India Inc's EBITDA to shrink 24% in FY21 due to Covid disruptions: Moody's

Moody's said recovery will gather pace in the third quarter of fiscal 2021 (Q3Fy21) as the lifting of lockdown releases pent-up demand and helps to normalise economic conditions

Global rating agency Moody’s on Friday said that the aggregate EBITDA of Indian companies is expected to decline by 24 per cent in fiscal 2021 due to coronavirus disruptions.

The credit quality will also weaken across rated Indian non-financial corporates due to the outbreak as a slowing economy dampens consumer confidence and business activity.

“Aggregate EBITDA for the 22 rated companies will fall 24 per cent and debt/EBITDA leverage will increase to around 4.0x in fiscal 2021,” said Abhinav Mishra, a Moody’s Associate Analyst in a new report.

Moody’s said recovery will gather pace in the third quarter of fiscal