5 Companies That Are Hit Hard By Falling Rupee

Bangalore: The depreciation in rupee has affected everyone that came on its way. From common middle-class men to top businessmen, the fall in rupee value has been disastrous to all. Especially, companies in India that are paying for imports in foreign currency have been mostly hit by rupee plunge. Imports get costlier for companies that pay interest on their borrowing in foreign currency. Slight change in rupee value impacts these companies in huge way, reports Yahoo! Finance India.

The impact in a company is analyzed based on change in earnings per share or net profit per share which is usually directly proportional to company’s share price. Read on to know the companies that have experienced a jolt in their earnings per share due to free-falling rupee-

1. Tata Chemicals

Although Tata Company earns almost half of its revenue in foreign currency, their huge borrowing of 7, 500 crore in foreign currency is limiting their profit.  Experts suggest that in FY2014, the company’s earnings per share will experience a dip of 30 percent for every 10 percent fall in rupee.

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