The list of financially stressed corporate entities grew longer in 2016-17 despite a general improvement in corporate profitability.  Nearly 11 per cent of the country’s largest listed companies, excluding banks and financial companies, could not service interest payments on their loans in 2016-17, up from nine per cent in 2015-16. These companies accounted for around a fifth of all gross corporate debt at the end of 2016-17. In all, 85 companies had inadequate profits — operating profits lower than interest obligations — in 2016-17, up from 67 companies in 2015-16.

The list of financially stressed corporate entities grew longer in 2016-17 despite a general improvement in corporate profitability.  Nearly 11 per cent of the country’s largest listed companies, excluding banks and financial companies, could not service interest payments on their loans in 2016-17, up from nine per cent in 2015-16. These companies accounted for around a fifth of all gross corporate debt at the end of 2016-17. In all, 85 companies had inadequate profits — operating profits lower than interest obligations — in 2016-17, up from 67 companies in 2015-16.