The net import bill of the Indian corporate sector is likely to go up by Rs 363 crore on account of depreciation of rupee to Rs 42 from a level Rs 40 per dollar a few days back.
This additional burden along with non-modvatable import duty of eight per cent proposed in the budget for 1998-98 will definitely reflected in the corporate results for the year 1998-99.
Reliance Industries, with net imports of Rs 3,692.25 crore for fiscal 1997-98, will be on the top of the hit list with its net import burden shooting up by Rs 184.61 crore. Daewoo Motors probably will have to go for yet another price revision if the rupee continues to fall further.
The company with net imports of Rs 2,150.33 crore during 1996-97 will have to bear a burden of Rs 107.52 crore if such imports are made during 1998-99.
SAIL, will have to forked out Rs 84.11 crore, while GSFC and Bhel will find their net import burden going up by at least Rs 40 crore each. While net importers will be back seated by the depreciation of rupee, exporters will merrily rake the money in.
Adani Exports will gain by over Rs 40 crore on depreciation of rupee. ITC's profits will rise up by another Rs 27 crore from its net exports.
National Aluminium Rs 24.20 crore, Hindustan Lever Rs 19.38 crore and KEC International Rs 18.10 crore will be the other major gainer of the depreciation of rupee.
The data available for 2000 companies shows that the corporate sector imported goods worth Rs 28,997 crore as against exports of Rs 20,744 crore during 1996-97 and 1997-98. The burden on account of import will rise by Rs 1,450 crore, while exports will appreciate by Rs 1,037 crore.
The net effect calculated on the basis of the current information will be Rs 360 crore and might shoot up to over Rs 400 crore if the net import figures for 1997-98 are made available.
Going through the net importers list one will find that major companies on the hit list will be the fertilisers, steel, consumer durable and trading companies.
Fertiliser companies which imports feedstocks (naphtha) and ammonium for the manufacturing of urea might see their import bill climbing up substantially.
Though these fertiliser companies profits are governed by price mechanism, they will have to shell out the money first before getting it back from the government.
The import duty burden of individual companies has been calculated on assumption that these companies have imported goods on basis of Rs 42 per greenback.
The previous imports assumed to made on the basis of Rs 40 per dollar. Refineries are excluded from the study as they are out of the preview of such fluctuations.
