TCS, the largest of the India-centric services players, widened the profitability gap with archrival Infosys last quarter (to 31st Dec. 2012) reporting operating margins at 27.3%, well over a point higher than Infosys (see Infosys holds its own) though almost 2 points lower than it achieved the year prior. TCS grew faster too on a yoy basis, at 14% to $2.95bn. However sequential growth, at 3.3%, was slower than Infosys, even excluding the contribution from Lodestone (see Infosys buys ‘Swiss Axon’).
Based on our preliminary estimates, it looks like TCS UK closed the calendar year with revenues approaching £1.2bn, over 25% higher yoy – all organic. TCS could even beat that for its FY ending in March if it grows at the same pace that Infosys is forecasting during this quarter. We doubt any other services player in the UK market – no matter from where – will come close. Of course, we’ll have our usual end-of-year round-up of the UK performance of the India-centric players in the next edition of OffshoreViews.