Tech giant TCS, Indian conglomerate Reliance, and leading automaker Bajaj Auto feature among the top companies with the highest net foreign exchange revenues in FY24.

The Indian rupee has depreciated to a record low, falling to 86 against the US dollar. This could benefit companies with a significant portion of their revenue coming from exports, such as IT companies like Tata Consultancy Services (TCS) and manufacturing companies like Reliance Industries, Vedanta, ITC, PI Industries, Trident, and Shree Renuka Sugars. These companies’ foreign exchange revenue may increase, offsetting the impact of currency depreciation. However, companies with significant import costs, such as oil marketing companies like Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL), may face a negative impact due to their foreign currency outflows. To mitigate exchange rate risks, companies often use a combination of natural and market hedges. The rupee’s depreciation may also impact the interest rate and make foreign currency liabilities more expensive. The rupee has lost 3.4% of its value over the last three months and is now the worst-performing currency in Asia, excluding the South Korean Won.