Economy & Market

Cement cos feel the heat of rupee weakness

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The recent depreciation of rupee against the dollar is hurting the financial health of cement cos who import raw materials.India Cements said it takes a hit of Rs 30 cr per annum in P&L account if the rupee depreciates Rs 5 against the dollar. Every drop in the rupee hurts the firm by Rs 10 per tonne of raw material import. The company imports 600,000 tonne of raw materials a year.On the positive side, the company will not face trouble repaying its external debt as it has been availed. The company currently has $80 million, of which $20 million has already been swapped. The remaining $60 million was availed recently and this is reasonably long-term, by which time the company feels rupee would stabilise.

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