Depreciating rupee shall have mixed impact on the sector. Companies which are highly dependent on exports or more than 50 per cent of their turnover is from exports shall gain from the depreciation, where as companies who have hedged their positions might not be able to benefit of the depreciation. Top companies in India have good exposure for exports in west, they will be in a position to encash the benefit. Moreover, there are many companies who have substantial exposure to imports of intermediates in order to process the raw material and some companies import API’s and they have already booked their orders at a particular dollar value, the depreciating rupee will be an issue for them since this will be in inverted position but if the company have entered into forward booking then they can take the advantage of the same.
– Bhavin Mukund Mehta, Director, Kilitch Drugs (India)
