APAC Ex-Japan & China Corporates Analyst, Finsights Research

Nandini Vijayaraghavan, CFA

APAC Ex-Japan & China Corporates Analyst

Thematic (Sector/Industry)

India Industrials / Thematic (Sector/Industry)

<p>The much awaited Reserve Bank of India quarterly data release indicates that private sector corporates reported almost flat revenues and an improvement in EBITDA Margin  during 3Q 2016-17, when demonetisation was announced! Banks were expectedly flush with liquidity, but credit growth has slowed down. While the Indian corporate sector seems to have maintained its performance during this challenging quarter, it continues to face long term challenges such as a moderately high level of corporate indebtedness, high non performing loans, an uncompetitive corporate tax rate, sub-optimal infrastructure, challenging business environment and corruption. </p>

The much awaited Reserve Bank of India quarterly data release indicates that private sector corporates reported almost flat revenues and an improvement in EBITDA Margin  during 3Q 2016-17, when demonetisation was announced! Banks were expectedly flush with liquidity, but credit growth has slowed down. While the Indian corporate sector seems to have maintained its performance during this challenging quarter, it continues to face long term challenges such as a moderately high level of corporate indebtedness, high non performing loans, an uncompetitive corporate tax rate, sub-optimal infrastructure, challenging business environment and corruption. 

India Inc. Appears To Have Emerged Unscathed From Demonetisation; But Challenges Remain