TCS, Reliance, Bajaj Auto among companies with highest net forex revenues in FY24

With the rupee falling beyond the 86 level against the US dollar for the first time, companies that have higher exports in their revenue are likely to see some uptick in topline going forward. While sectors such as information technology, healthcare and automobile are known for their foreign exposure, there are companies like Reliance Industries, Vedanta, ITC, PI Industries, Trident, and Shree Renuka Sugars too with considerable revenues in foreign currency.

While the IT behemoth Tata Consultancy Services (TCS) tops the list with a net forex revenue of ₹1.1 lakh crore in FY24, Reliance Industries Ltd (RIL) had a net foreign currency revenue of ₹96,098 crore during the year, data sourced from Ace Equity show. The net revenue is calculated by deducting the outflow in foreign currency from total forex inflows. To be sure, export revenue constituted 93.5% of TCS’s total standalone revenue in FY24.

Similarly, ITC reported a foreign currency inflow of ₹9,512 crore in FY24 against an outflow of ₹2,790 crore. Additionally, the inflows other than the rupee for Trident and Shree Renuka Sugars stood at ₹3,689 crore and ₹1,822 crore, respectively. Bajaj Auto reported a net forex revenue of ₹13,031 crore during the year.

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On the flip side, oil marketing companies like Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) feature among the largest importers as their forex expenses exceed their revenue. While IOCL had an outflow of ₹3.9 lakh crore in FY24, others like BPCL and HPCL recorded foreign currency outflows to the tune of ₹1.9 lakh crore and ₹85,613 crore, respectively.

The local currency came under pressure on Monday following the rally in oil prices and surge in the greenback. The dollar index rallied after the strong US jobs data reduced bets on further Federal Reserve interest-rate cuts, while the crude oil prices rose to a five-month high of $81.7 per barrel.

However, it’s to be noted that rupee depreciation also impacts the landed cost of the foreign currency liabilities as well as its repayment. Further, to mitigate the currency fluctuations many companies use a combination of natural and market hedges so that the exchange risk can be shielded.

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The rupee ended Monday’s session at 86.6 against the US dollar. With Monday’s loss, the local unit has given up 3.4% of its value over the last three months, and is the worst-performing currency in Asia, barring the South Korean Won.