Client Profile
A Noida-based home furnishing exporter operating through three companies, with an annual export volume of ₹305 crores, primarily dealing in USD receivables. The company focuses exclusively on international markets with no domestic operations. Previously, they followed a passive policy of converting receivables only on the maturity date, exposing them to USDINR volatility.
The Challenge
Exposure to Volatility
Unpredictable movement of the USDINR rate meant losing out on favorable exchange rate fluctuations.
Suboptimal Hedging
Converting only at maturity left potential gains untapped. They missed opportunities to capture market highs.
The Myforexeye Solution
Strategic Positioning
Advised hedging no more than 35–40% of exposure. This balanced approach allowed them to benefit from favorable moves without locking in too early.
Spot Market Strategy
Moved away from rigid maturity-date conversion. Captured market fluctuations in both directions while earning the premium benefit from time value.
Early Profit Realisation
Enabled the client to realize profits before maturity by paying only the repo rate. This unlocked cash flow immediately instead of waiting.
Results & Impact
Profit from Market Volatility
Over the past 5–6 months, the USD/INR market saw significant volatility. With Myforexeye’s guidance, the client capitalized on these moves, generating a gain of ₹90 lakhs.
- Booked USD 7 Million forwards between 86.00 – 86.70.
- Cancelled at spot rates of 84.80 – 85.20 to book profits.
- New Position: Booked USD 10 Million (June 2025) at avg. 86.20, targeting an additional ₹1 Crore gain.
Optimized Receivable Conversions
While maintaining their policy of converting receivables at maturity, the client benefited from favorable market movements through the right hedging strategy and by capturing the carry premium.
Early Profit Realisation
The client was able to realise profits before maturity by paying only the repo rate. This provided flexibility and significantly enhanced their cash flows without waiting for the maturity date.
Conclusion
With Myforexeye’s expert advice, the client maximized profits from their USD receivables without fundamentally changing their policy of converting at maturity. By optimizing exposure, deploying a dynamic hedging strategy, and educating them on early profit realisation, the client gained ₹90 lakhs over 5-6 months, effectively managing currency risk in a volatile market.