Rising domestic demand coupled with slack utilization rates will help debt-burdened India Inc to draw some relief over the next two years as earnings will grow faster than debt, enabling them to meet higher demand without further investments, says a report.
“We foresee a profit upcycle for India Inc, as revenues expand but capital expenditure stays flat,” S&P Global Ratings said in a report today.
It sees the median corporate revenue increasing 12-14 percent over the next 24 months, or about 500 bps higher than the past three years’ average. Earnings should rise even faster than revenues, helping corporates continue the deleveraging trend seen over the last two years.
These growth expectations are anchored in continu…