Riken Mehta
Moneycontrol.com
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.
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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