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TCS Vs Infosys Vs Wipro: IT Sector Competition | Invest Yadnya Stock Article

TCS vs Infosys vs Wipro Q3FY21 Results Analysis

Published on 15 January 2021 Views 62 Comments 0

Introduction 

Recently three IT majors -TCS, Infosys and Wipro came out with their quarterly results for Q3FY21. Let us do a comparative analysis of these companies based on 5 parameters – Revenue Mix, Financials, Client Parameters, Employee Metrics and Valuation. 

TCS vs Infosys vs Wipro 

Revenue highlights 

  • As seen Infosys has posted highest growth on YoY basis and sequentially. 
TCS vs Infosys vs Wipro Revenue Highlights 

Profitability Highlights 

  • In terms of operating profit growth, Infosys leads the pack , followed by Wipro and TCS.
  • However, TCS has higher operating profit margins as compared to Infosys and Wipro. Overall there is an healthy operating profit margin expansion in three companies.
  • In terms of profitability, Wipro posted highest YoY growth of 20.8% followed by Infosys and TCS.
  • Analogous to healthy operating profit margins, TCS leads with highest net profit margins as well.  
TCS vs Infosys vs Wipro Profitability Highlights 

Cash-flow metrics  

  • As seen , all the companies have very strong operating and free cashflow generation.

TCS vs Infosys vs Wipro Cashflow 
Revenue Mix 

  • Geography wise
    • As seen, Infosys has higher exposure to America as compared to TCS and Wipro
    • Among TCS and Infosys, the former derives larger portion of revenues from India as compared to the latter.  

TCS vs Infosys vs Wipro Revenue Mix
  • Segment wise
    • BFSI vertical contributes maximum revenue to these three IT giants, followed by Retail, Life Sciences and Healthcare, Manufacturing, etc.  
TCS vs Infosys vs Wipro Segment revenue mix 

Client Parameters 

  • As seen, here TCS has highest number of clients in all the categories. 
TCS vs Infosys vs Wipro Client Parameters  
  • In terms of recent deal wins, Infosys has secured highest deal wins with total contract value to the tune of $7.13Bn.
  • TCS again leads in terms of number of active clients (~2,500) as compared to Wipro and Infosys. 

TCS vs Infosys vs Wipro Client Concentration 

Employee Metrics 

  • TCS has added highest number of employees in Q3 as compared to Infosys and Wipro.
  • Wipro has highest LTM Attrition followed by Infosys and TCS.  
TCS vs Infosys vs Wipro Employee Metrics

Valuation

  • As seen all IT companies are trading at premium valuations of 50%-60% over historical valuations.
  • All the IT companies in India as well as globally are trading at quite high valuations which is somewhat alarming. Investors should be cautious before making any investment in these companies.       
TCS vs Infosys vs Wipro Valuation   

Indian IT Companies Review: IT Companies Analysis

TCS, Infosys & Wipro are leading industry players in the Indian IT Industry. This video offers a detailed competition analysis of these Indian IT companies.

The competition analysis is conducted based on 5 major parameters: Financials, Revenue Mix, Demand Highlights, Employee Metrics & Valuation. Each parameter is thoroughly discussed & comparisons are made among the IT companies, both annually & quarterly. A detailed overview of the IT sector competition is offered, catering to Infosys Vs Wipro, Wipro Vs TCS & TCS Vs Infosys. The comparisons are made based on revenue, profitability, cash flows etc. The performance of each company is studied based on these parameters.

Wipro Vs Infosys Vs TCS: A Detailed IT Sector Stock Review

Overall, a sturdy performance in the IT sector can be observed due to the companies’ earning visibility & cost-cutting measures. You can find the recent financials, stock charts, along with TCS Vs Infosys Vs Wipro share price, on the stock-o-meter feature of the website. Further, you can find the revenue mix figures with segment-wise diversification for each IT sector company. 

The third parameter, which is client demand highlights, is analysed. The maximum clients’ statistics, the total contract value of deals, & the active clients are studied for all three companies. This provides an overview of the comparative analysis of Infosys and Wipro and comparative analysis of Infosys and TCS. The client contributions to revenue are also thoroughly reviewed. Moreover, the employee metrics figures are also studied.

Make A Viable Investment Decision With Comparative Analysis: TCS Or Infosys Or Wipro 

The investors will get a thorough competition analysis of TCS, Infosys & Wipro. The IT companies are analysed & evaluated based on 5 significant parameters. The performance of each stock is evaluated. The investors will get insights into the companies’ financials, employee metrics, demand highlights & many more. After a thorough study of these major categories, the investor will be able to analyse each stock effectively. Further, the investors will get a detailed valuation of these Indian IT sector companies, whereby the figures of market price, current & historical PE ratio, etc. The investors can incur that the overall IT sector is trading at a premium valuation, which will force them to be alert & cautious while making investments!

All in all, this video offers a detailed analysis of TCS Vs Wipro Vs Infosys share. With all the available data & financials, the investors will make a viable investment decision.

Invest Yadnya’s Other Resources For Detailed Competition Analysis

Our website offers multiple resources on the Indian IT sector. You can check out our stock articles on the IT sector & IT companies. Our stock articles include IT Sector Quantitative Analysis on 19 Parameters, TCS vs Infosys vs Wipro Q3FY21 Results Analysis, TCS vs Infosys Stock Comparison & many more!

Make all your investment decisions with us, as we offer quality financial advice. For more of such quality content, check out Invest Yadnya.

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