Indian IT firms may report 5-9% contraction in revenues for June quarter

Hospitality and travel, as well as manufacturing and retail, are the segments likely to see maximum hit

Indian IT services firms are likely to report 5-9 per cent contraction in revenues for the June quarter, even though deal pipeline is expected to remain firm.

According to industry analysts, margin will also face pressure, despite the various cost-cutting measures. The first quarter will see maximum impact of the pandemic on the profit and loss (P&L) account front, making it the worst quarter in the last three financial years.

“Most top-tier IT firm will see a 5-9 per cent drop in revenues in Q1 sequentially. The revenue contraction is mostly on account of demand deterioration and lower billing,” said Sanjeev Hota,