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Little change in stressed companies: Credit Suisse

While the share of debt was 41% at the quarter ended March, it is now at 38%

Anup Roy  |  Mumbai 

growth, investment, income, dividend, mutual fund, finance

Stressed are showing some minor signs of recovery, led by improved performance in the power sector and shedding off of stress assets in some firms, according to

In a sample of 3,700 companies, having of $540 billion, the brokerage finds that the share of in companies having interest cover of less than one (meaning whatever be the earnings won’t suffice to pay interest outgo) has improved marginally over the fourth quarter. While the share of was 41 per cent at the quarter ended March, it is now at 38 per cent. This is excluding If is included, the share of in such companies would go up to 40 per cent.

“Stress continues to be spread across sectors, with infra and construction, metals and telecom accounting for Rs 50 per cent of the stressed debt,” said Profitability of 3,700 companies in the sample, however, fell seven per cent year on year.

First Published: Sat, August 19 2017. 01:12 IST