Wage cost inflation may moderate IT players’ profit margins by 1.5%

Operating profit margins of information technology companies can moderate by up to 1.5 per cent in the near term as wage cost inflation coming on the back of high attrition hits players in the over $200 billion industry, a report said on Thursday.

The shrinking will be over and above the narrowing of up to 3.50 per cent on the operating profit margin front for most IT companies in FY22, as per the report by domestic ratings agency Icra.