INSUBCONTINENT EXCLUSIVE:
With quarterly results out of their way, the big question for Infosys and TCS is which can hold investor attention better
TCS on Thursday reported a 5.71 per cent sequential rise in consolidated net profit at Rs 6,904 crore for January-March
Infosys last week posted a 28.2 per cent drop in quarterly net profit at Rs 3,690 crore.
Brokerages remained upbeat on both the IT firms,
Jefferies said best of positives seem to be priced in the stock
across all industry verticals and large transformational deal wins have made this one of our best fourth quarters in recent years
pipeline position TCS very well in the new fiscal, Chief Operating Officer and ED N Ganapathy Subramaniam added.
Digital revenue for TCS
numbers in Q4 FY18, with a dollar revenue growth of 3.9 per cent qoq
EBIT margins improved 22 basis points qoq despite higher variable payouts
Digital segment delivers robust performance, making a higher contribution to revenue compared with previous quarters
We are hopeful of Infosys returning to double-digit dollar revenue growth trajectory in FY19, with the targeted margin band of 26-28 per
for FY19 may be perceived negatively by the market
The Bengaluru-based company has lowered EBIT margin guidance for FY19 to 22-24 per cent from 23-25 per cent for the previous financial year
Stock of Infosys was 2 per cent up at Rs 1,156 at around 9.40 am.
IDFC Securities termed Infosys valuations as reasonable
It has retained a positive view on Infosys as it believes that execution-focussed leadership should drive convergence of growth with the
According to the brokerage, Infy's revenue growth guidance of 6-8 per cent signals acceleration in growth
"Strategic priorities have caused Infosys to cut margin guidance band, which is disappointing, but necessary to build muscles in digital
Because of the margin reset, the brokerage has cut FY19-FY20 earnings estimates by 1.1-1.4 per cent," it added.
However, it remains positive
on Infosys as key revenue metrics are "comforting"
Kotak also said Infosys valuations at 14.7 times FY20 estimated earnings are attractive.
Infy's revenue from operations came in at Rs
18,083 crore for January-March as against Rs 17,794 crore in the December quarter
TCS reported 3.78 per cent rise in net profit at Rs 32,075 in Q4 FY18 over Rs 30,904 crore in the December quarter.
