Forex

HCL Technologies on Friday announced that it expected to suffer foreign exchange losses of $65-75 million (nearly Rs 278-322 crore) for the quarter ended June 30, 2008, due to depreciation in the rupee. The firm, which is expected to announce its fourth quarter and 2007-08 results on August 1, said its forex loss for the full year was likely to be around $67-77 million (Rs 286-329 crore).

The company had reported a forex gain of $79.2 million (Rs 250.6 crore at the then-prevailing forex rate) during the financial year ended June 30, 2007. “As a part of its proactive treasury policy and to put a stop loss, the company unwound $540 million of forward covers and incurred cash loss of $9 million. As a result of mark-to-market forward covers, where hedge accounting is being followed, the company will be carrying $114 million as ‘Other Comprehensive Loss’ in the balance sheet,” a HCL Technologies statement said.

HCL had dollar-rupee forward covers of $2.5 billion as of March-end. As of June end, the company has dollar-rupee hedges of $1.7 billion. The dollar appreciated against the rupee by 7.3% in the quarter ended June 30, 2008. In addition, 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.