GAINERS
TCS :
The largest IT company in the country derives 53% of its revenues from the US market. A depreciated rupee augurs well for TCS since it improves realisation in rupee terms.
INFOSYS :
The country's second largest IT exporter will benefit since it earns two-thirds of the revenue in dollars.
SESA GOA :
The iron ore miner stands to gain from the depreciation of the local currency, as it exports over 80% of its total production. This will lead to an increase in earnings in rupee terms.
CIPLA :
The pharma major gets around 60% of its sales from exports. Hence, it will benefit, especially at a time when its domestic business is struggling.
DR REDDY'S :
Dr Reddy's earns around three-fourths of its revenues overseas and, hence, will gain. But the gains may not be visible immediately as it has hedged around 60% of its exports at the rate between Rs 45 and Rs 47 per dollar.
BAJAJ AUTO :
Bajaj Auto is the country's largest exporter of two and three wheelers. Its motorcycle brand Pulsar has carved a niche for itself in East Asian markets. The company has expanded the presence of its three-wheelers and motorcycles across South Asia, Latin America and Africa.
ONGC :
ONGC stands to gain since its products are priced in US dollars. Every single degree of depreciation is expected to add over 1,500 crore to its gross annual revenues. However, the Centre may increase ONGC's subsidy burden, which could negate the gains.
SAIL :
Import of coking coal constitutes the biggest import bill for SAIL, which needs to import more than two-thirds of its coal requirement. As the international coal prices are rising, the depreciation will add to production cost.
STERLITE :
Sterlite's copper business, which contributes nearly half of its consolidated revenues, imports nearly all its key inputs such as copper concentrate and rock phosphate. As a result, the falling rupee will increase its outgo on raw material imports.
RELIANCE INDUSTRIES :
Although India's single largest exporter, imports of Reliance Industries far exceed its exports. Still the negative impact would be subdued for RIL since most of the products - petrochemicals and polymers - it sells domestically are priced on import-parity basis.
BPCL :
The crude oil that BPCL refineries process is either imported or priced on import-parity. This means a falling rupee directly adds to BPCL's costs.
Src: ET
TCS :
The largest IT company in the country derives 53% of its revenues from the US market. A depreciated rupee augurs well for TCS since it improves realisation in rupee terms.
INFOSYS :
SESA GOA :
The iron ore miner stands to gain from the depreciation of the local currency, as it exports over 80% of its total production. This will lead to an increase in earnings in rupee terms.
CIPLA :
The pharma major gets around 60% of its sales from exports. Hence, it will benefit, especially at a time when its domestic business is struggling.
DR REDDY'S :
Dr Reddy's earns around three-fourths of its revenues overseas and, hence, will gain. But the gains may not be visible immediately as it has hedged around 60% of its exports at the rate between Rs 45 and Rs 47 per dollar.
BAJAJ AUTO :
Bajaj Auto is the country's largest exporter of two and three wheelers. Its motorcycle brand Pulsar has carved a niche for itself in East Asian markets. The company has expanded the presence of its three-wheelers and motorcycles across South Asia, Latin America and Africa.
ONGC :
ONGC stands to gain since its products are priced in US dollars. Every single degree of depreciation is expected to add over 1,500 crore to its gross annual revenues. However, the Centre may increase ONGC's subsidy burden, which could negate the gains.
LOSERS
SAIL :
Import of coking coal constitutes the biggest import bill for SAIL, which needs to import more than two-thirds of its coal requirement. As the international coal prices are rising, the depreciation will add to production cost.
STERLITE :
Sterlite's copper business, which contributes nearly half of its consolidated revenues, imports nearly all its key inputs such as copper concentrate and rock phosphate. As a result, the falling rupee will increase its outgo on raw material imports.
RELIANCE INDUSTRIES :
Although India's single largest exporter, imports of Reliance Industries far exceed its exports. Still the negative impact would be subdued for RIL since most of the products - petrochemicals and polymers - it sells domestically are priced on import-parity basis.
BPCL :
The crude oil that BPCL refineries process is either imported or priced on import-parity. This means a falling rupee directly adds to BPCL's costs.
Src: ET
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