FX Risk Advisory & Hedging Optimization

Challenge

The client had significant FX exposure arising from imports, exports, and global operations. Managing multi-year currency exposure across volatile cycles required a structured hedging approach that could protect cash flows without overpaying for cover.

FX Smart Intervention

FX Smart implemented a disciplined FX risk management framework focused on hedge structure design, timing, hedge ratios, and ongoing exposure performance management across multiple market cycles.

Solution Implemented

• Structured management of multi-year FX exposures.
• Continuous market-linked hedging advisory for Treasury leadership.
• Optimization of hedge timing, ratios, and monitoring through disciplined Treasury processes.

Impact

• USD 568+ Million of cumulative FX exposure managed.
• ₹31.15 Crores cumulative savings delivered, including ₹4.61 Crores in FY 2024–25 and ₹3.95 Crores in FY 2025–26.
• Annual cost optimization ranged from 0.03% to 1.66% of managed exposure, with a blended multi-year impact of approximately 71 basis points.