HEC Infra Projects (NSE:HECPROJECT) Interest Coverage : 1.80 (As of Sep. 2023)

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What is HEC Infra Projects 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. HEC Infra Projects's Operating Income for the three months ended in Sep. 2023 was ₹12.7 Mil. HEC Infra Projects's Interest Expense for the three months ended in Sep. 2023 was ₹-7.0 Mil. HEC Infra Projects's interest coverage for the quarter that ended in Sep. 2023 was 1.80. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for HEC Infra Projects's Interest Coverage or its related term are showing as below:

NSE:HECPROJECT' s Interest Coverage Range Over the Past 10 Years
Min: 0.96 Med: 2.84 Max: 8.56
Current: 1.8

NSE:HECPROJECT's Interest Coverage is ranked worse than
81.83% of 1260 companies
in the Construction industry
Industry Median: 7.005 vs NSE:HECPROJECT: 1.80

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

HEC Infra Projects Interest Coverage Historical Data

The historical data trend for HEC Infra Projects'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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HEC Infra Projects Interest Coverage Chart

HEC Infra Projects Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Interest Coverage

Get a 7-Day Free Trial

2.37

1.75

2.36

0.96

2.79

HEC Infra Projects Quarterly Data
	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Dec20	Mar21	Sep21	Dec21	Mar22	Sep22	Mar23	Sep23	Mar24
Interest Coverage	Get a 7-Day Free Trial															-	1.22	N/A	1.80	N/A

Competitive Comparison of HEC Infra Projects's Interest Coverage

For the Engineering & Construction subindustry, HEC Infra Projects'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.

HEC Infra Projects's Interest Coverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, HEC Infra Projects's Interest Coverage distribution charts can be found below:

* The bar in red indicates where HEC Infra Projects's Interest Coverage falls into.

HEC Infra Projects 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.

HEC Infra Projects's Interest Coverage for the fiscal year that ended in Mar. 2024 is calculated as

Here, for the fiscal year that ended in Mar. 2024, HEC Infra Projects's Interest Expense was ₹-18.2 Mil. Its Operating Income was ₹50.9 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹246.2 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	50.925	/	-18.223
	=	2.79

HEC Infra Projects's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the three months ended in Sep. 2023, HEC Infra Projects's Interest Expense was ₹-7.0 Mil. Its Operating Income was ₹12.7 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹246.4 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	12.658	/	-7.025
	=	1.80

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

HEC Infra Projects (NSE:HECPROJECT) 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 .

HEC Infra Projects Interest Coverage Related Terms

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

HEC Infra Projects (NSE:HECPROJECT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » HEC Infra Projects Ltd (NSE:HECPROJECT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

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Address

Plot Cross Road, Sindhu Bhavan Road, Sigma-1 Corporates, Corporate House No. 6, Near Maan Party, Bodakdev, Ahmedabad, GJ, IND, 380054

Website

https://www.hecprojects.in

HEC Infra Projects Ltd is an Engineering, Procurement and Construction Company (EPC) Contractor in the Electro-Mechanical and Instrumentation Projects. The company services include switchyards; overhead transmission; substations, underground cable lying; Industrial and commercial electrification, battery energy storage system and mini / micro grid Solar projects water pumping stations; solar park; rooftop solar; indoor and outdoor lighting; security; fire alarm systems and others. It serves Steel, Chemical, Cement, Refineries, Petrochemicals, Gas and Oil Sector, Textile, Pharmaceuticals, Power-generation plants, Ports, Banks, Malls, Call Centers, Software Park; and other industries. It is engaged in the EPC Electro-Mechanical Project Business which is their only segment.

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