Going after working capital: SP Group firms' among most leveraged in India

The conglomerate had gross debt to equity ratio of 2.4x on an average during the year ended March this year, as against 0.82x on an average for top-listed companies, excluding financials and oil

The financial fiasco at Sterling & Wilson Solar, part of Shapoorji Pallonji Group (SP Group), was in the making for years as the group expanded rapidly in working capital-intensive sectors like construction, infrastructure, and solar projects. 

The group’s top five companies, including the main operating and holding company Shapoorji Pallonji & Co (SPCPL), reported an average gross debt to equity ratio of 2.4x during FY19. Adjusted for cash and equivalents on companies’ books, the net debt to equity improved to 2.04x at the end of March 2019, from 2.14x a year ago. 

This makes SP Group one of the most