Indian Corporate Earnings Strain Amid Rupee Slide
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The recent decline of the rupee is impacting Indian corporate earnings, with companies like InterGlobe Aviation and Maruti Suzuki facing increased currency-related losses.
After two years of calm, the rupee's sudden slide is starting to strain Indian corporate earnings, sparking a rush among some companies to hedge their currency exposures.
InterGlobe Aviation Ltd., which runs India's largest airline, saw its foreign-exchange losses jump threefold to 14.6 billion rupees (USD 169 million) in the December quarter. The nation's largest carmaker Maruti Suzuki India Ltd. also cited currency variations as a negative for margins.
