IT industry hit hard by negative factors

The year-end quarter has hit the Indian IT industry very hard. The reasons cited are floods in Chennai and heavy rains in other cities and lesser investment in the IT sector globally. Nascom had forecast that the $146 billion IT industry in India would make a progress of 12 to 14% this year. This is unlikely to be the case with the Indian IT giants posting lesser profits in the last quarter. These include TCS and Infosys. Faced with natural calamities and other factors, Nascom has been forced to bring down the profit levels for the Indian industry. Nascom said it would revise the IT industry profit levels after TCS announced its profit margins in the last quarter, according to its spokesman. Analysts of brokerage firms have forecast that the profit levels of top five IT companies in India would come down by 2%. Already Wipro and TCS have announced lesser profit margins. A weak Indian rupee is expected to rake in some profits, but this would not be enough to neutralise the negative factors facing the industry.