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Rupee depreciation hurting SAIL’s finance

08 Jul 2013 Evaluate

SAIL has reported that Rupee depreciation has been hurting the company, given that it imports 75-80% of the coal requirement. Every 1 rupee depreciation has a negative impact of Rs 150 crore/year for the company. Meanwhile, forex loans, which account 60% of SAIL’s total loan book of Rs 22,000 crore, are hedged.

Large current account deficit (CAD) and growing vulnerabilities on the external front have largely contributed towards the secular decline and the current volatility of the rupee. Worryingly, the Indian currency has depreciated 9.8 per cent to 60.24 against a dollar since the start of 2013

SAIL is India's largest steel producing company. With a turnover of Rs. 49,350 crore, the company is among the five Maharatnas of the country's Central Public Sector Enterprises. SAIL has five integrated steel plants, three special plants, and one subsidiary in different parts of the country.

SAIL Share Price

172.40 -1.10 (-0.63%)
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