TCS VS INFOSYS - June Quarterly Results

On Thursday June 12th  Both Indian IT majors TCS and Infosys announced their Quarterly results. One company has delivered strong set of numbers and the other disappointed the market.TCS has been delivering strong set of numbers for last several quarters, wherein Infosys disappoints time and again. TCS has the largest market cap in Indian IT industry.

Market cap and the valuation of both companies are moving in different direction. One moving towards north and other towards south. TCS consistent delivery of performance makes it as the number one buy in large cap it space.

Sales : 

TCS beat revenue estimates of Rs 14,865 crore with sales of Rs 14,868.7 crore.

Infosys was expected to deliver Rs 9,715.2 crore but fell short by 100 crore . It reported Rs 9,616 crore in sales

Number of clients added :

TCS has added 29 clients and Infosys has added 51 clients

GUIDANCE : 

TCS has confirmed that it will beat the upper end of earnings estimate. Infosys didnt provide any future guidance

EBAIT : TCS:

Earnings before interest, tax, depreciation and amortization margins contracted 50 basis points to 29 per cent from 29.5 per cent in the previous quarter.

Infosys: Ebitda margins, a key measure of profitability, declined 190 basis points sequentially to 28 per cent against estimates of 30 per cent.

Rupee IMPACT

TCS: The impact of the rupee depreciation affected the company's numbers by Rs 93.75 crore.

Infosys: The Bangalore-based firm said it had taken a hit of $13 million (about Rs 72.7 crore at Thursday's rates) in currency fluctuations. It also reported a marginal decline of 0.4 per cent in constant currency terms.

TCS has become the number one performer over last several quarters. If you want invest in IT sector, TCS should be your first choice.

Disclaimer : Check with certified financial expert before making any capital market decisions.