 "debt")
In what could be music to lenders’ ears, corporate India is showing initial signs of improvement in its debt-servicing capability.
The combined interest coverage ratio (ICR) for 1,822 companies, excluding financial and oil and gas companies, improved to 3.95 times during the first quarter of 2017-18 from 3.85 times in the previous quarter. This means corporate India’s operating profit is now enough to cover nearly four quarters of interest payments. However, on a year-on-year basis, the ICR worsened. The ratio was 4.1 during the April-June 2016 period. The ratio of operating profit and interest obligation, the ICR indicates a company’s debt-servicing
