Mid-size IT firms to remain ahead of larger rivals in Q2

Coforge is expected to top the charts on the back of strong deal wins in the travel vertical

- Jas Bardia

India's mid-sized information technology (IT) services firms, those with annual revenues between $1 billion and $5 billion, are expected to outperform their larger peers for a third consecutive quarter, buoyed by strong deal wins and business captured from bigger rivals.

Companies, including LTIMindtree Ltd, Coforge Ltd, Mphasis Ltd, Persistent Systems Ltd and Hexaware Technologies Ltd, are likely to report a sequential revenue growth between 1.2% and 6.6% in the July-September period, according to at least six brokerages. Among these firms, Coforge may top the charts on the back of strong deal wins in travel space and quick ramp-up of previous wins. The company's $120 million annual deal with Texas-based travel technology firm Sabre, its largest to date, has helped sustain growth.

Ninth largest, Persistent, comes a close second and is expected to post a 4.2% sequential growth at best, with experts attributing this to increased business from banks and healthcare centres. In contrast, larger peers, including Tata Consultancy Services Ltd, Infosys Ltd, HCL Technologies Ltd, Wipro Ltd and Tech Mahindra Ltd, are expected to grow no more than 2.8%. Of these, the second-largest, Infosys, is expected to perform the best of the pack for the second straight quarter, thanks to deal ramp-ups and increased funding from banks.