The Indian Inc now looks forward to life after debt
The capacity of Indian companies to service borrowings has majorly improved despite knowing that the debt burdens have increased significantly in fiscal 2014. This has been understood with the help of an analysis based on most Indian companies who are in debt currently.
Since there are hopes that economic growth will pick up its speed with a proper and stable government in place, the companies feel very much confident that they might be able to reduce their level of debts and service them as well.
Recently there have been several steel-making firms such as Tata Steel and JSW Steel who have bought to our notice that the highest growth in net debt in terms of percentage among all the 9 companies for this year.
Some important business leaders such as Rao are also hoping that demands for services and products like steel, engineering and construction will very soon move along with the new government in power who is working hard towards encouraging investors and increasing the economic growth.
There are several who have taken higher debt in order to build assets over the past two to three years; and for them promises of a stronger economy with better abilities of utility will give them much more comfort.
Source – Nitin Shrivastava
Engineering, increased significantly in fiscal 2014, Indian inc, stable Government, steel firm, Tata Steel and JSW Steel
