Over the last few years, the market capitalization gap between Infosys and TCS has widened. TCS’ market cap is now almost 2.62 times more than its nearest Indian competitor, Infosys.

  • TCS Market Cap – Rs. 853,855.14 Cr. (On 24th June 2019)
  • Infosys Market Cap – Rs. 325,167.23 Cr. (On 24th June 2019)

In March 2009, TCS was 1.42 times smaller than Infosys in terms of market value. TCS’ valuation is now more than the market value of Infosys, Wipro, HCL Tech & Tech Mahindra, combined.

Company Name Price (Rs.) Market Cap. (Rs. Cr.)
TCS 2,275.50 853,855.14
Infosys 745.5 325,167.23
Wipro 283.9 171,343.86
HCL Tech 1,077.90 146,193.30
Tech Mahindra 728.25 71,691.56

Price as on 24th June 2019.

TCS is now trading at a premium to Infosys due to better revenue growth and margin profile (TCS currently trades at a 22% premium to Infosys). The revenue gap between both the companies, which stood at around Rs. 31,676.36 Cr. in FY15, has now become Rs. 63,788.00 Cr. at the end of FY19.

A combination of management issues at the top, impacting revenue growth, inferior operational efficiency and pricing pressure has led to the steady reduction in Infosys’ margins over the period of time.

Infosys and TCS Share Price Performance

Infy-share-price

Infosys and TCS – Comparison

Infosys TCS
Geographical Breakup – 61.2% of the overall revenue of the Company comes from the U.S., followed by 24% from Europe, 2.3% from India, and 12.5% from the Rest of the World. Geographical Breakup – 53% of the overall revenue of the Company comes from the U.S., followed by 27.7% from Europe, 6.4% from India, and 12.2% from the Rest of the World.

Infosys and TCS Financial Performance

Particulars FY15 FY16 FY17 FY18 FY19
INFY Revenue (In Rs. Cr.) 53,319.00 62,441.00 68,484.00 70,522.00 82,675.00
Growth 17.11% 9.68% 2.98% 17.23%
TCS Revenue (In Rs. Cr.) 94,648.41 108,646.00 117,966.00 123,104.00 146,463.00
Growth 14.79% 8.58% 4.36% 18.98%
INFY EBIT (In Rs. Cr.) 13,854.00 15,620.00 16,901.00 17,148.00 18,159.00
EBIT Margin 25.98% 25.02% 24.68% 24.32% 21.96%
TCS EBIT (In Rs. Cr.) 22,683.02 28,789.00 30,324.00 30,502.00 37,450.00
EBIT Margin 23.97% 26.50% 25.71% 24.78% 25.57%
INFY PAT (In Rs. Cr.) 12,372.00 13,489.00 14,353.00 16,029.00 15,404.00
PAT Margin 23.20% 21.60% 20.96% 22.73% 18.63%
TCS PAT (In Rs. Cr.) 19,852.18 24,270.00 26,289.00 25,826.00 31,472.00
PAT Margin 20.97% 22.34% 22.29% 20.98% 21.49%
INFY EPS (In Rs.) 28.42 30.98 32.97 35.50 35.38
EPS Growth Rate 9% 6% 8% -0.3%
TCS EPS (In Rs.) 52.91 64.68 70.06 68.83 83.87
EPS Growth Rate 22% 8% -2% 21.9%
Return Ratios
INFY ROCE 27.31% 25.30% 24.50% 26.41% 27.93%
TCS ROCE 43.57% 40.20% 34.91% 35.56% 41.64%
INFY ROE 34.07% 30.36% 28.97% 31.33% 32.40%
INFY ROE 39.21% 34.15% 30.49% 30.34% 35.19%