New Delhi, May 13 -- The sharp depreciation of the US dollar over the past three months has become a growing concern for Indian IT companies, particularly those with a high concentration of USD-denominated revenues.

The USD has depreciated approximately 4 per cent against the Indian Rupee (INR), with even sharper declines against the Euro (7.6 per cent) and British Pound (9.9 per cent).

The appreciation of the INR is expected to negatively impact the profitability of Indian IT companies, particularly mid-tier firms with significant offshore exposure and limited currency hedging strategies.

According to a recent analysis by Kotak Institutional Equities, the extent of the impact on earnings will depend on factors like effort mix, currenc...