Deal wins, digital demand put IT companies back on growth track

Margins too surprised positively on higher offshoring and utilisation

Large deal wins, a sharp expansion in margins, and expectations of a return to double-digit growth were the key themes in the December-quarter performance of the top four IT firms.

Without exception, the top four majors beat Street estimates across all parameters — revenues, profitability, or net profit growth.

However, what stood out were the large deal wins reported by the big two, Tata Consultancy Services (TCS) and Infosys. While TCS got deals worth $6.8 billion in the quarter, the clear outlier has been Infosys. The company reported a large contract value of $7.13 billion, its highest ever; half of this was