Mumbai, April 15: Infosys expects the rupee to depreciate — an event that could positively impact its balancesheet.

Analysts are divided over the possibility of the Indian currency coming under pressure from the US dollar.

They warn that the value of the rupee could skewer Infosys’ guidance. Apart from the Indian currency, the situation in the US will be a factor in determining whether Infosys is able to meet its forecasts.

The senior management at the Bangalore-based company reckoned that high crude oil prices and lower forex inflows could put the rupee under pressure at least in the near term.

The rupee had appreciated by more than 11 per cent last fiscal, which resulted in lower margins for IT companies. An increase of 100 basis points in the rupee’s value will erode margins by around 40 basis points.

Infosys is assuming a rupee rate of 40.02 against the dollar. It has also trimmed its hedging position to around $760 million from over $1 billion in December last year, which has been marked to market in accordance with accounting standard 30.

“I expect the rupee to appreciate 5 per cent each year,” said Harit Shah, IT and telecom analyst at Angel Broking. Shah warned that if the rupee appreciated, Infosys’ estimates would be thrown off the track. Some analysts expect the rupee to gain, arguing that this will largely be on account of high inflation, which will prompt the RBI to allow the currency to harden.