Strong deal pipeline may boost Q1 show of IT companies: Analysts

Margins will be a concern with salary hikes and attrition taking centre-stage

A seasonally-strong quarter, with no immediate impact of the second wa­ve and continued acceleration of digital transformation will allow the IT services sector to report a robust Q1 this fi­nancial year. However, key metrics to look out for will be attrition rate and margin lever as they will be impacted by salary hikes.

Analysts expect growth for the quarter to be broad-based, with sectors like banking, financial services and insurance (BFSI), retail, manufacturing, hi-tech and life sciences driving revenue growth.

Analysts across brokerage houses are pegging revenue growth in the range of 1.5 per cent to 4.5 per cent. Bengaluru-headquartered IT services