Infosys Technologies, India's IT bellwether, has lost about Rs 100 crore ($21.6 million) during the first quarter (April-June) of the current fiscal year (2003-04) on account of the rupee appreciation in the foreign exchange market as against the US dollar.

Admitting to the impact of rupee appreciation on its dollar revenues, Infosys CEO Nandan N Nilekani told the media in Bangalore on Thursday that the company was closely monitoring the fluctuation in the exchange rate and taking a cautious position to offset the losses on a weakening US dollar.

"To offset the losses on the exchange front, we are hedging the rupee in forward contracts on a quarterly basis. During the first quarter, the raise in rupee value by over 1-2 per cent has impacted our earnings in dollars from software exports to the tune of Rs 100 crore (Rs 1 billion), Nilekani stated.

Infosys' chief financial officer T V Mohandas Pai disclosed that the company was pro-actively hedging its net receivables to mitigate the impact of rupee appreciation on its margins.

"As our revenues are audited on quarterly basis, we are booking a higher premium on the rupee in the forward market in the current and next quarter," Pai stated.

Though betting on a strong rupee in the coming months, the company officials have not disclosed the quantum of funds being hedged for forward contracts to neutralise the impact on its margins.