The readings, from streaming results data, suggest that the economy has certainly been back on track in the three months to September even though not all businesses have returned to pre-pandemic levels.
At HDFC Bank, for example, payments and refunds were better. Once again, independent revenue at Avenue Supermarts was up nearly 50% year over year driven by improved footfall after the second wave. The increases were even better when compared to the same period in 2020. The retailer’s gross margins expanded 40 basis points year over year, while Ebitda’s margins increased 240 basis points year over year. IT players, who make up a large percentage of early birds, performed well.
Infosys reported excellent overall growth with stable margins and improvement in customer metrics. Margins at TCS were flat and analysts believe the company is well positioned to weather any headwinds.
In the early days, rising commodity prices would hurt operating margins for employed firms while increasing producers’ revenues. Car companies would have suffered from the lack of chips, as the volume data shows.
IT players are somewhere because attrition levels have risen sharply from the 10-20% to 20-30% range. In TCS, the attrition rate increased to 11.9% in Q2 FY22 from 8.6% in the previous quarter while at Infosys it was 20.1% from 13.9% in Q1 and in Wipro 20.5%.
To meet the shortage, they plan to hire graduates in large numbers; TCS is proposing to hire 35,000 new graduates in the second half of FY22 bringing the total number of graduates for the year to 78,000.
TCS has joined nearly 43,000 alumni in the past six months.
Praveen Rao, chief operating officer of Infosys, said the company intends to expand its plan to hire college graduates to 45,000 for this year; The company had earlier suggested hiring 35,000 graduates.