On The Mend
India Inc.'s interest paying capability shows signs of improvement, but the companies may not be out of the woods yet.
The economy is struggling to cope with fast piling corporate debt but going by the Business Today analysis, India Inc's debt servicing capability has improved. Out of the BT 500 companies (ranked on their average market capitalisation between October 2016 and September 2017), we have excluded the banking, financial services and insurance firms and a total of 378 companies, whose comparable data is available, have been considered. As per our findings, the combined interest coverage ratio (ICR) for the sample companies improved to 5.2 times in FY2016/17 from 4.8 in 2015/16. It was 5
