In the wake of the ongoing pandemic, the US government suspended the H1-B, L1, and other visas till December of 2020 as a bid to improve the employment opportunities for the local Americans.
However, the report of Crisil Ratings, a domestic rating agency claimed the US decision to suspend the visas will result in the domestic IT firms facing a burden of mammoth Rs 1,200. This translates to around 0.25-0.30 percent of the companies profitability.
The ongoing pandemic followed by the suspensions of the visas played a vital role in the decline of the profits of the IT firms. These firms might lose profits for the financial year by around 2.50 percent.
After analyzing the performance of the 15 top firms, the domestic rating agency said the operating profitability might reach around 23 percent for this financial year.
The agency claimed that with the US Administration suspending the work visas, the local IT firms stopped depending on the Visas and hired local folks for the jobs. Financial Year 2020 saw a denial rate of 39 percent which increased by 6 percent when compared to that of the Financial year 2016.