Strong rupee may hurt Q4 margins of Indian IT

With Rupee appreciating more than 3% since Dec 31, EPS of firms are expected to decline by 8%

Indian IT services firms may witness a dip in margins by up to one per cent if the rupee strengthens further and remains stable at Rs 65 against the US dollar, industry analysts say.

Companies such as Infosys and Wipro have struggled to maintain higher margins during the past few quarters owing to continuous pricing pressure and slow growth in digital technology adoption.

According to the analysts, during the fourth quarter of the last financial year, the value of a US dollar hovered around Rs 67 and Rs 67.5. If it improves to Rs 65, they say, these companies may see 100-130