According to Government data, Kerala accounted for less than 5% of India's Population and is a highly consumption-oriented state. The state has been affected the worst flood it has witnessed in a 100 years. Companies that have a large presence in flood-affected areas are likely to take a hit in their results for the upcoming quarter.
1. Ramco Cements
: The company derives a majority of its business from Kerala and could be affected the most.
: Kerala is one of the major states supplying the key raw material of copra, accounting for 30% of the company's supplies.
3. Muthoot Capital and Muthoot Finance
: Muthoot Capital, with 650 branches and 45% of their two-wheeler loans from Kerala and Manappuram Finance, with 15% of its gold loan branches and 7% of MFI branches in Kerala, are expected to be adversely impacted.
4. MRF and Rubfila:
Natural rubber is a key raw material for these companies and is mainly sourced from Kerala.
: The company is headquartered in Kerala, and over half its business is from southern states.
6. Sheela Foam
: Coir, a key raw material largely procured from Kerala, could be in short supply affecting the production cycle of the company.
7. Federal Bank and South Indian Bank
: The banks derive 34% and 41% of their loans, respectively, from Kerala.
8. UBL and United Spirits
: On 16th August, the Finance Minister of Kerala announced a hike in excise duty on liquor to raise additional funds for flood relief, affecting profitability of these companies.
9. Other Companies that may be affected:
Jyothy Laboratories, India Cements, Dalmia Bharat, New India Assurance, ICICI Lombard, and Apollo Tyres.