Infy margins at all-time low, HCL Techs at all-time high

The opinion on the street is unanimous for IT sector – Infosys is an underperformer, HCL Tech a dark horse and TCS a consistent outperformer.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead GrowMyMoney IThe Winning Leap SME Special
Moneycontrol

Home » News » Earnings » Result Analysis

Apr 17, 2013, 06.56 PM | Source: Moneycontrol.com

Infy margins at all-time low, HCL Tech's at all-time high

The opinion on the street is unanimous for IT sector – Infosys is an underperformer, HCL Tech a dark horse and TCS a consistent outperformer.

Like this story, share it with millions of investors on M3

Infy margins at all-time low, HCL Techs at all-time high

The opinion on the street is unanimous for IT sector – Infosys is an underperformer, HCL Tech a dark horse and TCS a consistent outperformer.

Post Your Comments

Share Cancel

Riken Mehta
moneycontrol.com

The opinion on the street is unanimous for IT sector Infosys is an underperformer, HCL Technologies a dark horse and TCS a consistent outperformer. This has been the view for several quarters now. Infosys’s problems are company specific and clearly the strategy of preserving margins at the cost of revenue growth has backfired.

The EBIDTA margins of Infosys in Q4 slumped to an all-time low of 23.6 percent from 31.07 percent in September 2009, best in the industry at that time. In the same period (Sept 2009 Mar 2013), HCL Tech’s margins improved by 570 basis points to 21.33 percent, close to its all-time high margins of 22.19 percent in the previous quarter.

Infosys has also lost its market share to rivals like HCLTech, TCS and Cognizant. It has been criticized for not utilizing its huge pile of cash reserves for acquisitions compared to HCL Tech and TCS who have acquired several companies in last few years. The margins of Infosys will further contract as the company is now focusing on stepping up revenues but analysts feel it’s a little too late.

Tags  Infosys
Buy, Hold, Sell ? Hear it first on M3
Infy margins at all-time low, HCL Techs at all-time high

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login