Rupee increase! Is anybody gaining?
Malvinder Singh, CEO, Ranbaxy, accepts to B&E, “Out of $500 million of foreign debt that we have, close to $440 million is by way of FCCBs, & as the rupee appreciates, it will definitely work in our favour.”
Top CLSA Analyst, Anshu Govil, confirms the same, “Ranbaxy, with signify cant exposure, will have to set aside lower amounts to service the foreign debt.” The Q2 results of Ranbaxy, which surprisingly show smashing forex gains of Rs.2.014 billion, are a clear testimony.
Some companies were even smarter. Firms like ICICI & L&T were quick to take advantage of cheaper interest rates prevailing in Japan & borrowed massively in yen. For them, it was a double delight as the rupee appreciated as much as 17% against the Japanese yen in the last one year & almost 11% since the beginning of this year. Why couldn’t our other firms take advantage of such cross country hedging? The answer might seem too simplistic, but is in reality true. When was the last time you heard of RBI – like other central banks – conducting a treasury workshop for Indian firms? We have a small advice for RBI: just do it!
For Complete IIPM Article, Click here
Source: IIPM Editorial, 2008
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
Top CLSA Analyst, Anshu Govil, confirms the same, “Ranbaxy, with signify cant exposure, will have to set aside lower amounts to service the foreign debt.” The Q2 results of Ranbaxy, which surprisingly show smashing forex gains of Rs.2.014 billion, are a clear testimony.Some companies were even smarter. Firms like ICICI & L&T were quick to take advantage of cheaper interest rates prevailing in Japan & borrowed massively in yen. For them, it was a double delight as the rupee appreciated as much as 17% against the Japanese yen in the last one year & almost 11% since the beginning of this year. Why couldn’t our other firms take advantage of such cross country hedging? The answer might seem too simplistic, but is in reality true. When was the last time you heard of RBI – like other central banks – conducting a treasury workshop for Indian firms? We have a small advice for RBI: just do it!
For Complete IIPM Article, Click here
Source: IIPM Editorial, 2008
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
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Labels: ARINDAM CHAUDHURI, IIPM, MANAGEMENT GURU PROFESSOR ARINDAM CHAUDHURI, Management School
posted by Ravi RAWAT @ 3:14 AM
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