Mid-cap IT firms top larger peers on Ebit front
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.
Net profit for IT firms
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.
