Throughout this course you have seen how reading and understanding a company’s financial statements, and analyzing...

Throughout this course you have seen how reading and understanding a company’s financial statements, and analyzing ratios based on the reported numbers, can provide valuable information about the financial condition of the company. For this discussion, please look at a resource – either an online database or financial site, industry Information, or an annual report or 10-K form for any company. Find an interesting fact or comparison to discuss. You may browse until you find something interesting, or look up something specific about a particular company or industry. Discuss how the information you found enhances your understanding of the company or industry beyond the reported numbers in the financial statements.

Expert Solution

HEAD-TO-HEAD
TCS	Infosys
DESCRIPTION	Jun-19	Jun-18	Var%	Jun-19	Jun-18	Var%
Net Sales	38172.00	34261.00	11.42	21803.00	19128.00	13.98
PBIDT (Excl OI)	10037.00	9071.00	10.65	5152.00	4703.00	9.55
Other Income	1675.00	1225.00	36.73	736.00	726.00	1.38
Operating Profit	11712.00	10296.00	13.75	5888.00	5429.00	8.45
Profit After Tax	8153.00	7362.00	10.74	3802.00	3612.00	5.26
Net Profit (after Extrodinary Items)	8153.00	7362.00	10.74	3802.00	3612.00	5.26
Basic EPS before Extraordinary Items	21.67	19.17	13.04	8.83	8.31	6.26
PBIDTM% (Excl OI)	26.29	26.48	-0.69	23.63	24.59	-3.89
PBIDTM%	30.68	30.05	2.10	27.01	28.38	-4.85
PBDTM%	30.01	30.00	0.02	26.82	28.38	-5.50
PBTM%	27.87	28.56	-2.43	23.70	26.10	-9.21
PATM%	21.36	21.49	-0.60	17.44	18.88	-7.65
Infosys and Tata Consultancy Services announced their respective June quarter results for the financial year 2019 – 20 (Q1FY20) last week. While Infosys registered 5.26 per cent rise in its Q1FY20 net profit at Rs 3,802 crore, TCS saw an uptick of 10.74 per cent in its profit after tax (PAT) to Rs 8,153 crore. An uptick in demand for its digital services, apart from a momentum in the large deal space, prompted the Infosys to raise its FY20 revenue guidance to 8.5-10 per cent from 7.5-9.5 per cent as guided earlier. The company now plans to return 85 per cent of the free cash flows (FCF) in the form of buybacks or dividends on a five-year cumulative basis (70 per cent earlier). Post the results, most brokerages have revised their price targets for both these stocks. For TCS, The number of ‘buy’ ratings for the stock has reduced from 27 to 23, while ‘sell’ calls have increased from 7 to 9. The average 12-month price target has also seen a slight reduction. READ MORE HERE On Monday, Infosys reacted to the Q1FY20 results announced post market hours on Friday, with the stock rising over 7 per cent to close at Rs 779 levels on the National Stock Exchange (NSE).

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