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The Windfall

The steep fall of the rupee spells only one
thing for software exporters. Big bucks.

Industry majors like Infosys and Wipro have estimated a terrific impact on their bottom lines this year due to the poor performance of the rupee.

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"The weakening of the rupee will have a favourable impact on Wipro vis-a-vis exports," agreed Suresh C Seanpaty, corporate executive vice-president, Wipro. But he must be modest.

Wipro, which ranked number one among information technology companies last year in the DQ Top 20 survey, stands to gain phenomenally from the foreign exchange crisis.

Wipro exported software worth Rs 2.73 billion during 1996-97 and has set itself an impressive target of Rs 4 billion during 1997-98.

Although, Wipro declines to say how much of the export kitty will be shored up by the impact, it is expected to be anywhere around Rs 100 million, considering the 2.67 per cent depreciation of the rupee.

Infosys Technologies Limited, which is a net foreign exchange earner, will also gain considerably as it earns over 60 per cent of its revenue from software exports.

Infosys had ended up with revenues of Rs 1.43 billion last year when its exports were worth Rs 1.25 billion. With a growth rate over 50 per cent, Infosys is in for some really good windfall.

- Compiled from the Indian media

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