Signage for Tata Consultancy Services Ltd. displayed atop a building in the Synergy Park campus in Hyderabad, India. (Photographer: Namas Bhojani/Bloomberg)

In Charts: TCS Vs Infosys

The momentum due to large deal wins continued at India’s largest information technology companies by market capitalisation—Tata Consultancy Services Ltd. and Infosys Ltd.—aiding their top line growth in the quarter ended December.

Infosys, India’s second-largest information technology company, stayed ahead of TCS on most parameters, barring operating margin.

There was a common factor: operating margin of both the companies contracted partially, indicating rise in people costs—onshore and offshore.

Here’s how TCS and Infosys fared in the December-ended quarter:

Revenue Growth

Sequential revenue growth in constant currency for Infosys and TCS was steady and in line with consensus estimates, but Infosys grew at a higher rate.

Operating Margin

Both the companies were affected by rising costs at offshore and onshore locations due to supply constraints. While TCS was hit by cross-currency headwinds, Infosys was more affected due to depreciation provided for assets on sale, continued investments, acquisitions and higher compensation.

Key Vertical–Financial Services

The recovery of TCS and Infosys is evident due to the performance of this key vertical, which contributes almost a third of revenues to both the firms. Infosys edges past TCS on this count.

Key Geography–North America

Infosys pipped TCS in terms of revenue generated in North America—the key market for both the companies.

Digital Services Revenues

The digital services segment of both the IT firms grew over last year, TCS registered higher growth even as the revenue contribution to their respective companies was nearly the same.