Find out: 4 non-IT stocks set to gain from rupee fall

Emkay Global Financial Services has come out with its report on rupee depreciation. According to the research firm Divis Lab to benefit the most, followed by DRL , Cipla & Sun Pharma .

Aurobindo Pharma :

• 73% of revenues come from international sales which will have a positive impact on revenues of 10% in H2FY12E & 5% in FY12E
• Company has not taken any forward covers which will have a positive impact on EBITDA of 63% in H2FY12E & 35% in FY12E
• Company has forex loans of US$600mn which will result in increase in total liabilities by Rs4.2bn in FY12E
• Overall increase in PAT is limited to just 3% in H2'12 & 2% in FY12 due to MTM loss of Rs2bn in H2 & Rs4bn in FY12E

Cadila Healthcare :

• 64% of revenues come from international sales which will have a positive impact on revenues of 10% in H2FY12E & 5% in FY12E
• Company has USD190mn in forward covers. EBITDA will increase by 12% in H2FY12E & 6% in FY12E
• Company has forex loans of US$122mn which will result in increase in total liabilities by Rs1bn in FY12E
• Overall PAT is expected to decline by 11% in H2'12 & 6% in FY12 led by MTM loss of Rs1.2bn in H2 & Rs2.7bn in FY12

Cipla :

• 56% of revenues come from international sales which will have a positive impact on revenues of 7% in H2FY12E & 4% in FY12E
• Company has not taken any forward covers which will have a positive impact on EBITDA of 14% in H2FY12E & 7% in FY12E
• Company has forex loans of US$60mn on its books
• Overall PAT is expected to increase by 15% in H2'12 & 8% in FY12

Divi's lab :

• 91% of revenues come from international sales which will have a positive impact on revenues of 12% in H2FY12E & 7% in FY12E
• Company has not taken any forward covers. Rupee depreciation will have a positive impact on EBITDA of 37% in H2FY12E & 21% in FY12E
• Overall PAT is expected to increase by 37% in H2'12 & 21% in FY12

Dr. Reddy's Lab :

• 80% of revenues come from international sales which will have a positive impact on revenues of 7% in H2FY12E & 4% in FY12E
• Company has taken forward covers of US$775mn and has done the cash flow hedging which will limit the upside for EBITDA at 14% in H2FY12E & 8% in FY12E
• Company has forex loans of ~US$200mn and 60% of its receivables are fixed in nature
• Overall PAT is expected to increase by 16% in H2'12 & 9% in FY12

Glenmark Pharma :

• 72% of revenues come from international sales which will have a positive impact on revenues of 13% in H2FY12E & 5% in FY12E
• Company has not taken any forward covers which will have a positive impact on EBITDA of 19% in H2FY12E & 9% in FY12E
• Company has forex loans of US$350mn which will result in increase in total liabilities by Rs1.55bn in FY12E
• However, overall PAT is expected to remain flat in H2'12 & FY12 led by MTM loss of Rs751mn in H2 and Rs1.6bn in FY12

Ipca Labs :

• 53% of revenues come from international sales which will have a positive impact on revenues of 7% in H2FY12E & 3% in FY12E
• Company has taken forward covers worth $150mn @ of Rs48.5/$ as a result gain in EBITDA will be 34% in H2FY12E & 15% in FY12E
• Company has forex loans of US$129mn which will result in increase in total liabilities by Rs201mn for H2FY12E & Rs446mn in FY12E
• Overall PAT is expected to remain flat in H2'12 and FY12 due to MTM loss of Rs632mn in H2 and Rs950mn in FY12E

Jubilant Life Sciences :

• 69% of revenues come from international sales which will have a positive impact on revenues of 11% in H2FY12E & 5% in FY12E
• Company has not taken any forward covers which will have a positive impact on EBITDA of 33% in H2FY12E & 14% in FY12E
• Company has forex loans of US$403mn which will result in increase in total liabilities by Rs1.2bn for H2FY12E & Rs1.6bn in FY12E
• Overall PAT is expected to decline by 18% in H2'12 & 8% in FY12

Lupin :

• 69% of revenues come from international sales which will have a positive impact on revenues of 10% in H2FY12E & 5% in FY12E
• Company has taken US$200mn in forward covers. EBITDA will increase by 26% in H2FY12E & 13% in FY12E
• Company has forex loans of US$160mn which will result in increase in total liabilities by Rs1.1bn in FY12E
• However, overall PAT would improve marginally by 4% in H2'12 & 2% in FY12 led by MTM loss of Rs1.6bn in H2 & Rs2.4bn in FY12E

Ranbaxy Labs :

• 83% of revenues come from international sales which will have a positive impact on revenues of 13% in Q4CY11E & 13% in CY12E
• Company has taken forward covers of US$700mn. EBITDA will have a positive impact of 32% in Q4CY11E & 15% in CY12E
• Company has forex loans of US$122mn which will result in increase in total liabilities by Rs2.4bn in Q4CY11E
• Overall PAT is expected to decline by 78% in Q4CY11E & increase by 15% in CY12E

Sun Pharma :

• 67% of revenues come from international sales which will have a positive impact on revenues of 14% in H2FY12E & 7% in FY12E
• Company has not taken any forward covers which will have a positive impact on EBITDA of 13% in H2FY12E & 6% in FY12E
• Company has no forex loans - Overall PAT is expected to increase by 13% in H2'12 & 6% in FY12

Torrent Pharma :

• 52% of revenues come from international sales which will have a positive impact on revenues of 5% in H2FY12E & 2% in FY12E
• Company has taken forward covers worth $200mn @ of Rs48/$ and had done cash flow hedging, as a result gain in EBITDA will be only 7 in H2FY12E & 3% in FY12E
• Company has forex loans of US$80mn on its books
• Overall PAT is expected to imcrease by 9% in H2'12 & 4% in FY12 as all the losses will be taken in the balance sheet

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