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OlaTech Solutions (BOM:543578) Interest Coverage : 14.17 (As of Mar. 2025)


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What is OlaTech Solutions 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. OlaTech Solutions's Operating Income for the six months ended in Mar. 2025 was ₹11.7 Mil. OlaTech Solutions's Interest Expense for the six months ended in Mar. 2025 was ₹-0.8 Mil. OlaTech Solutions's interest coverage for the quarter that ended in Mar. 2025 was 14.17. The higher the ratio, the stronger the company's financial strength is.

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

BOM:543578' s Interest Coverage Range Over the Past 10 Years
Min: 27.87   Med: 41.63   Max: 2260.67
Current: 27.87


BOM:543578's Interest Coverage is ranked better than
50.84% of 1672 companies
in the Software industry
Industry Median: 26.095 vs BOM:543578: 27.87

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


OlaTech Solutions Interest Coverage Historical Data

The historical data trend for OlaTech Solutions'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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OlaTech Solutions Interest Coverage Chart

OlaTech Solutions Annual Data
Trend Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Interest Coverage
Get a 7-Day Free Trial 34.86 239.00 41.05 42.20 27.87

OlaTech Solutions Semi-Annual Data
Mar20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only 24.59 71.18 32.93 37.62 14.17

Competitive Comparison of OlaTech Solutions's Interest Coverage

For the Information Technology Services subindustry, OlaTech Solutions'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.


OlaTech Solutions's Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, OlaTech Solutions's Interest Coverage distribution charts can be found below:

* The bar in red indicates where OlaTech Solutions's Interest Coverage falls into.


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OlaTech Solutions 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.

OlaTech Solutions'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, OlaTech Solutions's Interest Expense was ₹-2.0 Mil. Its Operating Income was ₹55.3 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹5.5 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2025 )/Interest Expense (A: Mar. 2025 )
=-1*55.262/-1.983
=27.87

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

Here, for the six months ended in Mar. 2025, OlaTech Solutions's Interest Expense was ₹-0.8 Mil. Its Operating Income was ₹11.7 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹5.5 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*11.694/-0.825
=14.17

* 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.


OlaTech Solutions  (BOM:543578) 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 .


OlaTech Solutions Interest Coverage Related Terms

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


OlaTech Solutions Business Description

Traded in Other Exchanges
N/A
Address
Thane-Belapur Road, Office No. 310, 3rd Floor, Rupa Solitaire, Millennium Business Park, Mahape, Navi Mumbai, MH, IND, 400 710
OlaTech Solutions Ltd is engaged in the business of Data Centre, Enterprise, Telecom, and IT software solutions in the Operations Support System and Business Support System segment. The company's software solutions are offered under the registered trademark Epiphany. It offers software solutions such as NOC tools, network monitoring, management and analytics, system integration services, telecom tower installation, network deployment, server virtualization services, IT equipment installation and management services, data center infrastructure management solutions, and others. The company has clients across different verticals such as Telcos, ISPs, Enterprises, Data Centre Service Providers, and Public Sector.

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