Official data shows that the borrowing of 17 construction and infrastructure (C&I) companies that are part of the BSE-500 index has risen more than their revenue and net profit during the last five years since 2008.
While borrowings of these firms rose a little over five times, to Rs 2.7 lakh crore since 2008, their revenue and cash profits rose only 2.5 times during the same period.
Borrowing of these firms account for 22.6 per cent of India IncÂ’s borrowings after 2008. However, their share in incremental revenue and cash profits is less than 8 per cent. These firms are said to have borrowed largely from state-run banks.
The slower growth of revenue and net profit may impede the ability of these firms to service debt, analysts opine.
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