While the government is taking steps to improve the investment climate, the financial condition of infrastructure and metal companies hasn’t improved much in the last one year. Many stocks are in red. Interest coverage — Ebit to interest expenses — for infra companies dropped to 0.7x in FY15 from 0.9x in FY14 whereas debt-to-equity was up to 16.5 x from 14.5 x. While there has been some success in selling down assets by some infra conglomerates, sales are largely of cash generating assets.
