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Infosys declares Rs21 dividend as Q2 profit rises 2.2%

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  • Revenues rise 5.1% on strong deal ramp-ups, advancements in GenAI initiatives and ongoing cost optimisation efforts.

Infosys, one of India’s leading IT companies, reported a modest 2.2 per cent rise in net profit for the second quarter of FY25, amounting to Rs6,506 crore.

The figure, however, fell below the expectations of analysts, reflecting challenges in profit expansion despite positive trends in revenue.

The company’s revenue demonstrated a healthy growth trajectory, increasing by 5.1 per cent year-on-year (YoY) to reach Rs40,986 crore for the July-September period, surpassing forecasts and indicating resilience in its core operations.

The company attributed its performance to several strategic initiatives, including strong deal ramp-ups, advancements in generative AI initiatives, and ongoing cost optimisation efforts.

These factors have enabled Infosys to revise its full-year revenue growth guidance upward to a range of 3.75-4.5 per cent, an improvement from the previous projection of 3-4 per cent announced in July.

Strong growth in large deals

Notably, the recent acquisition of In-Tech, a research and development services provider, has likely enhanced the company’s capabilities and contributed to its revenue growth.

Significantly, the total contract value (TCV) from large deals reached $2.4 billion for the quarter, reflecting a robust momentum in securing high-value contracts. Although Infosys maintained a steady operating margin of 21.1 per cent, this stability suggests a slight strain on profitability amid the growth in revenue.

Salil Parekh, CEO and Managing Director of Infosys, highlighted the company’s solid growth of 3.1 per cent quarter-on-quarter (QoQ) in constant currency for Q2. He noted that the growth was broad-based, with notable momentum in the financial services sector.

“The performance is attributed to Infosys’s industry expertise and market-leading capabilities in cloud services through its Cobalt platform and generative AI initiatives via its Topaz offering, which enhance client engagement and preference for partnerships.”

Furthermore, Infosys announced an interim dividend of Rs21 per share, reinforcing its commitment to returning value to shareholders. The record date for this dividend is set for October 29, with a payout scheduled for November 8.

The dividend announcement follows the company’s previous fiscal year’s distributions, which included a final dividend of Rs20, a special dividend of Rs8, and an interim dividend of Rs18.

Microsoft faces alarming 600m cyberattacks per day

  • Aside from the US and the UK, most of the nation-state-affiliated cyber threat activity concentrated around Israel, Ukraine, the UAE and Taiwan.
  • Russia, Iran, and China have all used ongoing geopolitical matters to drive discord on sensitive domestic issues.

In an era where digital transformation permeates every facet of life, the security of information systems has emerged as a paramount concern.

The Microsoft Digital Defense Report 2024 reveals that the tech giant faces an alarming 600 million cyberattacks daily, encompassing threats such as ransomware, identity theft, and phishing schemes.

As articulated by Tom Burt, Corporate Vice President of Customer Security and Trust at Microsoft, “The immediate outlook is pessimistic.”

The assertion underscores the grave and escalating challenges posed by cybercriminals, especially those affiliated with state-sponsored entities, which appear increasingly undeterred by the consequences of their malicious actions.

Despite Microsoft’s commendable efforts in addressing these threats—employing approximately 34,000 full-time security engineers and collaborating with an additional 15,000 partners with specialised expertise—the adversarial landscape continues to evolve in complexity.

Proactive measures

Cybercriminals and state-sponsored actors are not only better resourced but also exhibit enhanced technical sophistication, utilising advanced tactics and tools to exploit vulnerabilities.

The trend is evident in the dramatic 400 per cent  increase in tech scams since 2022 and a staggering 2.75 times rise in ransomware attack attempts over the same span.

The report also highlights a noteworthy development: while ransomware attack attempts have surged, Microsoft has effectively achieved a threefold reduction in ransomware incidents that progress to the encryption stage.

This indicates that while the threat level has escalated, proactive measures have yielded some success in thwarting devastating outcomes. However, this does little to alleviate concerns about nation-state actors, who have become increasingly aggressive and innovative in their cyber operations.

These groups are not merely engaged in data theft; they are also perpetrating ransomware attacks, establishing backdoors for future exploitation, sabotaging operations, and conducting sophisticated influence campaigns.

Cybersecurity strategies

Microsoft’s ability to counter these threats is underscored by its processing of an astonishing 78 trillion security signals and blocking 7,000 password attacks each second.

Nonetheless, the growing aggressiveness of state-sponsored hackers necessitates a reevaluation of cybersecurity strategies on both corporate and national levels.

Aside from the United States and the United Kingdom, most of the nation-state-affiliated cyber threat activity was concentrated around Israel, Ukraine, the UAE and Taiwan.

In addition, Iran and Russia have used both the Russia-Ukraine war and the Israel-Hamas conflict to spread divisive and misleading messages through propaganda campaigns that extend their influence beyond the geographical boundaries of the conflict zones, demonstrating the globalised nature of hybrid warfare.  

Russia, Iran, and China have all used ongoing geopolitical matters to drive discord on sensitive domestic issues leading up to the US election, seeking to sway audiences in the US to one party or candidate over another, or to degrade confidence in elections as a foundation of democracy.

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Gen Z spending expected to reach $2tr in India by 2035

  • Out of total spending, $200b stems from direct earnings while $660b is influenced spending.
  • Marketers must recognise and respond to the unique values and beliefs that characterise this generation.

With over 377 million individuals, Gen Z represents the largest generation in India’s history, commanding a remarkable $860 billion in collective spending, equating to about 43 per cent of the country’s total consumption.

This figure is projected to soar to $2 trillion by 2035, positioning Gen Z as a pivotal force in shaping economic growth, according to a report by Boston Consulting Group (BCG) in collaboration with Snap Inc.

Pulkit Trivedi, Managing Director, India at Snap Inc., articulates the significance of this demographic, asserting that they will play a crucial role in driving India’s consumption growth over the next two decades.

By 2025, Gen Z’s direct spending is expected to reach Rs250 billion, with one out of four members already participating in the workforce.

The demographic’s spending habits are characterised by a thorough research process—over 1.5 times more than that of Millennials—reflecting a robust and deliberate approach to purchasing.

The report highlights the diverse spending patterns of Gen Z, indicating that they account for substantial expenditure across various categories: 50 per cent on footwear, 48 per cent on dining, and 47 per cent on fashion and lifestyle.

Intriguingly, within their total spending power, approximately $200 billion stems from direct earnings, while $660 billion is influenced spending, demonstrating the significance of peer recommendations and social connections in their purchasing decisions.

Visual communication plays a crucial role in how Gen Z interacts with brands and shares experiences.

New opportunities

Nearly 80 per cent rely on images, GIFs, and immersive visuals to express their identities and connect with peers, underscoring the need for brands to engage with this generation through visually compelling marketing strategies.

Despite the evident opportunities for businesses, the report reveals a concerning trend: only 15 per cent of companies are actively capitalising on the insights provided.

However, 45 per cent have recognised the potential of this demographic and expressed interest in adapting their strategies accordingly.

As Nimisha Jain, Senior Partner and Managing Director at BCG India, emphasizes, Gen Z’s influence transcends multiple sectors, including fashion, dining, automobiles, and consumer durables.

To effectively engage with Gen Z, marketers must recognise and respond to the unique values and beliefs that characterize this generation. The disparity between the enormous spending potential of Gen Z and the limited response from brands illustrates a significant gap that requires urgent attention.

As the generation continues to mature, their impact on consumer trends will only intensify, presenting both challenges and opportunities for businesses willing to adapt to their distinct purchasing behaviours. Embracing these insights could pave the way for innovative marketing strategies that resonate with the aspirations of a generation poised to shape the economic landscape of India.

UAE’s G42 shrugs off possible cap on AI chip sales by US

Following reports indicating that the Biden administration is deliberating caps on advanced Nvidia chip sales to Arabian Gulf countries, Peng Xiao, CEO of G42, a Microsoft-backed artificial intelligence firm based in Abu Dhabi, said that such developments would not come as a surprise.

He stated, “I don’t think it’s anything new,” alluding to the existing framework of export controls designed to mitigate security risks associated with emerging technologies.

Historically, US export restrictions have been primarily aimed at curbing China’s technological aspirations, particularly in the realm of artificial intelligence.

However, the possible extension of these caps to other countries in the Middle East raises significant concerns regarding technological access and international collaboration within the sector.

Currently, the US government has instituted limitations on AI chip shipments from leading firms, including Nvidia and Advanced Micro Devices Inc, to over 40 nations across the Middle East, Africa, and Asia, primarily to prevent these technologies from being repurposed for Chinese military applications.

Exploring diverse partnerships

G42 is positioning itself to emerge as a leader in AI within the Middle East. Operating under the auspices of Sheikh Tahnoon bin Zayed Al Nahyan, a prominent figure in the UAE’s political landscape, G42 is actively deploying high-performance Nvidia H100 GPUs while also exploring diverse partnerships to expand its hardware capabilities.

Notably, the firm has garnered significant revenue from startups such as Cerebras Systems Inc., which aims to compete with Nvidia in the AI computing arena.

Despite the shifting geopolitical landscape, Xiao remains optimistic about future collaborations between G42 and the US, regardless of the outcome of the impending presidential election.

He underscored a solid collaboration framework between the UAE and the United States in the fields of AI and technology, signifying a mutual commitment to innovation and partnership.

Xiao’s recent discussions with US leaders, including President Biden and key executives from major technology companies, underscore a proactive approach to international cooperation, even amidst the uncertainty surrounding US policies.

Conversing with clusters of bones at Cambridge University Museum of Zoology  

  • Using AI, one may now engage in a lively discourse with the very remains of these creatures, as if they were indeed reanimated entities rather than lifeless tokens of curiosity.

Ladies and gentlemen, boys and girls, and venerable members of the academic community, you are hereby cordially invited to consider a most splendid development in the realm of mortal remains showcased within the hallowed halls of museums, particularly those that unabashedly present a veritable menagerie of deceased specimens.

Indeed, we are accustomed to venerable institutions displaying the pickled bodies of strange and exotic creatures, the meticulously stuffed carcasses of remarkable beasts, and the elegant yet eerie assemblages of skeletal remains that have long since succumbed to the inexorable passage of time.

And yet, one might ask: is there not a profound yearning for a little levity in the company of these silent sentinels of the past?

Reanimated entities

Enter the Cambridge University Museum of Zoology, which has, with remarkable foresight and a generous sprinkling of whimsy, decided to breathe life back into these long-silent denizens of the natural world.

No longer shall visitors merely gaze upon the unfortunate dodo, whose tale of extinction is typically accompanied by a heavy sigh of lamentation for flights never taken.

Instead, due to the prodigious advances of artificial intelligence, one may now engage in a lively discourse with the very remains of these creatures, as if they were indeed reanimated entities rather than lifeless tokens of curiosity.

Imagine, if you will, the scenario unfold before your very eyes: a wide-eyed child, perhaps, standing before the skeleton of a whale, poised with a smartphone in hand, scanning the conspicuously placed QR code, and summoning the ethereal voice of the ancient leviathan. “Excuse me, ‘Sir Whale,’ might you regale me with tales of your watery escapades?”

Opportunity

The response, facilitated by a sophisticated AI rendering, would be as delightful as it is informative: “Ah, young visitor, you wish to hear of the time I swam beneath the icy expanse of the Antarctic?”

“Was a day much like today, save for a bit more blubber and rather less pomp and circumstance. Also, I swam with the great krill of the Southern Ocean; splendid fellows, though I have been known to partake in a few unfortunate pilfering events!”

Moreover, let us not overlook the opportunity to converse with the unassuming cockroach, an unfortunate creature often dismissed in polite company as an unsightly nuisance.

Imagine, instead, a child asking earnestly: “Tell me, dear Cockroach, do you not feel a tad put out by your notoriety?” To which the cockroach might respond with a plaintive yet dignified retort: “Indeed, young one, it is terribly unfair! After all, I’ve survived nuclear fallout, while humanity has not managed to keep a single dodo from extinction!”

And thus, we find ourselves embroiled in a spirited discourse on the merits—and misfortunes—of survival.

One must also acknowledge the bemused scientist, Jack Ashby, assistant director of the Museum, who understandably finds himself in a state of mild incredulity.

Newfound affection

Ashby might declare with an affable chuckle, “is to engage people with the natural world. One can only wonder whether imparting voices to these once-silent specimens will, in fact, alter the considerably ingrained perceptions visitors hold; perhaps they will leave with a newfound affection for our insect friends—or at the very least—with an understanding that nature’s diversity is best appreciated with a sense of humour!”

To this end, the Museum has thoughtfully equipped each specimen with the means to converse in over 20 languages, scarcely leaving any visitor excluded from the charming dialogues that are now so readily available.

As visitors ponder complex questions about extinction, biodiversity, or the very nature of existence, they might just as easily ask the taxidermied red panda, “What’s your favorite bamboo recipe?”

Much to the child’s surprise, the red panda could retort with a deep, philosophical rumination on the perils of gluten while promoting the merits of a plant-based diet!

It is a curious thing, indeed, contemplating the profound implications of this project and whether it may lead to a reversal of apathy regarding the biodiversity crisis—which plummeted an alarming 69 per cent globally between 1970 and 2018.

Extraordinary intersection

Will speaking with a long-extinct specimen like the dodo inspire visitors to foster a protective sentiment towards their living counterparts? Or, perchance, will it spark a passionate debate on the morality of extinctions past, present, and future—all while fostering an appreciation for the lesser-starred creatures, such as our beleaguered cockroach?

As the dodo, so tragically bereft of flight, might pen in a rather poetic lament: “Oh, to have spread my wings in glee across tempestuous skies! Instead, I am bound to this glass case, longing for the day when my spirit soars, if only through the laughter of those who find humor in my plight.”

In that delightfully enchanting hour, as museum-goers weave through the fantastical tapestry of preserved life, musing over the whims of biology and history, it seems entirely plausible that, through an extraordinary intersection of technology and nature, empathy and understanding shall blossom amongst the bones and pickled specimens. And who knows?

We may just find that a dialogue with the past is precisely the remedy needed to kindle a renewed respect for the living world we occupy today. Now, if only the ancient specimens can keep their histories to themselves… I shudder at the thought of a very animated dodo accusing us of neglect!

Cisco investigates data breach by IntelBroker

  • Threat actor is attempting to sell the stolen data suggests a motive that may limit the sharing of extensive data samples, posing challenges to the verification of authenticity.      

Cisco Systems, a leading player in telecommunications and networking, is currently examining reports of a potential data breach initiated by a threat actor known as “IntelBroker.”

The investigation arises amidst alarming claims that the actor, in collaboration with two associates identified as “EnergyWeaponUser” and “zjj,” accessed a significant repository of Cisco-related files on October 6, 2024.

As articulated by a Cisco spokesperson, the company is committed to thoroughly assessing the situation, highlighting that their investigation remains ongoing.

An air of uncertainty

The claims detailed by IntelBroker encompass a broad spectrum of compromised data, including GitHub and GitLab projects, source code, hard-coded credentials, customer information, certificates, and other proprietary documents.

Such a breach poses serious risks not only to Cisco’s operational integrity but also to the confidentiality of customer data.

The potential for unauthorised access to sensitive corporate systems raises concerns about operational disruptions and further exploitation of valuable information.

While IntelBroker’s post to a hacking forum included samples of the alleged stolen data, it is crucial to note that the specifics of how this data was acquired remain vague.

The absence of detailed methodology leaves an air of uncertainty regarding the breach’s authenticity and scale.

It is also noteworthy that this incident follows a pattern of similar breaches by IntelBroker, who has previously targeted other prominent organisations, including T-Mobile, AMD, and Apple, raising suspicions about a potential link between these incidents.

As of now, the validity of the claims made by the hacker remains unconfirmed. The fact that the threat actor is attempting to sell the stolen data suggests a motive that may limit the sharing of extensive data samples, posing challenges to the verification of authenticity.

Cisco’s proactive approach in investigating these claims underscores the imperative of maintaining robust cybersecurity protocols in the face of evolving threats.