India Inc's FY21 debt-equity ratio at 6-yr low on massive deleveraging move

Analysts expect a further reduction in the current financial year, helping companies lower interest cost and thereby boosting profitability

India Inc has taken a big leap towards repairing their balance sheet with debt-to-equity ratio dropping to lowest level six years at 0.59 in 2020-21. Analysts expect a further reduction in the ongoing financial year, helping companies lower interest cost and thereby boosting profitability. The debt-equity ratio for listed firms fell from 0.73 in FY20 to 0.59 in FY21. The decline was underpinned by 7 per cent year-on-year decline in net debt in FY21. “FY21 would mark the year where corporates focused on profitability, cash flow management, and balance sheet deleveraging to manage the fallout of the COVID-19 pandemic,” said