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. Orissa Sponge Iron & Steel's
Operating Income
for the
six
months ended in Mar. 2025 was ₹176 Mil. Orissa Sponge Iron & Steel's Interest Expense for the
six
months ended in Mar. 2025 was ₹-261 Mil.
Orissa Sponge Iron & Steel's interest coverage for the quarter that ended in Mar. 2025 was 0.68.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Orissa Sponge Iron & Steel Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
The historical rank and industry rank for Orissa Sponge Iron & Steel's Interest Coverage or its related term are showing as below:
BOM:504864'
s Interest Coverage Range Over the Past 10 Years
Min: 0.68 Med: 131.58 Max: 262.47
Current: 0.68
BOM:504864's Interest Coverage is not ranked
in the Steel industry.
Industry Median: 4.445
vs BOM:504864: 0.68
Orissa Sponge Iron & Steel (BOM:504864) 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 .
Orissa Sponge Iron & Steel Interest Coverage Related Terms
Orissa Sponge Iron & Steel Interest Coverage Historical Data
* 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.
Orissa Sponge Iron & Steel Interest Coverage Chart
For the Steel subindustry, Orissa Sponge Iron & Steel'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.
Orissa Sponge Iron & Steel Interest Coverage vs Steel Industry
For the Steel industry and Basic Materials sector, Orissa Sponge Iron & Steel's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Orissa Sponge Iron & Steel's Interest Coverage falls into.
Orissa Sponge Iron & Steel 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:
* 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.
Orissa Sponge Iron & Steel (BOM:504864) has a Interest Coverage of 0.68 as of Mar. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Orissa Sponge Iron & Steel and its competitors. This is 99% below median its historical median of 131.58. Over the past decade, Orissa Sponge Iron & Steel's Interest Coverage has ranged from 0.68 to 262.47.
Is Orissa Sponge Iron & Steel's Interest Coverage too high?
Orissa Sponge Iron & Steel's current Interest Coverage of 0.68 is 99% below median its 10-year median of 131.58. Over the past 10 years, this metric has ranged from a low of 0.68 to a high of 262.47. The Steel industry median Interest Coverage is 4.45. Orissa Sponge Iron & Steel's value of 0.68 is 84.7% below this industry median.
How does Orissa Sponge Iron & Steel's Interest Coverage compare to NUE?
Orissa Sponge Iron & Steel's Interest Coverage of 0.68 can be compared against companies in the Steel industry. The industry median Interest Coverage is 4.45. Orissa Sponge Iron & Steel's value of 0.68 is 84.7% below this benchmark. Historically, Orissa Sponge Iron & Steel's own Interest Coverage has ranged from 0.68 to 262.47 over the past decade. While the company's 10-year median is 131.58 vs. the industry median of 4.45, Orissa Sponge Iron & Steel has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Steel company?
The median Interest Coverage among Steel companies is 4.45, based on 456 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Orissa Sponge Iron & Steel's current Interest Coverage of 0.68 is 84.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Orissa Sponge Iron & Steel and its competitors. For the Steel industry, the median Interest Coverage is 4.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Orissa Sponge Iron & Steel's current Interest Coverage is 0.68, which is 99% below median its own 10-year median of 131.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Orissa Sponge Iron & Steel stock overvalued right now?
Orissa Sponge Iron & Steel (BOM:504864) has a current Interest Coverage of 0.68. The current Interest Coverage is 0.68, which is 99% below median its 10-year median of 131.58 and 84.7% below the Steel industry median of 4.45. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Orissa Sponge Iron & Steel (BOM:504864), the current Interest Coverage is 0.68 as of Mar. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Orissa Sponge Iron & Steel Ltd is engaged in manufacturing and selling iron and steel. It mainly operates coal-based sponge iron plants, waste energy recovery-based power plants, and a billet-making plant. The Company's business activities falls within a single primary business segment which is Iron & Steel. The firm generates revenues through the sale of surplus power, and also involves in providing engineering and technical services. It operates a coal-based sponge iron plant, waste energy recovery-based power plants, and a billet-making plant.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BOM:504864 has been successfully added to your 