Cofo-rge and Cyient Group, mid-cap IT service providers, outperformed their peers in the September quarter earnings, maintaining operating margins and profitability despite macroeconomic challenges.
Cyient Group's September quarter revenue was $214.9 million, up 4.6% sequentially and 22.3% YoY in constant currency. Operating margin expanded by 40 bps to 16.5%, with a net profit increase to ₹172.8 crore attributed to growth in automotive, sustainability, and transportation verticals.
Coforge reported a 2.3% sequential growth in dollar revenue, reaching $278.1 million for the September quarter, with a 9.5% sequential increase in consolidated profit, reaching ₹181 crore.
Both Coforge and Cyient maintained their guidances and targets for FY24, with Coforge retaining its revenue growth guidance of 13-16% and a 50bps margin expansion target.
Large-cap IT firms like TCS, Infosys, HCL Technologies, and Wipro faced challenges, with TCS reporting a 0.3% sequential revenue drop and Wipro projecting a further revenue degrowth for the December quarter.
Large-cap IT firms like TCS, Infosys, HCL Technologies, and Wipro faced challenges, with TCS reporting a 0.3% sequential revenue drop and Wipro projecting a further revenue degrowth for the December quarter.
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Larger IT firms, including TCS, Infosys, HCL Technologies, and Wipro, faced challenges, with some reporting sequential revenue drops and revised guidance downward.
LTTS and Happiest Minds, two other mid-cap firms, witnessed a decline in operating margin and a downward revision in revenue growth guidance.