Infosys vs TCS: How the numbers stack up head-to-head

Tata Consultancy Services  (TCS), the country’s largest software exporter, once again came out on top compared to its closest rival Infosys, which disappointed the street with a lower-than-expected quarterly profit and a sharp cut in its full year US dollar revenue guidance.

TCS first quarter net profit rose 38% year-on-year (14.6% sequentially) to Rs 3,280.5 crore, while revenue was also up 38% (up 12% quarter-on-quarter) to Rs 14,869 crore.

Bangalore-based Infosys had reported a lower-than-expected 33% year-on-year (down 1% sequentially) rise in first quarter net profit at Rs 2,289 crore, while revenue was barely in-line at Rs 9,616 crore, up 29% (up 9% quarter-on-quarter).

Infosys  had flagged off some pricing pressures, slower IT spends and currency volatility for its poor performance.

Although TCS said that unprecedented currency volatility continued to be a challenge in the short-term, but global demand for IT services continues to be good.

Here’s a head-to-head comparison of the two IT majors:

TCS Infosys
Revenue Growth (USD)
YoY  13.10% 4.80%
QoQ  3.00% -1.10%
Revenue Growth (INR)
YoY  37.70% 28.50%
QoQ  12.10% 8.60%
PAT Growth (INR)
YoY  37.40% 32.90%
QoQ  14.60% -1.20%
Operating margins  27.50% 28.00%
Active Clients 1032 711
Client addition in Q1FY13 29 51
Growth in key business verticals (QoQ)
BFSI 14.10% -1.10%
Telecom 15.30% -1.10%
Retail 17.50% 5.80%
Employee addition 13831 9236
Utilisation Rate 72% 67%
Attrition rate 11% 15%
Currency Average Rate 54.5 54.83


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