Happy Forgings (NSE:HAPPYFORGE) Interest Coverage : 33.50 (As of Mar. 2025)

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What is Happy Forgings 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. Happy Forgings's Operating Income for the three months ended in Mar. 2025 was ₹820 Mil. Happy Forgings's Interest Expense for the three months ended in Mar. 2025 was ₹-24 Mil. Happy Forgings's interest coverage for the quarter that ended in Mar. 2025 was 33.50. The higher the ratio, the stronger the company's financial strength is.

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

NSE:HAPPYFORGE' s Interest Coverage Range Over the Past 10 Years
Min: 11.1 Med: 27.41 Max: 43.76
Current: 43.76

NSE:HAPPYFORGE's Interest Coverage is ranked better than
68.52% of 2281 companies
in the Industrial Products industry
Industry Median: 15.91 vs NSE:HAPPYFORGE: 43.76

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

Happy Forgings Interest Coverage Historical Data

The historical data trend for Happy Forgings'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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Happy Forgings Interest Coverage Chart

Happy Forgings Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

Mar25

Interest Coverage

11.10

30.46

24.42

27.41

43.76

Happy Forgings Quarterly Data
	Mar21	Mar22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25
Interest Coverage	Get a 7-Day Free Trial							94.14	57.94	54.72	38.37	33.50

Competitive Comparison of Happy Forgings's Interest Coverage

For the Metal Fabrication subindustry, Happy Forgings'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.

Happy Forgings's Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Happy Forgings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Happy Forgings's Interest Coverage falls into.

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Happy Forgings 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.

Happy Forgings'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, Happy Forgings's Interest Expense was ₹-75 Mil. Its Operating Income was ₹3,296 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2025 )	/	Interest Expense (A: Mar. 2025 )
	=	-1	*	3296.366	/	-75.333
	=	43.76

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

Here, for the three months ended in Mar. 2025, Happy Forgings's Interest Expense was ₹-24 Mil. Its Operating Income was ₹820 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2025 )	/	Interest Expense (Q: Mar. 2025 )
	=	-1	*	819.884	/	-24.473
	=	33.50

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

Happy Forgings (NSE:HAPPYFORGE) 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 .

Happy Forgings Interest Coverage Related Terms

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

Happy Forgings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Happy Forgings Ltd (NSE:HAPPYFORGE) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

544057:India

Address

H.B 220, Post Office - Rajgarh, Village Dugri, Ludhiana, PB, IND, 141 421

Website

https://www.happyforgingsltd.com

Happy Forgings Ltd is a manufacturer specializing in designing and manufacturing heavy forgings and high-precision machined components. The company manufactures, designs, and tests various products such as crankshafts, front axle carriers, steering knuckles, differential housings, transmission parts, pinion shafts, suspension products, and valve bodies for different industries and customers. The Company business comprises only the Forging segment where the company sells forged products comprising of forgings and machined components for the automotive and industrial sectors. The company generates the majority of its revenue within India.

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