Indian IT firms have missed the bus as far as AI is concerned, says Sudeep Bandyopadhyay

The Q2 earnings session is largely over and its seems it is still premature to ascertain the impact of big reforms like GST revision, the initial signs on India Inc's results. Expectations from Q2 were subdued with heavy monsoon and a lot of other challenges in the global market as well as domestic. In a conversation with Business Today, Sudeep Bandyopadhyay, Group Chairman of Indy Trade Capital decodes the earnings sectorwise and gauges the impact of various factors on the quarterly numbers. 

On the numbers of oil and gas sector, Bandyopadhyay said they were pretty good as low crude oil prices and the GRM improvement helped the companies.

The results were also not impacted by any major challenges as far as inventory also is concerned.

Elaborating on more opportunities after the Q2 earnings, Bandyopadhyay said that in US the scenario is getting better. He was surprised to see pickup in US business as well as South American business for many of these companies.
But he prefers to focus on domestic business.

On the Indian IT sector, he feels that the Indian companies have missed the bus as far as AI is concerned to a great extent. 

"They are struggling in terms of valuation and in terms of business as well in US," said Bandyopadhyay adding that their margins also will be under pressure.

"AI has been a big, big influence on the entire overall technology space and we get to see it getting, you know, in its full form, full-blown form in US markets where the AI-related stocks command humongous valuation. With AI deployment becoming the most important, you know, component of IT projects going forward and Indian IT companies not having any proprietary AI tools, I think, will be at a disadvantage vis-a-vis some of the global peers and their margins will suffer," he added.