Revenue Growth Analysis: Infosys reported a 1.3% YoY improvement in its consolidated revenue, reaching ₹38,821 crore in Q3 FY24. On a sequential basis, revenue was down by 0.4%. The revenue in constant currency (CC) terms also declined by 1% YoY.
On the other hand, TCS reported consolidated revenue of ₹60,583 crore for the quarter ending in December, marking 4% YoY growth. Sequentially, TCS saw a 1.5% increase in revenue. In constant currency terms (CC), the revenue grew by 1.7% YoY.
Also Read TCS Q3 result: Tepid growth in revenue, profit to dividend announcement – here are 5 key highlights
Key Revenue Segment Performance: Both companies posted a muted performance in their key revenue segments. Infosys saw a 0.72% QoQ increase but a 4% YoY dip in revenue from the financial services segment, reaching ₹10,783 crore in Q3. This segment contributed to 30% of Infosys’ overall revenue during the quarter.
TCS reported a revenue of ₹22,667 crore from the Banking, Financial Services, and Insurance segment, reflecting a marginal QoQ drop of 0.75% but a YoY increase of 2.35%. This segment contributed to 37% of TCS’s total revenue in Q3.
Net Profit Growth: TCS posted a 2.48% QoQ drop in its consolidated net profit at ₹11,097 crore in Q3 FY23. In the preceding quarter (Q2 FY24), it reported a net profit of ₹11,380 crore.
Also Read: Infosys Q3 Earnings: FY24 revenue guidance revised to 1.5-2%; PAT down 7% YoY to ₹6,106 crore
Comparing the year-on-year (YoY) performance, there was a 2% improvement in net profit. In the same quarter a year ago, the company recorded a net profit of ₹10,883 crore.
During the quarter, the company’s net profit was affected by a one-time charge of ₹958 crore, allocated towards the settlement of a legal claim, according to the company’s earnings filing.
Infosys posted a consolidated net profit of ₹6,106 crore, down over 7% from ₹6,586 crore in the year-ago period. On a sequential basis as well, the company’s profit fell 1.7% from ₹6,212 crore in the September 2023 quarter.
Deal Wins: Infosys reported a TCV of $3.2 billion, which is lower than last quarter’s record of $7.7 billion. In parallel, TCS reported a TCV of $8.1 billion, marking a decline from the $11.2 billion reported in the preceding quarter. Notably, its TCV falls below the quarterly guidance range of $9–10 billion.
Also Read: TCS Q3FY24 Result: Revenue grows 4% YoY, PAT rises 2% YoY
Workforce Comparison: In Q3, both companies experienced a decline in their headcounts. TCS witnessed a net decrease of 5,680 employees in Q3, bringing its workforce to 603,305 as of December 31st.
Similarly, Infosys reported a reduction of 6,101 employees for the quarter ending in December, resulting in a workforce of 322,663 at the close of the third quarter.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 11 Jan 2024, 07:27 PM IST