New Delhi: Welcoming the new year and saying goodbye to the old one is a celebratory affair indeed. But did India’s business world have a good year?
Perhaps not. In the years leading into 2022, companies had used low interest rates and surplus liquidity as an opportunity to bring down their debts and increase current assets.
However, rising commodity prices due to supply-side bottlenecks this year threw a spanner in the works. Mint analyzed the balance sheets of 2,345 BSE-listed companies, excluding those from banking and financial services, as of September 2022 to find out the big trends of this year. Borrowing More INDIAN COMPANIES had gone on a deleveraging spree during the pandemic, with debt declining 3.7% and 1.9% in the first half of 2020-21 and 2021-22, respectively.
But the trend has reversed. The aggregate debt of the sample of companies covered in the analysis jumped nearly 10% between 31 March and 30 September to ₹25.2 trillion.