5 Companies That Are Hit Hard By Falling Rupee

By siliconindia | Tuesday, 03 September 2013, 13:22 Hrs

2. HPCL

Almost 80 percent of total oil consumed in India is imported. Hence, fall in rupee means rise in oil import prices which hits the profit of oil companies. The subsidized rate of petrol and diesel is not helping in anyway but acting like an old uncured wound. Companies like Hindustan Petroleum may have to bear a 29 percent reduction in profit for every 10 percent fall in rupee in FY14.

3. SpiceJet and Jet Airways:

The direct hit of dropping rupee is felt mostly by the airline companies. For the current fiscal, their earnings per share decreases by 330 percent for a fall of 10 percent in rupee. The profit of Jet Airways also does not seem very encouraging and may fall up to 70 percent. Since airline companies have to spend a major amount in importing jet fuel and their earning is mainly in rupee, the fluctuation in exchange rate hurts them the most.