Particulars  Per share ratios  AVERAGE

Basic EPS (Rs.) Mar-19 Mar-18 Mar-17  

TCS 83 134 133 116.6667
Infosys 35 71 63 56.33333
Diluted Eps (Rs.)      
TCS 83 134 133 116.6667
Infosys 35 71 63 56.33333
Book Value [Excl. Reval      
Reserve]/Share (Rs.)
TCS 240 448 439 375.6667
Infosys 150 298 301 249.6667
       
Dividend/Share (Rs.)        
TCS 30 50 47 42.33333
Infosys 22 44 26 30.66667

Earning per share is the same as any profitability or market prospect ratio. Higher earnings per share is
always better than a lower ratio because this means the company is more profitable and the company has
more profits to distribute to its shareholders.

From above ratio of TCS and Infosys we can analyse that TCS is having higher rate of averages in all
four per share ratio. So we can determined that TCS is having better profitability as compared to Infosys.

PARTICULARS MARGINAL RATIOS AVERAGE

Gross Profit Margin (%) Mar-19 Mar-18 Mar-17

TCS 30 29 31 30
Infosys 28 31 32 30.33333
Operating Margin (%)
TCS 29 28 29 28.66667
Infosys 25 29 29 27.66667
Net Profit Margin (%)
TCS 22 21 22 21.66667
Infosys 19 23 21 21
  Generally, the higher the gross profit margin the better. A high gross profit margin means that the
company did well in managing its cost of sales. It also shows that the company has more to cover
for operating, financing, and other costs. The gross profit margin may be improved by increasing
sales price or decreasing cost of sales. However, such measures may have negative effects such
as decrease in sales volume due to increased prices, or lower product quality as a result of cutting
costs.gross profit margin should be relatively stable except when there is significant change to
the company’s business model.
In above case both companies having almost equal gross profit margin ratio, so the cost f sale is
almost same.

 An operating margin is an important measurement of how much profit a company makes after
deducting for variable costs of production, such as raw materials or wages. We can see that in
above average of three year, there is 1 % difference in both companies operating operating
margin ratio, TCS is having higher sales and efficiency of the company.
 Generally, a net profit margin in excess of 10% is considered excellent, so above ratios and
calculation we can see that company is able to effectively control its costs and/or provide goods
or services at a price significantly higher than its costs.

PARTICULAR Return Ratios AVERAGE

Return on Networth / Equity (%) Mar-19 Mar-18 Mar-17

TCS 35 30 30 31.66667
INFOSYS 24 25 21 23.33333
ROCE (%)      
TCS 45 39 39 41
INFOSYS 32 31 29 30.66667
Return On Assets (%)      
TCS 27 24 25 25.33333
INFOSYS 18 20 17 18.33333

 Return on equity measures how efficiently a firm can use the money from shareholders to
generate profits and grow the company. We can see that ROE in 2017 and 2018 is similar,
whereas its increase in 2019 by 5% it means so return on equity increases If we see the average
of both companies TCS is having more return on equity as compared to Infosys.
 ROCE is a good baseline measure of a company's performance. ROCE is a financial ratio that
shows if a company is doing a good job of generating profits from its capital. From above
calculation we can see that TCS is having higher rate of capital employed and efficiently
company generate profit as compared to infosys.
 The return on assets ratio measures how effectively a company can earn a return on its investment
in assets. In other words, ROA shows how efficiently a company can convert the money used to
purchase assets into net income or profits. Bothe the companies having more than 5% average
ROA which is considered good for growth and to achieve profit.
 PARTICULAR Liquidity Ratios AVERAGE

Current Ratio (X) Mar-19 Mar-18 Mar-17

TCS 4 5 6 5
INFOSYS 3 4 4 3.666667
Quick Ratio (X)      
TCS 4 5 6 5
INFOSYS 3 4 4 3.666667

 Value of current ratio of TCS is higher than Infosys, it means company may not be efficiently
using its current assets, specifically cash, or its short-term financing options. A high current
ratio can be a sign of problems in managing working capital. Current ratio should be between 1.2
to 2.
 The quick ratio is considered a more conservative measure than the current ratio, which includes
all current assets as coverage for current liabilities. The higher the ratio result, the better a
company's liquidity and financial health; the lower the ratio, the more likely the company will
struggle with paying debts

PARTICULAR Leverage Ratios AVERAGE

Debt to Equity (x) Mar-19 Mar-18 Mar-17

TCS 0 0 0 0
INFOSYS 0 0 0 0
Interest Coverage Ratios      
(%)
TCS 211 657 1079.53 649.1767
INFOSYS - - -

 A figure of 0.5 or less is ideal. In other words, no more than half of the company's assets should
be financed by debt. So above both the companies are having 0 debt equity ratio which is
considered as good.
 ICR determines whether it can pay off its debts.
  If a company has a low-interest coverage ratio, there's a greater chance the company won't be able
to service its debt, putting it at risk of bankruptcy.
 A high ratio indicates there are enough profits available to service the debt, but it may also mean
the company is not using its debt properly.
 From above we can considered that TCS is having enough profit available to service , if the debt
incurred.

 PARTICULAR Turnover Ratios  AVERAGE

Asset Turnover Ratio (%) Mar-19 Mar-18 Mar-17 43160
TCS 127 116 114 119
INFOSYS 98 88 82 89.33333
Inventory Turnover Ratio      
(X)
TCS 14646.3 4734.77 5617.43 8332.833
INFOSYS 0 0 0 0

 A turnover ratio represents the amount of assets or liabilities that a company replaces in relation to its
sales.
 TCS is having higher efficiency to generate the profit from asset as compared to Infosys.
 high inventory turnover typically means a company is selling goods quickly, and there is considerable
demand for their products. Low inventory turnover, on the other hand, would likely indicate weaker
sales and declining demand for a company's products

PARTICULAR Valuation Ratios AVERAGE

P/E (x) Mar-19 Mar-18 Mar-17

TCS 4 2 2 2.666667
INFOSYS 9 4 5 6
P/B (x)      
TCS 8 6 6 6.666667
INFOSYS 5 4 3 4
EV/EBITDA (x)      
TCS 17 15 13 15
INFOSYS 13 10 10 11
P/S (x)      
TCS 5 4 4 4.333333
INFOSYS 4 4 3 3.666667
 A valuation ratio shows the relationship between the market value of a company or its equity and
some fundamental financial metric.
 From above data we can determined that Infosys is having higher P/E ratio than TCS , that mean
investors are willing to pay a higher share price in TCS  today because of growth expectations in the
future.
 P/B should be less than 1. If P/B is less than one, it normally tells investors that either the market
believes the asset value is overstated, or the company is faring very badly in terms of returns on its
assets. P/B ratio indicates the inherent value of a company.
 A low EBITDA margin indicates that a business has profitability problems as well as issues with cash
flow. On the other hand, a relatively high EBITDA margin means that the business earnings are
stable.
 The P/S ratio is an investment valuation ratio that shows a company's market capitalization divided
by
the
PARTICULAR Growth Ratios AVERAGE

3 Yr CAGR Sales (%) Mar-19 Mar-18 Mar-17 43160

TCS 15 6 12 11
INFOSYS 11 7 12 10
3 Yr CAGR Net Profit (%)      
TCS 13 5 11 9.666667
INFOSYS 3 13 7 7.666667
company's sales for the previous 12 months. A ratio of less than 1 indicates that investors are paying
less than $1 per $1 of the company's sales. Any number higher than 4 is commonly
considered unfavorable.

 5-10% CAGR sales is considered as good for large cap companies. So from above we can analysed
that both the companies having chances of increasing product and services in near future
 So from above growth ratio we can analyse that TCS's performance is better than Infosys.