A MIXED BAG

THE VARIOUS SECTORS THAT BENEFIT OR SUFFER ON ACCOUNT OF THE RUPEE'S DECLINE

GAINERS

(Export-oriented sectors)

PHARMACEUTICALS:

Companies with exposure to US will gain and a third of our exports are to US markets. Exports grew 103% since 2013-14 to reach Rs 1.83 lakh crore last fiscal. But materials worth $4-5 bn were also imported. Companies focused on domestic markets and active pharma ingredient players will face escalating costs

IT SERVICES: Most companies bill their clients in USD. And the US market contributes 50-60% per cent to revenues for major companies. A 100 bps fall in rupee leads to a 30-bps operating margins benefit

TEXTILES:

Indian exporters get cost advantage to compete with countries like Bangladesh. Most raw material is domestically sourced. A 1% fall in the rupee increases profit by 0.25-0.5%. India also imports textiles and clothing from countries like China, Indonesia, Bangladesh STEEL: India exports 10-15% of its steel. A weak rupee evens the impact of the 15% export levy the govt announced in May LOSERS

(Industries with high import components)

AUTO: With 10-20% components imported, cars could become expensive. The impact would depend on exports and the export markets of the company.

TELECOM: Being a major importer of parts, estimates suggest a weaker rupee could push the capex bill by 5% this fiscal, forcing telcos to raise tariffs

CONSUMER ELECTRONICS:

Imported inputs make up nearly 40-60% of total costs. According to consumer electronics and appliances manufacturers, consumer durables could see a 3-5% price hike

SOLAR POWER:

Indian solar plants import solar cells and modules. Every one rupee fall vs the dollar leads to a 2 paisa/ unit rise in tariff

FMCG: Raw material imports make up nearly half of input costs. Companies could pass these on as margins come under pressure

OIL AND GAS:

With India importing nearly 80% of its oil and half of its gas, costs have risen for crude importers, which may be passed on to consumers or absorbed by the government, affecting its revenues. High fuel prices also stoke inflation