Infosys Witnesses Better Revenue Growth Compared to TCS


BENGALURU: September didn’t bring good news for the Indian IT industry. Not only did it plummet to a new low, it has also issued a word of caution to the investors. The results also meant that Tata Consultancy Services (TCS) has been found trailing Infosys after the September performance. Investors looking at short term gains are also cautious as the key verticals of banking, financial services, and insurance (BFSI) aren’t showing much growth prospect.

However, for long term investors, this gives a great opportunity to buy stocks at low prices and wait for things to turn normal. Infosys with a closing price of Rs 1,027.4 is best suited to offer better chance for the long term investors. 

September also marked the fifth straight quarter when Infosys has recorded a better year on growth as compared to TCS. Between March 2009 and June 2015, revenue growth of Infosys had been less than that of TCS in each of the quarters. 

In the September 2016 quarter, revenue of Infosys grew 8.2% year-on-year to $2,587 million compared with 5.2% growth posted by TCS with $4,374 million, according to The Economic Times.

Apart from revenue, Infosys beat analysts' estimates of net profit and operating margin for the September quarter, reports the ET. The stock, however, took a tumble on Friday after the company announced major drop in its forecast for the fiscal. The company now expects revenue to grow 8-9 pct, which is much lower than the guidance of 10-12.5 pct growth it projected in July.

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