Key Points
Indian companies except the ones in the telecom sector exhibited viable debt servicing capacity despite rise in their borrowing cost last year, the Reserve Bank of India said in a report...
Debt servicing capacity of manufacturing companies measured by interest coverage ratio (ICR) although moderated to 7.3 in 2022-23 from 8.4 in 2021-22, due to rise in interest expenses, was significantly higher than the minimum viable value of 1. ..
ICR for non-IT services sector crossed unity, where all subsectors except telecom group had viable ICR level, RBI said.. ICR is the ratio of earnings before interest and tax to interest expenses..
Higher demand and commensurate sales growth also led to the rise increase in manufacturing companies expenses on raw material and employees.. Listed private non-financial companies recorded a near 20% sales growth in FY23 cumulatively over what it was in the preceding fiscal while profit margins of manufacturing and IT companies moderated, data released by Reserve Bank of India showed...
The data was drawn from abridged financial results of 3,115 listed non government non-financial companies, RBI said.. Information technology sector sustained its high growth momentum and the performance of non-IT services companies improved further during 2022-23, led by robust growth in trade and transport sector...
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