Software giants TCS and Infosys released their earnings of December-quarter. While Tata Consultancy Services (TCS) missed analysts’ estimated profits; Infosys’ numbers disappointed on the net profit and margin front though its revenue and guidance met estimates.
The second-largest IT firm of the country Infosys reported 12.2 percent (quarter-on-quarter) and nearly 30 percent (year-on-year) decline in its net profit during the December 2018 quarter. The revenue of the Bengaluru-based firm, however, grew 3.8 percent (QoQ) and 20.3 percent (YoY) in the December 2018 quarter. Infosys CEO and MD Salil Parekh said that the company has seen double-digit growth in the third quarter on a constant currency basis. He also said that company had another strong quarter in its digital business which gives it confidence of entering into 2019. Infosys has also announced the buyback share plan to boost the investors’ sentiment. It has also announced a special dividend of Rs 4 per share.
Meanwhile, IT bellwether TCS on Thursday posted 2.6 percent (QoQ) and 24.1 percent (YoY) profit growth in the December quarter. "We have had good order closures this quarter, and strong pipeline built up...a strong pipeline and a strong order flow set us up nicely for the new calendar year," managing director and chief executive Rajesh Gopinathan said while announcing the Q3 numbers.
Analysts say that the uptick of revenue of TCS was at par with the expectations but it missed on margins. In case of TCS, the revenue growth of 1.3 percent (QoQ) in the December quarter was the lowest in the past four quarters while Infosys' revenue growth of 3.8 percent (QoQ) was the lowest in the past three quarters.
Tags : #Profits #Missed #Software #Giants #TCS #Infosys