Weak rupee to boost IT cos' topline
The topline of TCS, Infosys, Wipro, Satyam could exceed projections by between 3.3% and 6.3% if depreciation in the value of the rupee continues. Business week in pics
By TNN |
BANGALORE: The topline of the country���s top four software exporters ���TCS, Infosys, Wipro, Satyam ���could exceed projections by between 3.3% and 6.3% if the trend of depreciation in the value of the rupee against the US continues, a report by Angel Broking says.
The rupee has depreciated by 6.76% against the dollar since the beginning of this fiscal. It closed at 42.54/55 on the interbank forex market on Friday.
The report, authored by Harit Shah, said India���s biggest IT services exporter, TCS, would top its revenue guidance for the fiscal by 3.8% at a conversion rate of Rs 41 and by 6.3% at Rs 42. Satyam���s revenues are seen beating guidance by 3.6% at an exchange rate of Rs 41 and by 6.1% at Rs 42.
The rupee has depreciated by 6.76% against the dollar since the beginning of this fiscal. It closed at 42.54/55 on the interbank forex market on Friday.
The report, authored by Harit Shah, said India���s biggest IT services exporter, TCS, would top its revenue guidance for the fiscal by 3.8% at a conversion rate of Rs 41 and by 6.3% at Rs 42. Satyam���s revenues are seen beating guidance by 3.6% at an exchange rate of Rs 41 and by 6.1% at Rs 42.
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Infosys and Satyam, the country���s second and fourth largest software companies, respectively, have factored an exchange rate of Rs 40 while projecting revenue guidance for the fiscal. The EBIDTA (earnings before interest, depreciation and taxes) margins of all four companies are expected to rise by 1.1% at Rs 41 and by 1.9% at Rs 42. For the year-ended March 2008, Infosys reported a topline of Rs 21,447 crore, TCS Rs 29,372 crore and Satyam Rs 10,986 crore.
The report also cautioned that depreciation of the rupee was temporary and that the brokerage expects a 4% appreciation during 2009-10. Furthermore, with uncertainty about world economic growth continuing, there could be some cooling off in volume growth, at least during the first half of the current fiscal, the report says.
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