Over 10 companies from the BSE500 index reported a combined foreign exchange loss of approximately ₹3,000 crores in the December quarter. This loss is attributed to the depreciation of the rupee, which fell by 2.2% in the quarter, the biggest drop in nine quarters. As a result, companies such as InterGlobe Aviation, Adani Enterprises, UPL, Sun Pharmaceutical Industries, and JSW Infrastructure reported significant forex losses ranging from ₹1456 crore to ₹159 crore. However, Zydus Lifesciences, a generic drugs manufacturer, reported a forex gain of ₹183 crore, a four-fold increase from the previous quarter, due to the strengthening of the US dollar.
InterGlobe Aviation’s CFO, Gaurav M Negi, stated that the company’s exposure to foreign exchange risk is primarily due to its lease liability and maintenance obligations denominated in US dollars, resulting in a significant loss. To mitigate these losses, the company has taken steps to hedge part of its foreign currency outflow, which has already yielded a gain of ₹59 crore in the current quarter. Adani Enterprises and Adani Green Energy also reported forex losses of ₹296 crore and ₹307 crore, respectively, in Q3 FY25.
The decline in the rupee has had an adverse impact on the profitability of these companies, and the loss is likely to continue in the coming quarters. However, some companies are finding ways to mitigate these losses by taking steps such as hedging and diversifying their foreign currency exposure. Overall, the depreciation of the rupee continues to pose a significant challenge for Indian companies with foreign exchange exposure.