A prolonged conflict in West Asia could shave nearly 200 basis points off India Inc’s operating profitability this fiscal, even as overall corporate credit quality remains resilient due to stronger balance sheets and sustained domestic demand, Crisil Ratings said on Monday.
In a stress test covering 34 sectors accounting for around 65% of its rated corporate debt, the ratings agency said companies are grappling with supply-chain disruptions, elevated fuel and freight costs, pricing pressures and a depreciating rupee as the geopolitical crisis stretches into its third month.
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