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Corporate sector's interest coverage ratio rises to 2.4 times in Q2FY18

While this is marginally lower than the first quarter estimate of 42 per cent, the decline in the ratio is largely due to the exit of Tata Motors from the list

Ishan Bakshi 

Global Wealth

Tracking health Interest cover up, but stress remains. The corporate sector's interest coverage ratio has improved to 2.4 times in Q2FY18, finds a new study by Credit Suisse. But the percentage of with an interest cover of less than 1 continues to remain high at 40 per cent.

While this is marginally lower than the first quarter estimate of 42 per cent, the decline in the ratio is largely due to the exit of Tata Motors from the list. The share of that are chronically stressed — Credit Suisse defines them as those having an interest cover of less than 1 for the past four quarters — has increased to 38 per cent. in the metals, power and telecom sectors accounted for more than 40 per cent of with an interest cover of less than 1. Graph Graph Graph Graph

First Published: Wed, November 22 2017. 02:10 IST
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