The country's fourth largest software exporter HCL Technologies today said volatility in rupee's exchange rate is a major challenge for the company.

"We see a lot of traction and a lot of deal flow happening in the marketplace led by operating efficiency and cost saving steps.... We definitely see exchange rate as one of the challenges, company CFO Anil Chanana told PTI.

Most of the Indian IT companies earn a big chunk of its income from abroad in foreign currencies and the rupee's value against the dollar is vital for them. A stronger rupee is not beneficial to any exporter including software exporters like HCL and the rupee has appreciated 3-5 per cent in the last two quarters.

He, however, said as far as the net income is concerned the company in the next 8-9 months would be indifferent to the exchange rate -- the value of the rupee vis-a-vis US dollar which is susceptible to many factors in the forex market.

"Since we are already hedged, any movement does not impact. At the moment sufficient hedge available."

It also has foreign exchange hedges worth USD 645 million for the next nine months.

The company's loss in foreign exchange was 27 million dollars in the October-December quarter, down from 31 million dollars in the previous quarter.

Chanana also said any salary hike for employees is unlikely as an increase now would put pressure on the margins. In October last, the company had announced up to 10 per cent increase in salaries.