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Sunday, July 01, 2007

Rupee Impact on IT Services


Bear Stearns analysts are assuming the following impact of rupee rise

For every 1% rise in rupee, operating margins have to be trimmed as shown below

# Infosys: trims operating margins 50 basis points.
# Wipro: 35 basis points.
# Satyam: 30 basis points.
# Cognizant: 20 basis points.
# Sapient: <15 basis points.
# Accenture <5 basis points.

So, with a rupee rise of over 10%, Infy's margins could take a hit of 5%