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Mafatlal Industries (BOM:500264) Interest Coverage : 4.62 (As of Mar. 2025)


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What is Mafatlal Industries 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. Mafatlal Industries's Operating Income for the three months ended in Mar. 2025 was ₹104 Mil. Mafatlal Industries's Interest Expense for the three months ended in Mar. 2025 was ₹-23 Mil. Mafatlal Industries's interest coverage for the quarter that ended in Mar. 2025 was 4.62. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Mafatlal Industries's Interest Coverage or its related term are showing as below:

BOM:500264' s Interest Coverage Range Over the Past 10 Years
Min: 0.04   Med: 1.45   Max: 5.25
Current: 5.25


BOM:500264's Interest Coverage is ranked better than
50.96% of 726 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 5.015 vs BOM:500264: 5.25

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


Mafatlal Industries Interest Coverage Historical Data

The historical data trend for Mafatlal Industries'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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Mafatlal Industries Interest Coverage Chart

Mafatlal Industries Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 0.04 1.45 2.59 5.25

Mafatlal Industries Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.76 6.04 5.77 4.18 4.62

Competitive Comparison of Mafatlal Industries's Interest Coverage

For the Textile Manufacturing subindustry, Mafatlal Industries'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.


Mafatlal Industries's Interest Coverage Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Mafatlal Industries's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Mafatlal Industries's Interest Coverage falls into.


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Mafatlal Industries 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.

Mafatlal Industries's Interest Coverage for the fiscal year that ended in Mar. 2025 is calculated as

Here, for the fiscal year that ended in Mar. 2025, Mafatlal Industries's Interest Expense was ₹-110 Mil. Its Operating Income was ₹575 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹235 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2025 )/Interest Expense (A: Mar. 2025 )
=-1*575.4/-109.6
=5.25

Mafatlal Industries's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Mafatlal Industries's Interest Expense was ₹-23 Mil. Its Operating Income was ₹104 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹235 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*104/-22.5
=4.62

* 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.

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


Mafatlal Industries  (BOM:500264) 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 .


Mafatlal Industries Interest Coverage Related Terms

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


Mafatlal Industries Business Description

Traded in Other Exchanges
N/A
Address
H.T. Parekh Marg, Mafatlal House, 5th Floor, Backbay Reclamation, Mumbai, MH, IND, 400020
Mafatlal Industries Ltd operates in the textile with Textiles and Denim business units. It operates in both, the business-to-business (B2B) and the business-to-consumer (B2C) and retail sectors. Company has three segment Textile and Related Products, Digital Infrastructure and Consumer Durables and Others. The company provides polyester cotton, cotton white shirting business, cotton and viscose prints, and high-twist cotton voiles. The firm offers men's wear, including suitings, trousering, shirtings, and readymades; denim; women's wear, including prints, voiles, and nightwear; school uniforms; corporate uniforms; work uniforms; hospitality uniforms; medical uniforms; bed linen; bath towels; specialty fabrics, and ready-to-stitch.

Mafatlal Industries Headlines

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