The Hindu Business Line : Infosys: Rising rupee to dent income by Rs 187 cr

INFOSYS, which expects its earnings to be Rs 1,956-1,964 crore in the last quarter of this fiscal , said the rising rupee could have an impact on its earnings by as much as Rs 187 crore.

Mr T.V. Mohandas Pai, CFO and member of the board, said the company has based its Q4 guidance on Rs 43.27 to the dollar against Rs 44.91 that it had used to base its third quarter guidance in October.

"Ninety eight per cent of our revenues come in a denomination other than the rupee and 78 per cent of revenues are in dollars. We report in rupees and even after taking up defensive hedging processes, there is an impact on operating margin,'' he said.

Net operating margins were 32.9 per cent during the quarter, compared to 32.1 during the previous quarter. "We have been able to maintain our operating margins despite the appreciation of the rupee.''

Cash and cash equivalents, including investments in liquid mutual funds, increased by Rs 236.26 crore during the quarter, from Rs 2,502.07 crore to Rs 2,738.33 crore after incurring capital expenditure of Rs 256.07 crore.

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