Companies: India Inc sheds debt to boost ratings, valuations

0

The overall debt of NSE 500 companies, excluding finance and banks, rose 18 per cent, or Rs 4.88 lakh crore, to Rs 32.66 lakh crore in FY20.

Synopsis

Reliance Industries has reduced its gross debt by nearly Rs 1.21 lakh crore in FY21 to Rs 2.24 lakh crore, riding on a Rs 1.65 lakh crore aggregate fundraising through stake sales of its digital unit Jio Platforms and its retail arm Reliance Retail Ventures.

Mumbai: India Inc is using improved cash flows to cut debt for better ratings and equity valuations. This is despite widespread disruptions to business due to the Covid-19 pandemic.

Data compiled by ET show that 78 of 134 companies — excluding banks and finance firms — in the NSE 500 that have reported results so far reduced debt in the previous fiscal year.

Consequently, the aggregate debt of the 134 companies has fallen by Rs 2 lakh crore

  • GIFT ARTICLE
  • FONT SIZE
  • SAVE
  • PRINT
  • COMMENT

Sign in to read the full article

You’ve got this Prime Story as a Free Gift

Already a Member?

Special Offer on ET Prime

Subscribe to ET Prime – Get Flat 20% Off

View Plans

Special Offer on ET Prime

Subscribe to ET Prime – Get Flat 20% Off

View Plans

Special Offer on ET Prime

Subscribe to ET Prime – Get Flat 20% Off

View Plans

Why ?

  • Sharp Insight-rich, Indepth stories across 20+ sectors

  • Access the exclusive Economic Times stories, Editorial and Expert opinion

  • Clean experience with
    Minimal Ads

  • Comment & Engage with ET Prime community

  • Exclusive invites to Virtual Events with Industry Leaders

  • A trusted team of Journalists & Analysts who can best filter signal from noise

FOLLOW US ON GOOGLE NEWS

 

Read original article here

Denial of responsibility! Samachar Central is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave a comment