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Infosys Beats TCS’ Operating Margin For First Time In Five Quarters

In a seasonally strong quarter, Tata Consultancy Services Ltd. and Infosys Ltd., two of India's largest information technology companies, continue to show muted sequential growth.

But when pegged against each other, which of the two have done better in the first quarter of financial year 2017-18?

Dollar Revenue Growth

Infosys scores against its larger peer with a 3.2 percent U.S. dollar revenue growth, compared to 3.1 percent by TCS.

Score: TCS 0, Infosys 1

Operating Margin

For the first time in five quarters, Infosys managed to beat TCS on the operating margin front—that too by a whole 100 basis points.

Score TCS 0, Infosys 2

Performance In Key Verticals

While Infosys showed better growth in banking and financial services and insurance vertical, TCS did better in manufacturing and retail segments. It’s a draw.

Score: TCS 0, Infosys 2


Infosys employee attrition rate remained higher than that of TCS but it reduced by 390 basis points quarter-on-quarter to 21 percent. The Tata group company’s employee attrition rate increased 110 basis points to 11.6 percent. Finally, a win for TCS.

Score: TCS 1, Infosys 2


Infosys’ shares remain cheaper, trading at a one-year forward price to earnings (PE) ratio of 15.3 times against TCS that trades at 17.4 times, according to the Bloomberg consensus. Infosys scores.

Score TCS 1, Infosys 3