Labor cost inflation could moderate IT players’ profit margins by 1.5%

The shrinkage will come on top of the up to 3.50% shrinkage on the operating profit margin front for most IT companies in FY22

information technology | inflation | IT companies


Operating profit margins for information technology companies may moderate to as low as 1.5% in the near term, as labor cost inflation resulting from high attrition hits industry players by more than $200 billion, according to a report released Thursday.


The shrinkage will add to the shrinkage of up to 3.50% on the operating profit margin front for most IT companies in FY22, according to the report from national ratings agency Icra.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First published: Fri 10 Jun 2022. 02:36 IST

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