US H-1B visa rules to affect Indian IT profit margins in FY20: Report

Profitability of IT companies is set to be impacted by adverse policies like the one on H-1B visas in the key US market, with margins estimated to narrow by up to 0.80 per cent in 2019-20, a report said Monday.

Revenues are set to rise by 7-8 per cent in dollar terms for the over $180 billion industry in this fiscal on the back of faster growth in digital services, ratings agency Crisil’s research wing said in a note.

“The industry’s operating margins will narrow by 0.30- 0.80 per cent largely on an increase in local hires which the industry has been forced into due to the policy framework in its markets,” the note said.