Nu Tek India (NSE:NUTEK) Interest Coverage: 6.64 (As of Jun. 2017)


What is Nu Tek India Interest Coverage?

Nu Tek India NSE:NUTEK Interest Coverage is 6.64 as of Jun. 2017.

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. Nu Tek India's Operating Income for the three months ended in Jun. 2017 was ₹11.4 Mil. Nu Tek India's Interest Expense for the three months ended in Jun. 2017 was ₹-1.7 Mil. Nu Tek India's interest coverage for the quarter that ended in Jun. 2017 was 6.64. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Nu Tek India's Interest Coverage or its related term are showing as below:


NSE:NUTEK's Interest Coverage is not ranked *
in the Telecommunication Services industry.
Industry Median: 4.685
* Ranked among companies with meaningful Interest Coverage only.

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

Nu Tek India  (NSE:NUTEK) 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 .

Nu Tek India Interest Coverage Related Terms

Nu Tek India Interest Coverage Historical Data

* Premium members only.

The historical data trend for Nu Tek India'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.

Nu Tek India Interest Coverage Chart

Nu Tek India Annual Data
Trend Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.53 0.00 0.81 0.00 0.00

Nu Tek India Quarterly Data
Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
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 0.00 0.00 1.48 7.59 6.64

NSE:NUTEK vs TWER, FULO, CUEN: Interest Coverage Comparison

For the Telecom Services subindustry, Nu Tek India'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.

Nu Tek India Interest Coverage vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Nu Tek India's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Nu Tek India's Interest Coverage falls into.


Nu Tek India 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.

Nu Tek India's Interest Coverage for the fiscal year that ended in Mar. 2017 is calculated as

Here, for the fiscal year that ended in Mar. 2017, Nu Tek India's Interest Expense was ₹-16.1 Mil. Its Operating Income was ₹-8.7 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹24.4 Mil.

Nu Tek India did not have earnings to cover the interest expense.

Nu Tek India's Interest Coverage for the quarter that ended in Jun. 2017 is calculated as

Here, for the three months ended in Jun. 2017, Nu Tek India's Interest Expense was ₹-1.7 Mil. Its Operating Income was ₹11.4 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹0.0 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2017 )/Interest Expense (Q: Jun. 2017 )
=-1*11.447/-1.725
=6.64

* 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.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 6.64 mean?
Nu Tek India (NSE:NUTEK) has a Interest Coverage of 6.64 as of Jun. 2017. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nu Tek India and its competitors.
Is Nu Tek India's Interest Coverage too high?
Nu Tek India's current Interest Coverage is 6.64. The Telecommunication Services industry median Interest Coverage is 4.69. Nu Tek India's value of 6.64 is 41.7% above this industry median.
How does Nu Tek India's Interest Coverage compare to TWER and FULO?
Nu Tek India's Interest Coverage of 6.64 can be compared against companies in the Telecommunication Services industry. The industry median Interest Coverage is 4.69. Nu Tek India's value of 6.64 is 41.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Telecommunication Services company?
The median Interest Coverage among Telecommunication Services companies is 4.69, based on 284 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nu Tek India's current Interest Coverage of 6.64 is 41.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nu Tek India and its competitors. For the Telecommunication Services industry, the median Interest Coverage is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nu Tek India's current Interest Coverage is 6.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nu Tek India stock overvalued right now?
Nu Tek India (NSE:NUTEK) has a current Interest Coverage of 6.64. The current Interest Coverage is 6.64 and 41.7% above the Telecommunication Services industry median of 4.69. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Nu Tek India (NSE:NUTEK), the current Interest Coverage is 6.64 as of Jun. 2017. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Nu Tek India Business Description

Address B-27, Infocity, Sector - 34, Gurgaon, HR, IND, 122001
Nu Tek India Ltd is an India based company. It is a telecom infrastructure services company providing solutions for wireless and fixed telecom networks. The business operates in various segments that include Turnkey Site Build, which provides site identification and designing, to installation of towers and other ancillary passive equipment; Active Equipment Implementations, which provide services like installation, commissioning and integration of active telecom equipment for wireless, wire-line and optical technologies; Technical Support Services, which provide services in high-end telecom engineering; and Operations and Maintenance; which provide maintenance services for passive telecom infrastructure.