India Inc third quarter results belie turnaround hopes

Further, the interest coverage ratio- a gauge of a company\'s ability to cater interest costs of its outstanding debt - of the mid-caps remained unchanged whereas that of the largecap stocks dipped by 80 bps.

Generally, the operating performance of large-caps which have sizable production capacities, tend to get affected by higher raw material costs. On other hand, mid and small size companies that have to raise capital at a higher interest rate, see a decline in their net profits in a high interest rate environment. The increase in working capital requirement further jacks up their interest cost compared to large-caps.

For the analysis we bifurcated the set of companies according to their market-cap; companies with a market-cap of more than

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