Rupee profit boost for domestic producers (ONGC, Oil India, Vedanta, RIL) as well as fuel exporters (RIL, Nayara).Margins come under pressure if higher costs due to depreciation cannot be passed on. The most affected sector as India imports over 85% of oil and half of the gas it consumes. Project viability concerns for those under execution possible delays.Every Re 1 fall vs dollar exchange leads to 2 paisa/unit increase in tariff. Projects may turn unviable due to exchange rate changes between time of bids and finalisation of equipment supply and other contracts. Indian solar plants depend heavily on imported solar cells and modules. Increases the global competitiveness of Indian tea, spurring more exports.** Margins expected to get 2-3% lift from currency depreciation Topline growth is likely to be around 5% more in FY23.For every 1% fall in rupee’s value, profit increases by 0.25-0.5%īig gainer as India usually exports nearly 230 million kg teas, or around 16% of what it produces, to countries such as Russia, Iran, the US, the UK, Germany, Japan, Poland, CIS countries.Those with good order books will make gains from currency depreciation.However, given the sharp drop in demand from the US and the EU, business may not be great. With sizeable US exports, the sector is a net gainer.
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