Loom­ing US Penalty, Slow­ing Growth Cast Shadow Over TCS

The Economic Times - - Smart - In­cre­men­tal Rev­enue

TCS IN­FOSYS com­pany’s growth has de­cel­er­ated com­pared to its peer In­fosys for the first time since FY10. TCS rev­enue grew 7.1% in FY16 slower than In­fosys’ 9.1% growth.

Dur­ing the five quar­ters to March 2016, in­cre­men­tal rev­enue of TCS nearly halved to $1,090 mil­lion whereas it nearly dou­bled for In­fosys to $790 mil­lion on 12-month trail­ing ba­sis.

TCS added three clients with $100 mil­lion deal size each and eight clients hav­ing at least $50 mil­lion of billing each in the quar­ter. In­vestors would keenly ob­serve if this can im­prove rev­enue growth as rev­enue from its UK unit may stay flat.

TCS­s­tock­has­gained4%in­oneyear ver­sus 16% jump in In­fosys. The di­ver­gence is ex­pected to per­sist.

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