Processing .....please wait.. 
The article has been forwarded.... 
News >> Technology >>
Rising rupee may hit revenue: Infosys
Thursday, 13 January 2005, 20:30 IST
BANGALORE: The rupee's sharp appreciation against the US dollar in the third quarter (Oct-Dec) of the current fiscal 2004-05 is likely to impact the revenue of Infosys Technologies Ltd, the company said Wednesday.
Infosys chief financial officer T.V. Mohandas Pai said here that the company was expected to take a hit of 
1.56 billion ($35 million) for the whole year on account of the rupee appreciating by an average 2.8 percent against the dollar during the third quarter.
"Had the dollar remained at 45.91 as on Sep 30, 2004, our consolidated revenue for the current fiscal would have been higher by 1.56 billion," Pai said while highlighting the company's financial results for the third quarter ended December.
The rupee appreciation to 43.27 per US dollar in the third quarter led to a loss of 680 million ($15 million) in consolidated revenue despite the global software major taking forward cover by hedging in the foreign exchange market.
As against the guidance of 18.69 billion-18.82 billion for the third quarter, the company posted a consolidated revenue of 18.76 billion.
Infosys CEO, president and managing director Nandan M. Nilekani said: "The demand for outsourcing and off-shoring continues to be strong in spite of the rupee appreciation. We will be able to maintain operating margins."
As a result of the rupee appreciating, the company had restated its revenue guidance for fiscal 2004-05 in the range of 70.98 billion-71.07 billion as against its earlier revised guidance of 71.32 billion-71.60 billion, given on Oct 13, 2004.
In dollar terms, however, the company has projected its net revenues under the US GAAP (generally accepted accounting principles) at $1.59 billion for the whole year as against the revised guidance of $1.56 billion given in October.
Source: IANS
1.56 billion ($35 million) for the whole year on account of the rupee appreciating by an average 2.8 percent against the dollar during the third quarter.
"Had the dollar remained at 45.91 as on Sep 30, 2004, our consolidated revenue for the current fiscal would have been higher by 1.56 billion," Pai said while highlighting the company's financial results for the third quarter ended December.
The rupee appreciation to 43.27 per US dollar in the third quarter led to a loss of 680 million ($15 million) in consolidated revenue despite the global software major taking forward cover by hedging in the foreign exchange market.
As against the guidance of 18.69 billion-18.82 billion for the third quarter, the company posted a consolidated revenue of 18.76 billion.
Infosys CEO, president and managing director Nandan M. Nilekani said: "The demand for outsourcing and off-shoring continues to be strong in spite of the rupee appreciation. We will be able to maintain operating margins."
As a result of the rupee appreciating, the company had restated its revenue guidance for fiscal 2004-05 in the range of 70.98 billion-71.07 billion as against its earlier revised guidance of 71.32 billion-71.60 billion, given on Oct 13, 2004.
In dollar terms, however, the company has projected its net revenues under the US GAAP (generally accepted accounting principles) at $1.59 billion for the whole year as against the revised guidance of $1.56 billion given in October.
Source: IANS