Challenges to growth for IT cos persist but valuation comfort keeps them on shopping list

After facing headwinds on profitability for several quarters due to high attrition, information technology companies got some respite on this front in the quarter ended September.

The aggregate operating margin for the sector improved by 80 basis points QoQ, despite wage hikes by certain companies. The aggregate operating profit rose 10% YoY, and the net profit by 7% in Q2.