Mid-cap IT companies' June quarter performance all about niche play

Unlike the top four or five IT players, when it comes to the mid-cap IT services players, every company has a different strategy and focus segments

While the Q1FY22 results of the top four IT players were about capturing growth being driven by cloud and digital transformation, the mid-cap IT firms' Q1 performance was all about their niche play and how they are growing faster than the larger players.

Take the case of Blackstone-backed Mphasis. The company’s US dollar revenue grew 6 per cent on sequential basis. It was able to ramp up its total contract value (TCV) to a record high of $505 million and also managed to meet Street expectations in margins.

“EBIT margins were largely in line with estimates. Sequentially, gross margins contracted