The company has not cut its prices so far as the rupee is still volatile. The worry is at which point the currency will stabilise, he adds.
Also read: Ben Bernanke speech: Did Fed chairman fool the Street?
Below is the edited transcript of his interview to CNBC-TV18.
Q: The corollary to what Fed has done is that it means that the outlook for the economy is slightly lower. It is not as great as it was earlier. Do you sense signals that going forward, there could be some problems in the US market recovery?
A: The demand for Indian IT mercifully arises both when the economies are doing well. The economies are not doing so well. There is a greater pressure to save costs and bring economies in their operations.
Therefore, India looks like an alternative. We have seen that in Europe. If the US economy does not do well, I am not that disturbed as our relevance becomes even better.
Q: The currency has been extremely volatile from 59/USD to 68/USD; now it is back to 62/USD. What is going to be the impact on your company?
A: In one or two quarters, some benefits may be seen. But then the industry adjusts itself to the new realities of pricing. In competition for new business, Indian industry competes largely with each other internationally; we will take into account the reduced value of rupee.
Therefore, it reduces cost, but it is not a proportional reduction in cost for every one dollar. The Indian cost is about 30 percent. The rest our expenditure in foreign exchange. So the entire benefit of depreciation does not flow down to us.
Secondly, you will see inflationary pressures within the country, which will push up the Indian cost too. So net-net, I see the benefit being perhaps one-two quarters if that.
Q: You referred to pricing cuts on account of rupee depreciation. Are there any pricing cuts that you have already done? Do you expect any going forward?
A: No, we haven't seen any pricing cut so far. The jury is still out at where the rupee will finally stabilise and industry internationally responds to short-term. Our worry is not so much short-term as long-term where the rupee finally will stabilise at.
So, the benefits if they are there will be temporary.
Q: Is Tech Mahindra planning any acquisition in this year? Have you shortlisted anything?
A: We have declared policy that we will grow both organically and non-organically. Our acquisitions will be based on not for bulking purposes but for strategic reasons. We are always looking at a number of opportunities when we find the right strategic fit, we will go ahead and make the acquisition.
Q: Have you shortlisted any acquisition targets?
A: We have number of objectives, but for obvious reasons we cannot talk about it.
Q: For the full year, are you confident of beating 12-14 percent NASSCOM forecast for dollar-revenue growth?
A: We don't give guidance on this issue, but we would be going with the averages definitely.
Q: What about the telecom vertical, will it grew in line with the industry average?
A: Our telecom revenue is growing other than BT ahead of the industry average. Taking our entire telecom segment into account, we will more or less be growing in line with the predictions for the industry.
Anda sedang membaca artikel tentang
Weak rupee to benefit only in short-term: Tech Mahindra
Dengan url
http://kebugaranhidup.blogspot.com/2013/09/weak-rupee-to-benefit-only-in-short.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Weak rupee to benefit only in short-term: Tech Mahindra
namun jangan lupa untuk meletakkan link
Weak rupee to benefit only in short-term: Tech Mahindra
sebagai sumbernya
0 komentar:
Posting Komentar