The October-December (Q3) quarter is generally a low season for the Indian IT services industry due to furloughs in its majority markets — the US and Europe.
But the third quarter of FY22 will be an exception owing to broad-based secular demand for high digital transformation expenditure and a greater discretionary spend.
Though the increased cost of hiring, rising salaries, and lower working-days may affect margins, many analysts say a falling rupee in relation to the dollar can help.
Vikas Ahuja and Ashish Agarwal of Antique Stock broking in their report said: “We expect most of the companies to report margin expansion in