufacturing, specifically automotive and industrial, are impacted,” he said, responding to a query.“Retail sector has been impacted by economic uncertainty resulting in lower consumer spending in core markets. Due to recent tariff announcements, client budgets are expected to be tightened and there is increased caution. Decision cycles are getting stretched for discretionary spend and large deals,” he said.Srini Pallia, CEO and MD of Wipro Ltd, felt that the economic environment had become uncertain on the back of tariff increases.Pallia said that after the pause for 90 days on the tariffs, there was a little bit of stability over the last two few weeks.
Uncertain economic environment
Even as reciprocal tariffs by US President Donald Trump trigger an economic chaos across the world, IT analysts and investors are trying to weight how these tariffs could impact the bottomlines and margins of IT companies.“The impact of tariffs on IT service providers will be a function of their portfolio of offerings and end markets,” Prashant Shukla, vice president, Everest Group, said. “For instance, in terms of topline and deal pipelines, part of portfolio which is discretionary in nature with exposure to directly impacted industries like manufacturing will suffer much more than, say, an essential, non-discretionary service with industry which is not directly impacted by tariffs, like banking. In short to medium term, cost-optimisation services will see more takers,” he said.
There is some impact across the board, but there are some sectors more impacted than others. “For instance, our consumer business, you’re seeing more impact like retail, CPG, airlines, travel hospitality, we see more impact. Similarly, there is an impact in the auto sub segment within manufacturing. But if you take BFSI, by and large the segment is doing okay. There is some softness in insurance,” he said.He said the clients in all the industries were taking a lot more cautious approach. “And they’re also doing scenario planning, because they would like to see when this whole thing is settled down, before they start making more business decisions,” he said.“Weakness in auto, especially in Europe continues. We are helping clients in aerospace resolve bottleneck in the supply chain,” he said. IT analysts have been grilling the top CXOs of top-tier companies like TCS, Infosys and Wipro to get a visibility on the terrain in the backdrop of tariffs. K Krithivasan, Chief Executive Officer and Managing Director of TCS, said that the Consumer Business Group saw heightened caution and delays in discretionary projects, especially in the US.
Business
United Spirits Q4 PAT rises 17% to ₹451 cr for Q4FY25
For the full year FY25, it reported a PAT of ₹1,158 crore, up from last fiscal’s ₹1,312 crore.
Published on May 20, 2025
Business
DLF Q4 net profit rises 37% to ₹1,268 cr; FY25 profit surges 59%
“The Board has recommended a dividend of ₹6 per share for shareholders’ approval. This payout would signify a year-on-year growth of 20% in the dividend compared to the previous year,” the company said in a statement.For the full year, the company’s net profit stood at ₹4,357 crore, up 59 per cent y-o-y; while revenues (consolidated) stood at Rs 8996 crore. Revenue was driven by new sales bookings of ₹21,223 crore, up 44 per cent y-o-y.Published on May 19, 2025 The company generated a net cash surplus of ₹5,302 crore during the fiscal year, and its net cash position improved to ₹6,848 crore for FY25.
DLF’s annuity business, DLF Cyber City Developers Limited (DCCDL), stood at ₹6,448 crore; EBITDA stood at ₹4,949 crore, reflecting a y-o-y growth of 11%; consolidated profit for the year stood at ₹2,461 crore, a y-o-y growth of 46%.Published on May 19, 2025 The company generated a net cash surplus of ₹5,302 crore during the fiscal year, and its net cash position improved to ₹6,848 crore for FY25.“The Board has recommended a dividend of ₹6 per share for shareholders’ approval. This payout would signify a year-on-year growth of 20% in the dividend compared to the previous year,” the company said in a statement.For the full year, the company’s net profit stood at ₹4,357 crore, up 59 per cent y-o-y; while revenues (consolidated) stood at Rs 8996 crore. Revenue was driven by new sales bookings of ₹21,223 crore, up 44 per cent y-o-y.The other big-ticket launch, DLF Privana West, witnessed a complete sellout within a few days of the soft launch, clocking approximately ₹5,600 crore of new sales bookings.“The Dahlias, received encouraging demand and generated ₹13,744 crore in new sales bookings during the fiscal. This has resulted in the monetization of approximately 39 percent of the estimated total sales potential of this project within the first year of its launch,” the company said in a statement. The country’s largest realtor, DLF, reported a net profit of ₹1,268 crore, up 37 per cent y-o-y, for the quarter ending March 31, 2025. Revenue (consolidated) for the period stood at ₹3,348 crore.
Business
Editorial. Pressure tactics
Since April 8, when President Trump slapped his reciprocal tariffs on 57 countries with a 90-day deadline for them to take effect, his administration has gone overboard in ramping up the pressure on India. The gambit here is crudely simple — to force India to ink a deal in these 90 days, before July 8, in order to escape the 26 per cent tariffs that are expected to kick in after that. The same trick is being played out with the rest of the world as well, forcing quite a few countries to line up for talks with the US. In India’s case, Trump and his colleagues have cynically generated a lot of confusion. India has maintained a studied silence in the face of zero tariff claims. Its reticence was perhaps aimed at ensuring that the talks proceeded in good faith. But US’ actions have marred the process. Trump has proposed a ‘big beautiful Bill’ that may ‘tax’ 5 per cent of billion NRI remittance outflows. India should be circumspect in the face of pressure, without allowing the US to set the pace in the talks. A bad deal cobbled in haste is far worse than none at all. Meanwhile, India sent out another sharp message that it will look out for its interests. In a throwback to Trump 1.0, India has proposed retaliatory action on US’ tariffs on steel and aluminium. However, it needs to work out a plan with respect to other areas as well. At the outset, it should be clear that the US’ interests in India go beyond trade per se to persuading India to alter its regulatory systems with respect to GM food, e-commerce, big tech, pharma and other high tech sectors. It is also keen on access to India’s food (maize and soyabean) and dairy sector, besides selling defence equipment and oil. India has enough in its toolkit to squeeze a deal that does not hurt its interests. A levy on e-commerce monopolies, a cap on royalty payments, applying data localisation rules and compulsory licensing of patented drugs can be used to ward off an adverse outcome.
There is scope to bring down tariffs in products which are zero-rated with other FTAs. A deal that brings down tariffs on India’s goods to 10 per cent is possible without much sacrifice. But Trump’s bluff and bluster must be called out, whether it is over trade or matters of national security, even as we keep our ties with US on an even keel. Meanwhile, India sent out another sharp message that it will look out for its interests. In a throwback to Trump 1.0, India has proposed retaliatory action on US’ tariffs on steel and aluminium. However, it needs to work out a plan with respect to other areas as well. At the outset, it should be clear that the US’ interests in India go beyond trade per se to persuading India to alter its regulatory systems with respect to GM food, e-commerce, big tech, pharma and other high tech sectors. It is also keen on access to India’s food (maize and soyabean) and dairy sector, besides selling defence equipment and oil. India has enough in its toolkit to squeeze a deal that does not hurt its interests. A levy on e-commerce monopolies, a cap on royalty payments, applying data localisation rules and compulsory licensing of patented drugs can be used to ward off an adverse outcome. In a move that perhaps marks a shift in the way India is approaching trade talks with the US, the External Affairs Minister S Jaishankar has firmly refuted the US’ claim, made repeatedly in recent weeks, that India has agreed to nil tariffs on US imports. Jaishankar’s statement last week tersely and firmly clarifies that trade talks are in progress, and ‘nothing is decided until everything is decided’. India has cleared the air, and it was high time that it did so. It coincides with the upcoming trade talks between the two countries this week; Commerce and Industries Minister Piyush Goyal is in the US with his team of negotiators.
United Spirits Q4 PAT rises 17% to ₹451 cr for Q4FY25
DLF Q4 net profit rises 37% to ₹1,268 cr; FY25 profit surges 59%
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