Monday, March 17, 2025 | 12:56 AM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

Nearly 500 listed companies can't meet interest outgo from their earnings

The highest proportion of firms unable to meet their interest payments from earnings was 19.1 per cent in March 2017--the quarter after demonetisation.

illustration: ajaya mohanty
Premium

Illustration: Ajay Mohanty

Sachin P MampattaKrishna Kant Mumbai
A total of 484 listed non-financial companies have an interest coverage ratio lower than 1, indicating their earnings are not enough to meet their interest payments.  

The number works out to 16.3 per cent of a sample of 2,971 listed companies, excluding banks and financial institutions included in the sample. This is higher than the 14.9 per cent seen for a similar sample in September last year, but lower than the 17.1 per cent in March 2019 (see adjoining chart).

In all the 484 companies had a total outstanding debt of Rs 5.6 trillion at the end of September this

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in