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Borrowing costs bite: Interest-rate surge hurts corporate profits

Following the contribution of loans to the corporate bottom line for nearly two years after the outbreak of the pandemic, interest costs on those have begun to weigh on companies’ earnings.

The combined interest expenses of listed companies (ex-BFSI) were up 18.5 per cent year-on-year (YoY) in Q2FY23 as against an 8.8 per cent YoY decline in their combined operating profits during the period.