BackiGATE says strong rupee to hit revenue growth
iGATE says strong rupee to hit revenue growth
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By Reuters
BANGALORE: Indian software firm iGATE Global Solutions Ltd. expects a stronger rupee to hurt revenue growth by about 1.5-2 % in the March quarter from the December quarter, its chief financial officer said today.
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 Reuters.
“There is a 2 % 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 %," he said. The Indian rupee hit a 20-month high of 43.35 per dollar today 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 % owned by US-based iGATE Corp., were up 1.8 % at Rs393 in a Mumbai market that was down 0.6 %.
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