Abstract
Joshy Jacob and Prem Chander examine the nature and extent of the impact of economic slowdown on the financial performance, investments, and valuation of selected Indian firms. Findings indicate decline of the growth of revenues, profits, and investments. However, in some sectors the decline started much ahead of the crisis period, implying that the domestic demand fall is primarily the cause. It appears that the initial adverse impact that firms with more share of international revenues had is substantially offset by rupee depreciation. Capital investments by financially constrained firms appear to have declined more drastically. Leverage did not have much adverse impact on valuation, except for the firms with greater dependence on short-term and foreign currency debt.