RPP Infra Projects (NSE:RPPINFRA) Interest Coverage : 2.82 (As of Dec. 2023)

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What is RPP Infra Projects Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. RPP Infra Projects's Operating Income for the three months ended in Dec. 2023 was ₹91 Mil. RPP Infra Projects's Interest Expense for the three months ended in Dec. 2023 was ₹-32 Mil. RPP Infra Projects's interest coverage for the quarter that ended in Dec. 2023 was 2.82. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for RPP Infra Projects's Interest Coverage or its related term are showing as below:

NSE:RPPINFRA' s Interest Coverage Range Over the Past 10 Years
Min: 1.59 Med: 2.6 Max: 5.47
Current: 5.47

NSE:RPPINFRA's Interest Coverage is ranked worse than
56.3% of 1270 companies
in the Construction industry
Industry Median: 7.07 vs NSE:RPPINFRA: 5.47

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

RPP Infra Projects Interest Coverage Historical Data

The historical data trend for RPP Infra Projects's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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RPP Infra Projects Interest Coverage Chart

RPP Infra Projects Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

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3.21

2.83

2.56

1.59

2.63

RPP Infra Projects Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															1.92	5.88	4.49	8.91	2.82

Competitive Comparison of RPP Infra Projects's Interest Coverage

For the Engineering & Construction subindustry, RPP Infra Projects's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

RPP Infra Projects's Interest Coverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, RPP Infra Projects's Interest Coverage distribution charts can be found below:

* The bar in red indicates where RPP Infra Projects's Interest Coverage falls into.

RPP Infra Projects Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

RPP Infra Projects's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, RPP Infra Projects's Interest Expense was ₹-140 Mil. Its Operating Income was ₹369 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹319 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	369.1	/	-140.2
	=	2.63

RPP Infra Projects's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, RPP Infra Projects's Interest Expense was ₹-32 Mil. Its Operating Income was ₹91 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	90.6	/	-32.1
	=	2.82

The higher the ratio, the stronger the company's Financial Strength is.

RPP Infra Projects (NSE:RPPINFRA) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

RPP Infra Projects Interest Coverage Related Terms

Thank you for viewing the detailed overview of RPP Infra Projects's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

RPP Infra Projects (NSE:RPPINFRA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » RPP Infra Projects Ltd (NSE:RPPINFRA) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

533284:India

Address

Kodambakkam High Road, MKM Chambers, No. 42, Third Floor, Nungambakkam, Chennai, TN, IND, 600034

Website

http://www.rppipl.com

RPP Infra Projects Ltd is engaged in engineering and construction activities. The firm is engaged in construction across multiple infrastructure verticals like roads, buildings, industrial structures, power, irrigation and water management. It focuses on buildings, water management, and infrastructure. The company operates in India. It is engaged in one business segment, namely Construction and Infrastructure Development. The company derives the majority of its revenue from India and from Infrastructure operations.

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