Mid-cap IT firms top larger peers on profit front

Leaving A Mark

- AYANTI BERA

INDIA'S MID-TIER IT services firms posted a stronger performance in Q1, outshining their large-cap counterparts on key profitability metrics even as the broader IT sector continues to grapple with weak global demand and sluggish discretionary tech spending.

Among the large-cap IT firms -- Tata Consultancy Services (TCS), Infosys, HCLTech, and Wipro -- only TCS managed to grow its net profit sequentially, posting a 4.4% quarter-on-quarter growth, boosted by one-off income tax gains and reduced expenses related to the winding down of a large transformation project for BSNL.