HCL Technologies, one of India's leading IT services providing company, has said today that it may incur a foreign exchange loss of Rs 286-329 crore ($67-$77 million) for the year ended June 30, 2008. The loss for the recently concluded quarter which includes a mark to market (MTM) impact on the outstanding foreign exchange covers is likely to be $65-$75 million. The losses will be on account of foreign exchange owing to strenghthening of the US currency against the Indian rupee in respect of its outstanding hedges. The company has been following the policy of hedging its foreign currency inflows against fluctuations by taking forward covers. HCL had forward covers of $2.5 billion as of March'08 end, said a release sent to the Bombay Stock Exchange today. The US Dollar as of June 30 appreciated against the Rupee by 7.3 per cent. In addition the company has clarified that the 12 month forward premiums have firmed up from Rs 0.67 to a Dollar as of March end to Rs 1.77 as of June end. As a result of the MTM loss, the company will be carrying $114 million as 'other comprehensive loss' in the balance sheet, the release further stated.
