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Emami Paper Mills (BOM:533208) Interest Coverage : 1.16 (As of Mar. 2025)


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What is Emami Paper Mills 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. Emami Paper Mills's Operating Income for the three months ended in Mar. 2025 was ₹187 Mil. Emami Paper Mills's Interest Expense for the three months ended in Mar. 2025 was ₹-161 Mil. Emami Paper Mills's interest coverage for the quarter that ended in Mar. 2025 was 1.16. 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. Emami Paper Mills Ltd interest coverage is 1.48, which is low.

The historical rank and industry rank for Emami Paper Mills's Interest Coverage or its related term are showing as below:

BOM:533208' s Interest Coverage Range Over the Past 10 Years
Min: 1.18   Med: 1.82   Max: 3.82
Current: 1.48


BOM:533208's Interest Coverage is ranked worse than
74.02% of 204 companies
in the Forest Products industry
Industry Median: 4.46 vs BOM:533208: 1.48

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


Emami Paper Mills Interest Coverage Historical Data

The historical data trend for Emami Paper Mills'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.

* Premium members only.

Emami Paper Mills Interest Coverage Chart

Emami Paper Mills 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 1.18 3.82 3.05 2.62 1.48

Emami Paper Mills 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 3.20 2.15 1.65 1.02 1.16

Competitive Comparison of Emami Paper Mills's Interest Coverage

For the Paper & Paper Products subindustry, Emami Paper Mills'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.


Emami Paper Mills's Interest Coverage Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Emami Paper Mills's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Emami Paper Mills's Interest Coverage falls into.


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Emami Paper Mills 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.

Emami Paper Mills'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, Emami Paper Mills's Interest Expense was ₹-612 Mil. Its Operating Income was ₹905 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹1,945 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2025 )/Interest Expense (A: Mar. 2025 )
=-1*904.8/-611.9
=1.48

Emami Paper Mills's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Emami Paper Mills's Interest Expense was ₹-161 Mil. Its Operating Income was ₹187 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹1,945 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*186.7/-160.5
=1.16

* 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.


Emami Paper Mills  (BOM:533208) 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 .


Emami Paper Mills Interest Coverage Related Terms

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


Emami Paper Mills Business Description

Traded in Other Exchanges
Address
687, Anandapur, 1st Floor, E.M. Bypass, Kolkata, WB, IND, 700107
Emami Paper Mills Ltd is engaged in the manufacturing of paper and paper products. It offers various papers and paper products including newsprint, writing and printing paper, and multilayer-coated board used in pharmaceuticals, healthcare, fast-moving consumer goods, consumer durable goods, and food product industries. The company derives revenue from the sale of paper and paperboard.

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