Indraprastha Gas (NSE:IGL) Interest Coverage : 152.19 (As of Mar. 2024)

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What is Indraprastha Gas 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. Indraprastha Gas's Operating Income for the three months ended in Mar. 2024 was ₹3,911 Mil. Indraprastha Gas's Interest Expense for the three months ended in Mar. 2024 was ₹-26 Mil. Indraprastha Gas's interest coverage for the quarter that ended in Mar. 2024 was 152.19. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Indraprastha Gas Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

NSE:IGL' s Interest Coverage Range Over the Past 10 Years
Min: 22.6 Med: 157.76 Max: 804.89
Current: 212.64

NSE:IGL's Interest Coverage is ranked better than
93.92% of 444 companies
in the Utilities - Regulated industry
Industry Median: 3.775 vs NSE:IGL: 212.64

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

Indraprastha Gas Interest Coverage Historical Data

The historical data trend for Indraprastha Gas'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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Indraprastha Gas Interest Coverage Chart

Indraprastha Gas Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Interest Coverage

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158.56

106.22

137.73

156.95

212.62

Indraprastha Gas Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															140.47	229.30	225.57	260.12	152.19

Competitive Comparison of Indraprastha Gas's Interest Coverage

For the Utilities - Regulated Gas subindustry, Indraprastha Gas'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.

Indraprastha Gas's Interest Coverage Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Indraprastha Gas's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Indraprastha Gas's Interest Coverage falls into.

Indraprastha Gas 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.

Indraprastha Gas'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, Indraprastha Gas's Interest Expense was ₹-92 Mil. Its Operating Income was ₹19,497 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹565 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	19497	/	-91.7
	=	212.62

Indraprastha Gas's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Indraprastha Gas's Interest Expense was ₹-26 Mil. Its Operating Income was ₹3,911 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹565 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	3911.2	/	-25.7
	=	152.19

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

Indraprastha Gas (NSE:IGL) 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 .

Indraprastha Gas Interest Coverage Related Terms

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

Indraprastha Gas (NSE:IGL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Indraprastha Gas Ltd (NSE:IGL) » Definitions » Interest Coverage

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532514:India

Address

IGL Bhawan, Plot Number 4, Community Centre, Sector-9, R K Puram, New Delhi, IND, 110022

Website

https://www.iglonline.net

Indraprastha Gas Ltd, or IGL, is an Indian utility company that derives nearly all of its revenue from the sale of natural gas. IGL supplies compressed natural gas (CNG) to the transport sector and piped natural gas (PNG) to domestic, industrial, and commercial sector customers. Most of the natural gas sold by IGL is in the form of compressed natural gas. CNG is an alternative to fossil fuels that is distributed from IGL's portfolio of fueling stations to power a variety of vehicles. The vast majority of these CNG stations are located in the Delhi and National Capital Regions. IGL distributes a significant amount of natural gas through its network of pipelines in Delhi and the National Capital Region, as well. The customers served by IGL's PNG business are primarily residential consumers.

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