Sliding INR – Impact on India Inc. 27rd September, 2011:: Emkay

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Sliding INR – Impact on India Inc.

23rd September, 2011

Sliding INR - Highlights

n     Seemingly alarming impact of INR depreciation on earnings is actually polarized amongst few sectors

n     Balance Sheet destruction ‘Rules The Roost’ – Based on our analysis - impact on balance sheet is more pronounced than impact on earnings

n     Ignoring the outliers, the impact on earnings ranges within +7% to -6% on FY12E earnings for Emkay Universe

n     Ignoring the outliers, the MTM impact ranges within NIL to -3.0% of FY11 Net Worth of Emkay Universe

Impact on FY12E earnings			MTM Impact	As % of FY11 net worth
HCL Tech	16.0%		Punj Lloyd	1.9%
Infinite	10.0%		Voltas	0.9%
NIIT Tech	8.6%		Tata Steel	-1.5%
Persistent	8.2%		Adani Power	-3.6%
Patni	7.3%		Aurobindo	-4.6%
TCS	7.2%		Lanco Infratech	-5.3%
Wipro	7.2%		Blue Star	-5.4%
Infosys Tech	6.9%		Bharti Airtel	-6.4%
Sesa Goa	5.4%		Jubilant Life	-9.4%
JSW Energy	-2.4%
Adani Power	-2.5%
BPCL	-3.1%
JK Tyres	-4.4%
Madras Cement	-5.0%
Apollo Tyres	-6.5%
India Cement	-8.4%
Maruti	-15.2%

Note:  Emkay