Firm-specific challenges to hurt Infy; deal pipeline key positive for TCS

Infosys revised its revenue growth as well as margin guidance for FY20 downwards

There is not much to distinguish IT majors TCS and Infosys as far as the revenue growth performance in the March quarter is concerned. The two posted sequential growth of 2.1-2.4 per cent on a constant currency basis. On every other parameter, TCS has outmatched its smaller rival. While growth metrics for Infosys was skewed to a single vertical and it is struggling to get a handle on costs, TCS has been able to manage growth and keep cost inflation under control. Analysts say that strong broad-based growth across business verticals, relatively better margin profile and positive management commentary will