Rupee appreciation likely in coming months: TCS CFO

>> Friday, May 22, 2009

Software firm Tata Consultancy Services on Friday said further strengthening of rupee against the US dollar is a possibility in the
months ahead, but the topline of the company will not be affected unless it appreciates to 42-43 level.

"Over a period, a rupee appreciation is a possibility...unless the rupee slides back to the 42-43 range, it is not going to affect the topline," TCS Chief Financial Officer S Mahalingam said at a financial meet here today.

TCS will continue to play aggressive in the domestic market and has the requisite set of skills to execute complex projects, he said, adding the company would continue to hire in its on-shore division.

TCS' revenue hedging outstanding roughly stands at $600-million, out of which $399-million is for the current year. "Out of this $399-million, we have already used $100-million this year," he said.

The company has not taken any additional hedging positions this year and will look at the option after evaluating the risk-management policy, he said.

Source - Economic Times.