The spread of coronavirus failed to grip the IT sector

Mumbai, Ta. 17 July 2020, Friday

Coronavirus has not had a significant impact on the country's IT sector, according to the results of the first quarter of the current financial year released by some of the country's top information technology (IT) companies so far.

Despite the weak turnover figure, companies have been successful in getting new contracts.

Despite a quarterly decline in revenue, top companies like TCS, Wipro and Infosys have managed to get big deals in the first quarter of April-June. There are also indications that vendors are getting stronger with the money that governments of different countries have poured into their countries to boost the economy. From the statements coming from IT companies, it is clear that the impact of Kovid-12 has been sector-centric.

Analysts also expect the second quarter of the current financial year to see further improvement in sectors such as banking, financial services and insurance. The last six months of the current financial year are expected to be much better than the first six months.

The country's financial, health and high-tech sectors are showing signs of recovery, while recovery in manufacturing and retail may take time. The current quarter is likely to be stronger as most foreign markets, such as the US and Europe, open up.

An increase in operating profit in the first quarter helped IT companies manage or reduce their costs, an analyst said.