Corporates are reaping the benefits of declining interest rates and of swapping high-cost debt for low-cost debt. A Business Standard Research Bureau study of 1,040 companies showed they saved Rs 2,540 crore in the first nine months of the current financial year on account of lower interest rates.
Indeed, had it not been for the savings on interest costs, they would have reported a 11.23 per cent decline in net profits.
Many companies also replaced high-cost debt with new low-cost loans.