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70% of Indian firms have cash to pay staff for 2 months: Study

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Median employee and interest payment costs are only 8% of operating revenue, said a report by EY At least 70% of Indian companies in the non-financial space may have enough cash to pay salaries to their employees for at least two months, despite the covid-19 pandemic deepening economic stress, consulting and audit firm EY indicated in a study, quoting data from analytics firm EMIS.

Median employee and interest payment costs are only 8% of operating revenue, excluding other fixed costs such as rent, said a 4 May report by EY, which analysed the levels of fixed costs of 8,700 top non-financial companies with a total operating revenue of ₹134 trillion. “The low employee cost may be the reason most private companies have enough cash to pay

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