Currency fluctuations among the Indian rupee, the pound sterling, the US dollar, the Australian
dollar, the Euro, the South African rand and the Philippine peso could have a material adverse effect on our results of operations.
Although
substantially all of our revenue is denominated in US dollars, pound sterling, and to a lesser extent, Euro, Australian dollars, and South African rand, a significant portion of our expenses (other than payments to repair centers, which are
primarily denominated in pound sterling) are incurred and paid in Indian rupees and, to a lesser extent, in South African rand and Philippine peso. Therefore, a weakening of the rate of exchange for the pound sterling, the US dollar, the Australian
dollar or Euro against the Indian rupee or, to a lesser extent, a weakening of the pound sterling against the South African rand or the Philippine peso would adversely affect our results. Furthermore, we report our financial results in US dollars
and our results of operations would be adversely affected if the pound sterling, Euro or the Australian dollar depreciates against the US dollar, or if the Indian rupee or, to a lesser extent, the South African rand or the Philippine peso
appreciates against the US dollar.
Fluctuations between the Indian rupee, the pound sterling, the Australian dollar, the Euro, the South African rand or
the Philippine peso, on the one hand, and the US dollar, on the other hand, expose us to translation risk when transactions denominated in such currencies are translated to US dollars, our reporting currency. The exchange rates between each of the
Indian rupee, the pound sterling, the Australian dollar, the Euro, the South African rand or the Philippine peso, on the one hand, and the US dollar, on the other hand, have changed substantially in recent years and may fluctuate substantially in
the future.
In addition, the military conflict between Russia and Ukraine may have substantial impact on the global economy and may result in
unpredictable fluctuations in foreign currency exchange rates, and in particular, may negatively impact the pound sterling, the Euro and other currencies in which our revenue is denominated. The withdrawal of the UK from the EU in January 2020 has
created significant political and economic uncertainty regarding the trading relationship between the UK and the EU. See The UKs withdrawal from the EU may have a negative effect on global economic conditions, financial markets and
our operations in the UK and EU, which could reduce the value of our ADS. These developments have caused, and may continue to cause, volatility in the exchange rates between the pound sterling and other currencies.
The average Indian rupee to US dollar exchange rate was approximately
₹82.40 per $1.00 in the six months ended September 30, 2023, which represented a depreciation of the Indian rupee by an average of
2.6% as compared with the average exchange rate of approximately ₹80.33 per $1.00 in fiscal 2023, which in turn represented a depreciation
of the Indian rupee by an average of 7.8% as compared with the average exchange rate of approximately ₹74.49 per $1.00 in fiscal 2022.
The average pound sterling to US dollar exchange rate was approximately £0.79 per $1.00 in the six months ended September 30, 2023, which
represented an appreciation of the pound sterling by an average of 4.4% as compared with the average exchange rate of approximately £0.83 per $1.00 in fiscal 2023, which in turn represented a depreciation of the pound sterling by an
average of 11.8% as compared with the average exchange rate of approximately £0.73 per $1.00 in fiscal 2022.
The average Australian dollar to
US dollar exchange rate was approximately A$1.51 per $1.00 in the six months ended September 30, 2023, which represented a depreciation of the Australian dollar by an average of 3.4% as compared with the average exchange rate of approximately
A$1.46 per $1.00 in fiscal 2023, which in turn represented a depreciation of the Australian dollar by an average of 7.3% as compared with the average exchange rate of approximately A$1.35 per $1.00 in fiscal 2022.
The average Euro to US dollar exchange rate was approximately 0.92 per $1.00 in the six months ended September 30, 2023, which represented an
appreciation of the Euro by an average of 4.5% as compared with the average exchange rate of approximately 0.96 per $1.00 in fiscal 2023, which in turn represented a depreciation of the Euro by an average of 10.4% as compared with the
average exchange rate of approximately $0.86 per $1.00 in fiscal 2022.
The average South African rand to US dollar exchange rate was approximately
R18.64 per $1.00 in the six months ended September 30, 2023, which represented a depreciation of the South African rand by an average of 9.7% as compared with the average exchange rate of approximately R16.98 per $1.00 in fiscal 2023, which in
turn represented a depreciation of the South African rand by an average of 14.4% as compared with the average exchange rate of approximately R14.85 per $1.00 in fiscal 2022.
The average Philippine peso to US dollar exchange rate was approximately PHP 55.79 per $1.00 in the six months ended September 30, 2023, which
represented a depreciation of the Philippine peso by an average of 0.9% as compared with the average exchange rate of approximately PHP 55.32 per $1.00 in fiscal 2023, which in turn represented a depreciation of the Philippine peso by an
average of 10.5% as compared with the average exchange rate of approximately PHP50.07 per $1.00 in fiscal 2022.
Our results of operations would be
adversely affected if the Indian rupee appreciates significantly against the US dollar or if the pound sterling or the Australian dollar depreciates against the US dollar or, to a lesser extent, if the South African rand or the Philippine peso
appreciates significantly against the US dollar.
For example, the depreciation of the Indian rupee, Philippine peso and the South African rand against
the US dollar in fiscal 2023 positively impacted our results of operations whereas the depreciation of the pound sterling and the Australian dollar against the US dollar negatively impacted our results of operations during that year.
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