Notes on Indian equities, sectors and economy

Changing equation in Indian IT

Posted by fairval on April 27, 2013

The following 2 graphs show the changing equations in India IT. Infy’s EBITDA margins have slid steadily in recent years. In FY13, TCS matched Infy in EBITDA margins.

EBITDA margins for top 4 Indian IT Cos


The more noteworthy point is the dramatic slide in Infy PE. At 12.5x expected FY14 eps, Infy now has a large discount over TCS (while hcl tech looks similar, it is FY13e, so on FY14 basis there should still be some discount to Infy).

Forward PE






Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: