Albert Einstein once said, “We cannot solve our problems with the same thinking we used when we created them.” Businesses in their aggression to grow wealth or in their failure to understand the storm that chases them, usually end up leveraging the entity. In recent times, companies that leveraged beyond their repayment ability had to undergo insolvency proceedings and some billionaire promoters returned home with empty pockets.
The BT500 rankings shows that despite past lessons, corporate debt is still on the rise. The total debt of India Inc.’s 15 most-indebted non-BFSI companies (excluding Reliance Industries, which turned net debt free in the September quarter using investments received in digital and retail businesses) increased by 15 per cent to ₹10 lakh crore in 2019/20, from ₹ 877,441 crore in 2018/19. Interest outgo jumped 28.8 per cent to ₹74,065 crore from ₹57,506 crore. However, there is improvement in companies’ cash and bank balance, which increased by 32.4 per cent to ₹41,841 crore from ₹31,603 crore.
Half of the 15 most-indebted companies are state-owned enterprises. This includes the likes of Bharat Petroleum and Hindustan Petroleum, which the government is looking to privatise. These companies cover a wide spectrum of industries — there are four steel companies, three each from power and oil sectors, two each from telecom and infrastructure, and one carmaker. Four of the 15 companies have a negative interest coverage ratio (ICR) as opposed to just one last year. ICR measures the number of times a company can cover its interest payment with available earnings..
Towering Troubles
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
"Moving to cloud helped us grow❞
What was the problem you were grappling with?
She's Got Time
MORE WOMEN ARE BECOMING WATCH CONNOISSEURS, SEEKING OUT BOTH JEWELLED AND TECHNICAL WATCHES FOR THEIR STYLE AND CRAFTSMANSHIP
RISING STAR
PARUL GULATI IS a name that's been steadily gaining prominence in the Indian entertainment industry after she appeared on season 2 of Shark Tank in 2023. She has become a multifaceted personality who effortlessly transitions between acting and entrepreneurship.
Building on a Legacy
WHEN ZAHABIYA KHORAKIWALA stepped into her role as Managing Director of Wockhardt Hospitals over a decade ago, she confronted formidable challenges that have since turned into achievements.
LEADER IN INNOVATION
AS FEDEX'S PRESIDENT (Middle East, Indian subcontinent and Africa), Kami Viswanathan has a lot on her plate.
WAITING IN THE WINGS
Here are those who missed out as they have not yet completed a year in office; they'll be strong contenders in 2025
A DECENT PROPOSAL
IN TODAY'S WORLD OF TRYING TO CREATE AN EQUITABLE SPACE, BOTH MEN AND WOMEN CONTRIBUTE TO THEIR HOUSEHOLDS. WOMEN ARE ENCOURAGED TO HAVE THEIR OWN SAVINGS POOL AND INVESTMENT ROUTINE. GIVEN THIS, HOW SHOULD FUTURE BRIDES APPROACH FINANCIAL PLANNING?
Women and the STEM Bias
EMPOWERING WOMEN IN STEM WILL NOT ONLY BENEFIT INDIVIDUALS, BUT ALSO STRENGTHEN THE ENTIRE INDUSTRY, DRIVING INNOVATION AND PROGRESS.
ROCKET WOMEN
WOMEN IN INDIA ARE NOT ONLY VENTURING INTO SPACE BUT ARE ALSO STARTING TO SPEARHEAD THE COUNTRY'S EFFORTS IN THE GLOBAL SPACE RACE.
ONE STEP FORWARD
THE NUMBER OF WOMEN INDEPENDENT DIRECTORS IS GROWING STEADILY, BUT IT'S A LONG WAY FROM GENDER PARITY. MUCH MORE NEEDS TO BE DONE TO BREAK THE GLASS CEILING IN BOARDROOMS.
