MUMBAI: Already burdened with high debt, policy paralysis, project delays and liquidity issues, India Inc is now facing another challenge: The free-fall of the Indian rupee, which is giving sleepless nights to the brass.
After reporting disappointing results in the June quarter — the slowest revenue growth in the last 12 quarters — the pain has just increased for corporate India and, with the falling rupee, there's little hope it will ease anytime soon.
"It's a real problem and a very difficult situation. It's bound to swell inflation, put policy makers in a dilemma and growth will languish. I don't know how I should react as the falling rupee adds to our revenues. But, on the other hand, it leads to huge under-recoveries for oil marketing firms that we have to compensate. Our Q1 results were impacted and I don't know what Q2 holds for us as it depends on the under-recoveries of the OMCs. Each depreciating rupee leads to Rs 9,000 crore of under-recoveries," A Banerjee, director (finance), ONGC, India's largest oil explorer, told TOI.
0 comments:
Post a Comment