Despite the economic slowdown in the wake of the Covid-19 pandemic, several information technology (IT) services firms reported better-than-expected earnings during the opening quarter of the current financial year.
Most of these firms have seen a rise in digital contracts as well as cloud migration projects in recent months, which have helped them to shore up their toplines and bottomlines. The rupee depreciation, freezing of increments and better utilisation have helped IT services companies to report healthy margins during the quarter.
While there are challenges, most IT services firms including Bengaluru-based Mindtree, which reported a 130% growth in net profits in the first quarter, believe that the demand situation has bottomed out and is going to gain momentum quarter-on-quarter as most large economies have opened up despite the pandemic resurging around the world.
In an interview with TechCircle, Mindtree COO Dayapatra Nevatia said that the company's investments in areas such as data analytics, cybersecurity, cloud and digitalisation of enterprise IT will help the company post growth during the remaining quarters of this year.
Nevatia joined Mindtree as COO early this year from Accenture, where he was managing director and director of delivery at Advanced Technology Centres India, leading the delivery of several business segments. Prior to that, the IISc Bengaluru alumnus worked for close to 22 years at Wipro, where he led teams focused on energy, natural resources, construction and utilities.