Sliding Indian Rupee- Impact on India Inc: Emkay

47435 Investors following Maruti Suzuki. Share this News with them.

0

Like this story, share it with millions of investors on M3

Sliding Indian Rupee- Impact on India Inc: Emkay

Emkay Global Financial Services has come out with its report on Indian Rupee.

Post your opinion here

 

0

Tweet

Share on Tumblr

Emkay Global Financial Services has come out with its report on Rupee.

Sliding INR - Earnings Impact:

• Seemingly alarming impact of INR depreciation on earnings is actually polarized amongst few sectors. Also, there are meaningful gainers from the depreciation of INR against major currencies
• 76 out of 160 companies under our coverage are getting impacted from INR depreciation, though emerging as both, gainers and losers
• Though, the average impact on earnings calculated on 76 companies is only +1.1% of FY12E earnings, the overall range is significantly wide with outliers at +24.7% and -15.2%
• Ignoring the outliers, the impact on earnings ranges within +7% to -6% on FY12E earnings
• Amongst obvious gainers is Information Technology with large export revenues in $ terms. Other sectors gaining from depreciation of INR are Metals (realization largely in $ terms) and FMCG (largely translation gain owing to international operations)
• The sectors experiencing negative impact are auto (being net importer), cement (exposure to imported fuel), capital goods (being net importer) and utilities (exposure to imported fuel and foreign currency loans)
• Gainers - Large Cap - HCL Tech (+16.0%), TCS (+7.2%), Wipro (+7.2%), Infosys Tech (+6.9%) and Sesa Goa (+5.4%)
• Gainers - Mid Cap -Infinite (+10.0%), NIIT Tech (+8.6%), Persistent (+8.2%), Patni (+7.3%) and Aurobindo Pharma (+4.0%)
• Losers - Large Cap - Maruti (-15.2%), BPCL (-3.1%), Adani Power (-2.5%) and JSW Energy (-2.4%)
• Losers - Mid Cap - Apollo Tyres (-6.5%), India Cement (-8.4%) , Madras Cement (-5.0%) and JK Tyres (-4.4%)

FIIs holding more than 30% in Indian cos

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click on the attachment