IT services sector's revenues may contract up to 3% in FY21: Icra

The Indian IT services sector may see an up to 3 per cent contraction in its revenues in the current fiscal amid multiple challenges on the demand side, a report said on Monday.

In its report, domestic rating agency Icra also said that the profit margins for the sector will go down as the growth slows down.

"The (IT services) sector is expected to grow at -3 per cent - Nil in FY21 versus earlier expectation of 6-8 per cent," the agency said in a report. TCS is the only company which has announced results for the first quarter, and