SENSEX NIFTY
Jun 20, 2013, 03.57 PM IST | Source: Moneycontrol.com

These 15 companies will feel the pain of a sinking rupee

Bharti's exposure to rupee depreciation is mainly led by the unhedged USD 8.7 bn loan it took for its Africa asset acquisition. Although rupee depreciation boosts the Africa subsidiary's USD revenue and EBITDA, it also boosts its net loss.

Moneycontrol Bureau

The rupee Thursday hit a record low of 59.9 to the dollar, sending the stock and bond markets into a tizzy. The companies that will feel the pain of a falling rupee will be those which import a significant portion of their raw materials and those which have borrowed heavily in foreign currencies.

Brokerage house Goldman Sachs lists 15 such companies, which will hurt from the depreciating rupee.

Ambuja Cements 

Negative P&L impact on higher costs of imported coal. Company imports around 40 percent of its coal requirement

Also Read - 10 stocks that will gain from a weak rupee: Goldman

ACC

Negative P&L impact on higher costs of imported coal. Company imports around 20 percent of its coal requirement

Bosch India 

Negative impact as Bosch is net importer of foreign currency.

Exide Industries 

Negative impact from imported raw materials primarily lead and certain other capital goods items offset slightly by export revenues.

Grasim Industries 

Negative P&L impact on higher costs of imported coal. Company imports around 20 percent of its coal requirement for cement subsidiary. Company hedges entire foreign currency borrowing exposure
 
India Cements 

Negative P&L impact on higher costs of imported coal, company imports around 65 percent of its coal requirement. Marked-to-market loss on foreign debt of USD 60mn.

Ashok Leyland 

Marginally negative, marked-to-market of foreign debt impact is offset by lower LME & limited export revenues

Bharti Airtel

Bharti's exposure to rupee depreciation is mainly led by the unhedged USD 8.7 bn loan it took for its Africa asset acquisition. Although rupee depreciation boosts the Africa subsidiary's USD revenue and EBITDA, it also boosts its net loss. In addition, forex impact on the P&L is on 1) interest payments on loans and 2) equipment payables. 

Idea Cellular 

We consider Idea to be relatively better positioned despite having FY13 net debt/EBITDA of 2.0 times, as around 60 percent of its debt is in foreign currency and half of it is hedged.  

Reliance Communications
 
As of 4QFY13, 69 percent of RCom's debt is in foreign currency and we believe most of it is unhedged. On the P&L, RCom would positively benefit on revenues, as Globalcom revenues are USD denominated, and 2) there would be a negative impact on interest and principal payments. 

MRF

Negative impact from imported raw materials primarily Natural Rubber along with MTM. loss on foreign debt offset modestly by export revenues.

Maruti Suzuki 

Negative impact from Yen exposure through direct/indirect exports and royalty payments to parent Suzuki partly offset by export revenues which are mainly in USD. For FY14 MSIL has hedged 30 percent of YEN/USD leg and is completely unhedged on RUPEE/USD leg.

Shree Cement 

Negative P&L impact on higher costs of imported coal. Company imports 100 percent of its coal requirement

Ultratech Cement 

Negative P&L impact on higher costs of imported coal. Company imports around 20 percent of its coal requirement. Company hedges entire foreign currency borrowing

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