The weakening rupee coupled with the pickup in demand for technology products and services is helping the cause of Indian companies. “It is good for the industry. There may be increase in hedging fee. But no company takes cover for 100 per cent revenues. Net-net, they benefit out of increase in dollar value,” said Ankita Somani, sector analyst at Angel Broking. Today, the rupee touched a new low, closing at Rs 63.13 against the U.S. dollar Somani believes that the situation today is better than what IT companies were facing same time last year. “There is better visibility in the demand pipeline. All companies are seeing a pickup in demand for core IT services,” she added. A dip of one per cent in value of rupee would add 30-40 basis points in EBIDTA margins of a company.
Source : The Hindu Business Line
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