Indian IT Services Sector (IT sector)’s earnings growth will come down to 3 per cent in the current fiscal from 9.2 per cent in the previous fiscal. Domestic rating company ICRA Ratings (ICAR) expressed this estimate on Tuesday. The rating agency said that in the current financial year 2023-24, there will be a decline in the profits of the sector and the operating profit margin will come down by one percentage point to 20-21 percent. Citing the slowdown in demand as the reason for the slowdown, ICRA said that income growth will decline from 9.2 per cent recorded in the financial year 2022-23 to 3-5 per cent in 2023-24. Deepak Jotwani, head of the IT services sector at the agency, said there is “persistent uncertainty” in key markets for IT companies, due to which non-core projects continue to be held up. He informed that discretionary IT spending has been reduced by key sectors such as banking, financial services and insurance, retail, technology and communications.
