Bangalore: The brutal rupee depreciation phenomena took its toll on the software services firm Aztecsoft, who reported Rs.9.29 crore losses in the first quarter ended June 30, 2008. The depreciation led to a non-cash charge of Rs.22.24 crore being provisioned on the outstanding derivative instruments of the company.

The software firm also reports a foreign exchange loss of Rs.20.23 crore for the first quarter of FY09 as against a gain of Rs.5.7 crore in the corresponding quarter of FY08. Despite the losses incurred, a phenomenal surge in its revenue to Rs.76.77 crore is seen, thus marking a 30 percent year on year (YoY) increase, which projects strong demand of its clients. As Samir Bodas, CEO Aztecsoft said, "Given the macro economic environment, we remain cautious, but are very well prepared operationally to capture the demand." With an addition of another six clients, its active clients' number rise to 75."

However, the net result of the rupee depreciation was a gain for many firms who hedge their revenues and receivables in the forex derivatives market. There is Wipro with a net profit of Rs.907.80 crore as against Rs.725.60 crore thus indicating a 25.11 percent rise in YoY basis. Even Satyam Computer Services had a net profit of Rs.3.78 billion. Satyam has also achieved $637.3 million revenues, marking a 40.9 percent YoY increase and a sequential increase of 3.9 per cent.