Strong rupee to hit revenue growth: iGATE
iGATE Global Solutions Ltd expects a stronger rupee to hurt revenue growth by about 1.5-2 per cent in the March quarter from the December quarter, its chief financial officer said on Monday.
By PTI |
BANGALORE: Indian software firm iGATE Global Solutions Ltd expects a stronger rupee to hurt revenue growth by about 1.5-2 per cent in the March quarter from the December quarter, its chief financial officer said on Monday. But margins may not be impacted as the company has $24-25 million worth of hedging for the quarter that ends on Saturday, N. Ramachandran told the media.
"There is a 2 per cent dip in the rupee realisation. Accordingly, our topline revenue will be impacted by that fall in the value ... So, the topline will be impacted compared to the immediate preceding quarter by about 1.5 to 2 per cent," he said. The rupee hit a 20-month high of 43.35 per dollar on Monday as a cash shortage spurred dealers to sell dollars to generate funds. The rupee ended 2006 at 44.23/24 per dollar.
At 0718 GMT, shares in iGATE, 69 per cent owned by US-based iGATE Corp, were up 1.8 per cent at 393 rupees in a Mumbai market that was down 0.6 per cent.
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