coimbatore moodys investors service has said that indian nonfinancial corporates that it rates will show modest improvement at their leverage levels underpinned by revenue and earnings growth the revenue and ebitda earnings before interest taxes depreciation and amortisation of nonfinancial corporates that we rate in india should grow 10 and 8 respectively for fiscal 2019 in the fiscal year ending march 2019 from a high base said laura acres a moodys managing directorthese companies reported strong financial results for fiscal 2018 with revenue and ebitda increasing 13 and 12 respectively the agency pointed out strong demand and production efficiencies will help the companies preserve their profitability against the backdrop of rising commodity prices said kaustubh chaubal a moodys vicepresident and senior credit officer and aggregate leverage for rated companies will fall modestly in fiscal 2019 he saidacquisitions and capital spending financed by debt will cause the debt levels of moodysrated companies to rise by 5 in fiscal 2019 nevertheless aggregate debtebitda will decline modestly to 24x from 25x helped by ebitda growth moodys said in its justreleased report on indian nonfinancial corporateshowever leverage for the telecommunications sectors will remain elevated on relentless competition which will in turn hurt profitability meanwhile continued capital spending will constrain free cash flow generation in the same industry it saidmetals and mining companies are taking on more debt to fund capital spending and acquisitions prompting a spike in leverage the agency stated as for revenue and ebitda growth several factors can limit these levels in particular high commodity prices will benefit the metals and mining and oil and gas sectors but are negative for enduser industries such as the auto chemicals and realestate sectors unless they can pass the higher costs to their customers moodys saidtightening regulations and trade tariffs globally will strain exportoriented sectors such as it services and auto but the weakening rupee will somewhat mute this impact and increasing compliance with environmental social and governance regulation will likely keep business costs high the agency said