 "Tata Motors’ forex losses have raised a red flag on Indian firms")
Tata Motors foreign exchange losses in the December quarter are a warning to Indian companies sitting on debts of Rs 8.1 lakh crore, of which 64 per cent is unhedged.
Analysts say any further depreciation in the rupee due to changes in the US Federal Reserve’s monetary policy will lead to rising losses for energy, metals and mining companies, which have the highest unhedged forex debt.
The rupee depreciated 2.7 per cent against the dollar in 2016 and 9.9 per cent since 2013. Many Indian companies now have large foreign operations with loans in various currencies.
“Some large companies have
