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VVIP Infratech (BOM:544219) Interest Coverage : 12.86 (As of Mar. 2025)


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What is VVIP Infratech 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. VVIP Infratech's Operating Income for the six months ended in Mar. 2025 was ₹343 Mil. VVIP Infratech's Interest Expense for the six months ended in Mar. 2025 was ₹-27 Mil. VVIP Infratech's interest coverage for the quarter that ended in Mar. 2025 was 12.86. The higher the ratio, the stronger the company's financial strength is.

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

BOM:544219' s Interest Coverage Range Over the Past 10 Years
Min: 0.01   Med: 3.44   Max: 14.19
Current: 14.19


BOM:544219's Interest Coverage is ranked better than
63.38% of 1327 companies
in the Construction industry
Industry Median: 7.24 vs BOM:544219: 14.19

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


VVIP Infratech Interest Coverage Historical Data

The historical data trend for VVIP Infratech'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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VVIP Infratech Interest Coverage Chart

VVIP Infratech Annual Data
Trend Mar21 Mar22 Mar23 Mar24 Mar25
Interest Coverage
0.01 0.70 3.44 7.20 14.19

VVIP Infratech Semi-Annual Data
Mar21 Mar22 Mar23 Sep23 Mar24 Sep24 Mar25
Interest Coverage Get a 7-Day Free Trial N/A 9.48 5.43 15.50 12.86

Competitive Comparison of VVIP Infratech's Interest Coverage

For the Engineering & Construction subindustry, VVIP Infratech'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.


VVIP Infratech's Interest Coverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, VVIP Infratech's Interest Coverage distribution charts can be found below:

* The bar in red indicates where VVIP Infratech's Interest Coverage falls into.


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VVIP Infratech 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.

VVIP Infratech'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, VVIP Infratech's Interest Expense was ₹-54 Mil. Its Operating Income was ₹763 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹618 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2025 )/Interest Expense (A: Mar. 2025 )
=-1*762.997/-53.765
=14.19

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

Here, for the six months ended in Mar. 2025, VVIP Infratech's Interest Expense was ₹-27 Mil. Its Operating Income was ₹343 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹618 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*342.91/-26.662
=12.86

* 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.


VVIP Infratech  (BOM:544219) 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 .


VVIP Infratech Interest Coverage Related Terms

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


VVIP Infratech Business Description

Traded in Other Exchanges
N/A
Address
Fifth Floor, VVIP Style, National Highway-58 Raj Nagar Extension, Ghaziabad, UP, IND, 201017
VVIP Infratech Ltd is an infrastructure company in India. It is engaged in the business of construction of Infrastructure Projects such as Sewer, Sewer Treatment plants, Water Tanks, Water treatment plants, Road sector development, Electrification Development, Transmission and Distribution Infrastructure, and real estate sector. The company is working on projects in the states of Uttar Pradesh, Uttarakhand, NCR Delhi and other northern Parts of India.

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