Digital deals to propel IT sector revenues; higher salaries to dent profits in FY22

MUMBAI: Indian IT services companies are likely to post a 9-12 per cent revenue growth in USD terms in FY22, helped by the strong demand for digital deals, a report said on Tuesday.

However, the same will not translate into profits, because higher salaries will result in the operating profit margins for the same set of companies to come at 23 per cent from 24. 2 per cent in FY21, domestic rating agency Icra said.