Looming US Penalty, Slowing Growth Cast Shadow Over TCS
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.