Mid-sized IT firms disappoint in Sep quarter; L&T Infotech an exception

Barring hi-tech, media and BFS, all other segments demonstrated strong growth for it

Mid-cap information technology (IT) services companies have largely underperformed in the July-September quarter.

Except for L&T Infotech (LTI), they have been invariably unable to keep up on growth. Slower growth in the key banking and financial services (BFS) segment, and client-specific issues, are major reasons. 

“We would strictly advise against investing in mid-caps in Indian IT at this point. We see greater revenue and margin volatility in a likely no-growth scenario for the industry in FY21,” went a note from Girish Pai, head of research at equity research firm Nirmal Bang. 

LTI did have client-specific issues but reported a strong