Small companies are finding the going tough with sales and profits taking a big beating in the wake of demonetisation and implementation of Goods and Services Tax (GST). The RBI study said 726 small companies reported a 122.3 per cent plunge in EBIDTA (earnings before interest depreciation, taxation and amortisation) for the March quarter. EBIDTA of big companies rose by 2.1 per cent during the period, indicating that big corporates managed to weather demonetisation woes while small companies floundered. The GST implementation from July has further exacerbated the woes of small companies in the June quarter. Small companies bore the brunt of the GST regime with profits plunging as much as 78 per cent in the quarter ended June.

Source: Indian Express August 26, 2017 20:48 UTC