Power Grid Of India (NSE:POWERGRID) Interest Coverage : 3.55 (As of Mar. 2024)

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What is Power Grid Of India 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. Power Grid Of India's Operating Income for the three months ended in Mar. 2024 was ₹68,400 Mil. Power Grid Of India's Interest Expense for the three months ended in Mar. 2024 was ₹-19,281 Mil. Power Grid Of India's interest coverage for the quarter that ended in Mar. 2024 was 3.55. The higher the ratio, the stronger the company's financial strength is.

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

NSE:POWERGRID' s Interest Coverage Range Over the Past 10 Years
Min: 1.59 Med: 2.08 Max: 3.06
Current: 3.06

NSE:POWERGRID's Interest Coverage is ranked worse than
58.48% of 448 companies
in the Utilities - Regulated industry
Industry Median: 3.78 vs NSE:POWERGRID: 3.06

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

Power Grid Of India Interest Coverage Historical Data

The historical data trend for Power Grid Of 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.

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Power Grid Of India Interest Coverage Chart

Power Grid Of India Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Interest Coverage

Get a 7-Day Free Trial

2.13

2.64

2.94

2.72

3.06

Power Grid Of India 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															3.08	3.12	2.83	2.83	3.55

Competitive Comparison of Power Grid Of India's Interest Coverage

For the Utilities - Regulated Electric subindustry, Power Grid Of 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.

Power Grid Of India's Interest Coverage Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Power Grid Of India's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Power Grid Of India's Interest Coverage falls into.

Power Grid Of 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.

Power Grid Of India'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, Power Grid Of India's Interest Expense was ₹-87,728 Mil. Its Operating Income was ₹268,076 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹1,051,295 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	268076.2	/	-87727.5
	=	3.06

Power Grid Of India's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Power Grid Of India's Interest Expense was ₹-19,281 Mil. Its Operating Income was ₹68,400 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹1,051,295 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	68400.1	/	-19281.3
	=	3.55

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

Power Grid Of India (NSE:POWERGRID) 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 .

Power Grid Of India Interest Coverage Related Terms

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

Power Grid Of India (NSE:POWERGRID) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Power Grid Corp Of India Ltd (NSE:POWERGRID) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

532898:India

Address

Saudamini, Plot No. 2, Sector 29, Gurgaon, HR, IND, 122 001

Website

https://www.powergrid.in

Power Grid Corp Of India Ltd is a state-owned electric utility company in India. The activities of the firm are operated through Transmission, Telecom, and Consultancy segments. Under the Transmission division, the company's principal business is the transmission of bulk power across different states of India. Whereas the Telecom division leverages firm's nationwide transmission infrastructure and operates as a neutral carrier in the point to point Bandwidth Leasing Business. The company is also involved in Consultancy business in which it provides in-house expertise in the Transmission, Distribution and Telecom sectors, including planning design, engineering, load dispatch, procurement management, financing, and other. Geographically all the activities are carried out in India.

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