TCS vs Infosys: Who performed well in Q2 earnings? – check details here

On the back of better-than-expected quarterly numbers, the number two Indian IT company Infosys has beaten the number one Tata Consultancy Services. The revenue growth as well as the guidance of the former has outperformed the latter in the Q2 earnings.

Infosys raised its FY22 revenue guidance in constant currency terms between 16.5-17.5 per cent: PTI

On the back of better-than-expected quarterly numbers, the number two Indian IT company Infosys has beaten the number one Tata Consultancy Services. The revenue growth as well as the guidance of the former has outperformed the latter in the Q2 earnings.

TCS on 8th October reported quite positive numbers but were better than the street’s expectations, the company registered the revenue growth in the dollar terms at 2.7 per cent quarter-on-quarter; while Infosys posted a growth of 5.7 per cent on a sequential basis, which was above the street’s expectations.

On the back of strong numbers, the Bengaluru-based IT firm has raised its FY22 revenue guidance in constant currency terms between 16.5-17.5 per cent from 14-15 per cent earlier.

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Similarly, with respect to the size of the deal wins, TCS has reported in its second-quarter results of the financial year 2021-2022, was mere $7.6 billion and $8.1 billion in the last three months. Similarly, Infosys reported $2.15 billion deal wins and $2.6 billion in the last three months.

On the dividend front, Infosys has declared a dividend of Rs 15 per share as final dividend, which is more than double what TCS announced which is Rs 7 per share as an interim dividend.

While both the companies reported a rise in the attrition rate as Infosys’ attrition rate increased to 20.1 per cent from 13.9 per cent, whereas TCS’ attrition rate is quite lower than the Infosys, as it grew to 11.9 per cent from 8.6 per cent in the second quarter of FY22.

Brokerages are bullish on both IT heavyweights. Goldman Sachs maintained a Buy rating for TCS with a price target of Rs 4657 per share and see an upside of 28.5 per cent from the current market price.

TCS shares, a day after its result announcement were traded weak, down over 7 per cent amid disappointing quarterly numbers. On Thursday, the stock fell over 1 per cent to Rs 3608.4 per share on the BSE intraday trade.

Similarly, the global brokerage firm Credit Suisse maintaining an Overweight stance on Infosys has set a price target of Rs 2250 per share, an upside of Rs 31.5 per cent from the current market price. The stock on Thursday has jumped around 4.5 per cent to Rs 1784.05 per share on the BSE intraday.

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