Re fall, hedging to impact IT results

On the one hand, IT firms - which hedged themselves taking the view that the Indian rupee would continue rising against the US dollar - will have to bear a negative impact on the portfolio that has been hedged so far.  On the other, their top line as well as operating margins (EBIDTA) will get a boost since the rupee has depreciated by 2.5 per cent over the last three months (January 1, 2008 - till date).  In the trailing quarter ending December 31, 2007, the rupee was just about stable while it had risen against the US dollar by nearly 13 per cent over the last one year. Every percentage rise or fall in the rupee adds or subtracts 30 to 50 basis points from the bottom line.