Rupee depreciation boosts IT firms' profit margins
pre-market1 source ↓written by the desknot a recommendation
- against the US
- ₹96.90
- in the rupee
- 5.7% decline
Rupee depreciation has provided a near-term cushion to IT services firms' profit margins, with the currency hitting an all-time low of ₹96.90 against the US dollar. Analysts from JM Financial noted a 5.7% decline in the rupee over the last three months, which is expected to stabilize margins for many firms in FY27. As IT firms earn in foreign currencies, a weaker rupee enhances dollar revenues, benefiting their profitability.
Not investment advice. For informational purposes only.