Q2 RESULTS: INFOSYS MEETS EXPECTATIONS; TCS FEELS THE HEAT!

The September quarter results by Infosys and Tata Consultancy Services (TCS) shows that the former's earnings were marginally higher than estimates while the latter's were lesser. Shares of Infosys have outperformed those of TCS by about 22%.

Infosys's revenue is growing by 3.3% in constant currency terms while operating profit margins were at 21.7%. Though Infosys's operating profit growth remains weak at 0.4% year on year, investors are considering the company to be in an investment phase. On the other hand, TCS's margins fell to a nine-quarter low in Q2.

Infosys reported double-digit growth in all of its businesses, barring retail, which grew at 1%. “Business in the retail vertical is closely linked to consumer sentiment, which has been weak lately owing to uncertainties in the global economy," the company was quoted as saying by Mint at a press conference.