Thriam
Thriam
LMW
LMW
OEM Update
.

Significant depreciation of Rupee to benefit private upstream oil companies: ICRA

By September 26, 2013 10:23 am IST

The major weakening of Indian Rupee has been over the period from June 2013 to September 2013 and the impact of the same on the financials of upstream companies would get reflected from Q2 FY 14, says ICRA in its latest study on Oil & Gas sector. Significant depreciation of Rupee to offset the impact of diesel price deregulation leading to high level of under-recoveries for FY 14. Indian Rupee has depreciated sharply by around 15% against the US dollar since the beginning of the FY14. ICRA Research expects the under-recoveries to be around Rs 1500 billion for FY 14 at the average Rupee/USD of 62.2 for FY 14 and average crude oil price of US$ 108/bbl factoring in Rs. 0.5 per litre increase in diesel prices on a monthly basis. Under-recovery burden for ONGC and OIL would remain high in FY 14 due to significant depreciation in Rupee against US$ and thus, net crude oil realisations of ONGC and OIL will remain low despite high gross realisations. In this regards, it is to be noticed that the under-recovery of GAIL is expected to remain constant at Rs. 7 billion as evident from the trend of last five quarters, says ICRA in the report. The depreciated level of Rupee against US$ directly translates to the high Rupee denominated profits and cash accruals of the private upstream companies like Reliance Industries Limited (RIL), Cairn India Limited (CIL) etc as their realisations are denominated in US$ and the operating costs are a fraction of the realisation levels. We believe that CIL has upside in revenue potential of Rs. 3.0 billion per annum for every one rupee depreciation against US$, while E&P segment of RIL could have upside potential of Rs. 1.0-1.3 billion per annum for every one rupee depreciation”, says ICRA.

Cookie Consent

We use cookies to personalize your experience. By continuing to visit this website you agree to our Terms & Conditions, Privacy Policy and Cookie Policy.

Tags:
OEM Update QR Code
OEM Update QR Code
TCI
TCI

Events

AMTS China
AMTS China
India Fastener Show
India Fastener Show
India Manufacturing Show
India Manufacturing Show
4th IFFE EXPO 2025
4th IFFE EXPO 2025
Factory Automation Expo 2025
Factory Automation Expo 2025
17th ENGIMACH 2025
17th ENGIMACH 2025
LWOP
LWOP
IFAT India 2025
IFAT India 2025
Laser Engineering Technology Expo
Laser Engineering Technology Expo
Auto EV Bharat 2025
Auto EV Bharat 2025

eMagazine June 2025

eMagazine June 2025
eMagazine June 2025

Do you want to advertise here? Contact us

Our Sponsors

ELGI-banner
ELGI-banner
DIRAK
DIRAK
B&R Automation
B&R Automation
Pragati Gears
Pragati Gears
Pilz India
Pilz India
Carl Zeiss India
Carl Zeiss India
Nord
Nord
Testo-India
Testo-India
Maco-c
Maco-c
Vulcan Rubber
Vulcan Rubber
Fronius
Fronius
Inovance Technology
Inovance Technology
Mallcom
Mallcom
Caliber Valves
Caliber Valves
igus
igus
Delta Electric
Delta Electric
Jayashree Electrodevices
Jayashree Electrodevices
Kumbhojkar plastic moulders
Kumbhojkar plastic moulders
Libratherm instruments
Libratherm instruments
MACHbow Enterprise
MACHbow Enterprise
Ravik Engineers Private Limited
Ravik Engineers Private Limited
Roots Industries India
Roots Industries India
Kennametal India Pvt Ltd
Kennametal India Pvt Ltd
Cumi
Cumi
Vega India Level Ltd
Vega India Level Ltd
Marvel Machinery
Marvel Machinery
Cube Cadtech
Cube Cadtech
Jk Machines
Jk Machines
Thakoor Maschinen
Thakoor Maschinen
UNP Polyvalves India Pvt Ltd
UNP Polyvalves India Pvt Ltd
Vijay Gears Pvt Ltd
Vijay Gears Pvt Ltd
Wago Pvt Ltd
Wago Pvt Ltd
Studer
Studer
Prostar
Prostar
Dosatron
Dosatron
ENS Oils & Lubricants
ENS Oils & Lubricants
Super Slides
Super Slides
Precihole
Precihole
Aard Wolf
Aard Wolf
Ziehl Abegg
Ziehl Abegg
ACE Micromatic Group
ACE Micromatic Group
Profectus
Profectus
Eplan
Eplan
Mastercam India
Mastercam India
HMS
HMS
Savy
Savy
Ceratizit
Ceratizit
Mahr
Mahr
Klueber
Klueber
Accu Sharp
Accu Sharp