From auto to banking, grumble of slowdown is getting louder for India Inc

The grumble of economic slowdown is getting louder for corporate India. The combined net profit of India’s top 1,470 listed companies ex-financials and energy contracted for the third consecutive quarter year-on-year (yoy) basis during April-June 2019 quarter while net sales growth hit a three-year low. In due course, this could cause financial trouble for many companies in the worst-affected sectors as interest liability continues to grow due to incremental borrowings in recent quarters.  

The companies’ combined net profit declined by 10.1 per cent yoy during June '19 quarter against 26.2 per cent yoy growth a year ago. (See the adjoining chart)

Companies’