Operating profit margins of TCS, Infosys decline to two-decade low

TCS & Infosys report average Ebidta margin of 27.6%, down from 30.1% last year

The FY22 fourth-quarter results of Tata Consultancy Services (TCS) and Infosys suggest the bump-up in IT companies’ profit margin after the pandemic set in is coming to an end.

The combined EBITDA (earnings before interest, tax, depreciation, and amortisation) margin of TCS and Infosys in the quarter was the lowest since TCS was listed in 2004 except the lockdown quarter (Q1FY21) and Q4FY15, when TCS had given a special one-time bonus to its employees.

The two companies reported an Ebidta margin of 27.6 per cent, on average, in Q4FY22, down from 30.1 per cent a year ago as operating expenses