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HCL Technologies (NSE:HCLTECH) Interest Coverage : 34.88 (As of Mar. 2025)


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What is HCL Technologies 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. HCL Technologies's Operating Income for the three months ended in Mar. 2025 was ₹54,420 Mil. HCL Technologies's Interest Expense for the three months ended in Mar. 2025 was ₹-1,560 Mil. HCL Technologies's interest coverage for the quarter that ended in Mar. 2025 was 34.88. The higher the ratio, the stronger the company's financial strength is.

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

NSE:HCLTECH' s Interest Coverage Range Over the Past 10 Years
Min: 31.62   Med: 51.58   Max: 186.09
Current: 33.26


NSE:HCLTECH's Interest Coverage is ranked better than
52.89% of 1662 companies
in the Software industry
Industry Median: 27.9 vs NSE:HCLTECH: 33.26

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


HCL Technologies Interest Coverage Historical Data

The historical data trend for HCL Technologies'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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HCL Technologies Interest Coverage Chart

HCL Technologies Annual Data
Trend Jun15 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 41.06 50.80 52.36 36.21 33.26

HCL Technologies 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 29.38 25.10 40.93 35.07 34.88

Competitive Comparison of HCL Technologies's Interest Coverage

For the Information Technology Services subindustry, HCL Technologies'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.


HCL Technologies's Interest Coverage Distribution in the Software Industry

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

* The bar in red indicates where HCL Technologies's Interest Coverage falls into.


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HCL Technologies 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.

HCL Technologies'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, HCL Technologies's Interest Expense was ₹-6,440 Mil. Its Operating Income was ₹214,200 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹27,080 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2025 )/Interest Expense (A: Mar. 2025 )
=-1*214200/-6440
=33.26

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

Here, for the three months ended in Mar. 2025, HCL Technologies's Interest Expense was ₹-1,560 Mil. Its Operating Income was ₹54,420 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹27,080 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*54420/-1560
=34.88

* 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.


HCL Technologies  (NSE:HCLTECH) 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 .


HCL Technologies Interest Coverage Related Terms

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


HCL Technologies Business Description

Traded in Other Exchanges
Address
Technology Hub, Special Economic Zone, Plot No. 3A, Sector 126, Noida, UP, IND, 201304
HCL Technologies Ltd provides enterprises with IT solutions. It focuses on offering Digital, Internet of Things, Cloud, Automation, Cybersecurity, Infrastructure Management, and Engineering services to solve business problems for clients. It offers solutions to a variety of industries including Financial Services, Public Services, Consumer Services, Healthcare, and Manufacturing. It operates in three segments; IT and Business Services, Engineering and R&D Services, and HCl Software. The firm emphasizes consultation services for firms, intending to offer them digital and design solutions. The majority of the firm's revenue comes from the IT and Business Services segment. Geographically, it derives maximum revenue from America and the rest from Europe, India, and the Rest of the world.

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