IT set for 10-60 BPS windfall from sharp rupee depreciation

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The rupee’s sharp depreciation is expected to boost the revenue of Indian IT services companies by 10-60 basis points (0.1-0.6 percentage points) sequentially in an otherwise muted fourth quarter, according to at least five brokerages.

For these service providers making more than 60% of their revenue from the US, the rupee’s depreciation against the dollar amid geopolitical tensions would enhance revenue reported in the Indian currency, though it does not indicate any changes in operational performance.

The rupee lost 10% against the dollar in the…



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IT set for 10-60 BPS windfall from sharp rupee depreciation


The rupee’s sharp depreciation is expected to boost the revenue of Indian IT services companies by 10-60 basis points (0.1-0.6 percentage points) sequentially in an otherwise muted fourth quarter, according to at least five brokerages.

For these service providers making more than 60% of their revenue from the US, the rupee’s depreciation against the dollar amid geopolitical tensions would enhance revenue reported in the Indian currency, though it does not indicate any changes in operational performance.

The rupee lost 10% against the dollar in the…



Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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