The depreciating rupee has been a concern for sometime now to almost all the sectors of the industry. Some have reacted positively and some are facing problems with it. The Oil marketers have been facing problems as they are importing about 70% of the crude oil requirements from abroad. The rupee has been constantly standing in the Rs. 49 range and has weakened over 10% from the last quarter.
BPCL and HPCL being one of the largest purchasers of dollars in the domestic currency have lost more than Rs.2000 crores in the September month alone. Around 50,000 barrels of crude is imported each day by these companies, where a depreciating rupee has forced them to pay Rs.4108 crores each day as against Rs.3438 in the last quarter. An estimated figure suggests that with every 1 Re. Increase against dollar is a loss of Rs. 670 crores for the company.
Although there has been a fall in the crude oil by 16% which has brought it down to $105.55 for each barrel QOQ it wont leave a major impact on the toplines of these companies. Only if the crude cost continues to fall in the coming quarters the oil companies may be able to mitigate their losses.
Bell the Bull says: Depreciating Rupees has brought some good news for sectors such as IT but on the other hand it has resulted in huge losses for the importing companies such as Oil sector companies.