Indian IT to see margin contraction in Q1FY18 due to rupee appreciation

Wipro and Tech Mahindra to post poor results due to pressures in their respective verticals

The first quarter of a financial year is normally the most important one for the information technology (IT) sector; along with the second quarter, it gives the direction to the overall numbers for the concerned financial year. Given the moderate guidance for financial year 2017-18 (FY18) given by Infosys, other IT companies, and Nasscom, we believe that it will be a year of consolidation for the industry, with growth rates likely to be more or less in line with FY17 and a pick up expected by 2018. 

Earlier, in its guidance for FY18, Nasscom expected the IT industry’s services exports