The continuous depreciation of the rupee against the dollar has resulted in foreign exchange losses of Rs 4,800 crore for Nifty companies in the July-September quarter. This is the highest aggregate forex loss in a single quarter.
According to a Crisil Research report, this has wiped off eight per cent of these companies’ profit before tax (PBT). Further, the current quarter is likely to see forex losses of around Rs 3,500-4,000 crore.
“The demand for dollars rose due to repayment pressures on private foreign debt and the rising import bill. But, supply failed to keep pace, as foreign inflows dwindled,” says Crisil Principal Economist Dharmakirti Joshi.