THE RECENT DEPRECIATION of the rupee against the dollar is proving to be a tailwind for the Indian IT sector, which generates 50-60% of its revenues from the US market.
"For every 1% depreciation in the rupee, there is typically a 0.5% increase in revenue and about a 1.5% rise in profit. This quarter, the currency depreciation is expected to offset furlough impacts, leading to better performance," said Pareekh Jain, CEO, Pareekh Consulting and EIIRTrend.
So far during the third quarter, the rupee has declined by around 125 paise against the dollar. Analysts forecast this will enhance IT firms' margins by 30-50 basis points (bps).
Bu hikaye Financial Express Mumbai dergisinin December 24, 2024 sayısından alınmıştır.
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Bu hikaye Financial Express Mumbai dergisinin December 24, 2024 sayısından alınmıştır.
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