Debt load, soaring losses slow down India's retail juggernaut

Contrary to the general perception that organised retail has the potential to capture dominant market share by wiping out kirana stores and generate huge profits, a closer look at the balance sheets of India’s seven listed retailers in the last five years suggests a long haul. While these firms posted cumulative losses or somewhat modest profits in the last five years, one indicator is common: Their debts have galloped as the firms have ratcheted up scale. As a result, the debt-equity ratio of these companies has become quite steep.

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