Currency volatility may hit IT cos' profits
Monday, 25 October 2010, 15:58 IST
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New Delhi: Currency fluctuations are likely to dent the profit margins of Indian software exporters in the coming quarters, as uncertainties persist in the global economy, say analysts. The country's top three IT players Tata Consultancy Services, Infosys Technologies and Wipro were affected by foreign exchange volatility in the September quarter this fiscal and their profit margins took a hit. During Q2 FY11, July-September period, the rupee gained over three per cent against the U.S. dollar, to touch about Rs Rs 45. This year, the rupee has strengthened more than five per cent against the greenback. "The appreciation of the rupee against the U.S. dollar is likely to hit the profitability of IT companies in the coming quarters. Many players have raised this concern while coming out with their September quarter numbers," CNI Research CMD Kishore P Ostwal said
Source: PTI
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