Press Esc to close
Saturday 25 October 2014
News updated at 3:33 AM IST
Weather
Max: 0°C
Min : 0°C
In Bangalore
Sunny day

Weak Re to help IT cos offer better pricing: India Ratings

Mumbai, July 15, 2013 (PTI)

The steep depreciation of rupee in recent months will help IT companies as they will be able to offer better pricing to customers than global peers and win more contracts, said India Ratings.

"The weak rupee will help revenue growth, as the effect of translation increases the ability of IT companies to price better than global rivals. It will also make local IT services companies competitive and increase their chances of winning new and renewal contracts," India Ratings said in a report.
However, the report warned that though the current forex trend is positive for the sector managing foreign exchange risks will remain a key credit factor, especially if the volatility in rupee's exchange value continues.
Maintaining a stable outlook on the domestic IT services industry in the second half, the report says it expects liquidity of the companies to remain comfortable "due to their low debt levels and high cash balances, and positive free cash flows on continued contribution from the recurring and critical nature of IT services".  


Go to Top

Photo Gallery
College students walk in drizzle in Srinagar…

College students walk in drizzle in Srinagar…

People wait as three wild elephants cross…

People wait as three wild elephants cross…

Army soldiers display arms and ammunition recovered…

Army soldiers display arms and ammunition recovered…

Army Personnel inspecting their damaged vehicle…

Army Personnel inspecting their damaged vehicle…

Army personnel take positions during an encounter…

Army personnel take positions during an encounter…

Union Home Minister Rajnath Singh inspecting…

Union Home Minister Rajnath Singh inspecting…

Residents look for their belongings after a fire…

Residents look for their belongings after a fire…

Rush at Moradabad Railway Station on the eve of Bhai Dooj…

Rush at Moradabad Railway Station on the eve of Bhai Dooj…

Devotees collecting Puja Pasadam during Govardhan Puja…

Devotees collecting Puja Pasadam during Govardhan Puja…

Sikh religious warriors display their skills as they ride…

Sikh religious warriors display their skills as they ride…

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bangalore - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523