Rupee volatility is not good for IT sector: V Balakrishnan, Infosys

NEW DELHI: While acknowledging that technically rupee depreciation helps IT companies, V Balakrishnan of Infosys told ET Now that currency's volatility is not good for the sector. "An 8% depreciation is too sharp for any company to handle, irrespective of their hedging program," he said.


Asked whether the company will benefit in terms of margin expansion, Balakrishnan said that cross-currency movements need to be factored in. "This is a function of how the hedging program works," he added.

On the issue of clients being worried about the rupee fall, Balakrishnan said that the issue is something that IT companies have to manage themselves. "Clients don't worry about currency," he said. He also said that rupee's decline will not have an impact on Indian market clients of the company.

Balakrishnan feels that the current plunge in the currency will not bode well for the country as a whole. "This may increase inflation and reduce RBI's scope to cut rates," he substantiated.