Q2FY13 Results: How do Infosys, TCS, HCL Tech’s numbers stack up?

Riken Mehta
Moneycontrol.com


As the second quarter earnings season plays out, it is becoming increasingly evident that  Infosys  has a lot of work to do before it can regain its position as bellwether of the IT services sector. Infy’s September quarter numbers met market expectations, but the company lowered full year guidance as efforts to revamp the business model is taking time to show results. 


 As if rubbing salt in its wounds, TCS  has come up with yet another set of strong quarterly numbers, which makes it the clear favourite for investors looking to buy frontline IT shares. But TCS can’t rest easy either; there is competition from HCL Tech which has been steadily improving its performance over the last few quarters.


HCL Tech’s September quarter numbers beat analyst estimates by a comfortable margin. The catalysts for this healthy performance were several deal wins and business growth across its key geographies of US and Europe. 


Here is a look at the key operating numbers of the three companies during the quarter gone by.
The change in the outlook also reflected in the posture of the management of these companies. 
 
Infosys management painted a dull picture by slashing its earnings forecast. On the flip side, TCS management remained optimistic and signalled return of discretionary spending healthy for IT industry. HCL Tech, the fourth largest IT player beats street expectations by topping industry average growth. Vineet Nayar sees significant opportunities in next 6 months. Wipro, third largest IT player is yet to announce its results.


On the operational front, it is crystal clear now that TCS holds the numero uno position with HCL Tech on the second spot. Infosys has slipped to third spot on the podium.


Particulars TCS Infosys HCL Tech
Revenue Growth (USD)
YoY  13.00% 2.90% 11.10%
QoQ  4.60% 2.60% 3.20%
Revenue Growth (INR)
YoY  34.30% 21.70% 31.00%
QoQ  5.10% 2.50% 2.90%
PAT Growth (INR)
YoY  44.00% 24.30% 78.10%
QoQ  7.10% 3.50% 3.60%
Operating margins  26.80% 26.34% 22.20%
Active Clients 1032 715 536
Client addition in Q2FY13 41 39 38
Growth in key business verticals (QoQ)
BFSI 4.70% 0.60% 3.60%
Telecom 5.20% 4.10%
Retail 7.00% 3.90% 10.20%
Employee addition 18654 10420
Attrition rate 10.20% 15% 14%
Currency Average Rate 54.76 54.85 54.69

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