Mahindra Satyam is closely watching the volatility in currency fluctuations in order to take necessary decisions on hedging the currency risks.
“We are very alert keeping in view the high volatility. But different situations need different strategies. The current situation is very volatile and we are watching the situation closely,” Mr Vasanth Krishnan, Chief Financial Officer of Mahindra Satyam, told Business Line .
Mr Vasanth Krishnan, who has been appointed Chief Transformation Officer to oversee the Mahindra Satyam-Tech Mahindra merger, said the company follows a layered hedging policy, spreading the risk over the quarters.
“This will help us in taking stock of the situation and fine-tune our hedging policy depending on the situation then,” he said.
Due to the sharp appreciation of dollar in the fourth quarter last year, the company registered a loss of 59 crore. The total hedge book was put at $190 million last quarter.
Incidentally, the other Mahindra group firm Tech Mahindra too followed a similar strategy. Its layered hedging strategy takes a cover up to 5 years to mitigate volatility from currency fluctuation. Our hedging strategy has delivered well last year.