Rama Telecom (NSE:RTL) Interest Coverage: 21.30 (As of Mar. 2025)


NSE:RTL Rama Telecom Ltd NSE:RTL
18 GF Score
Price ₹88.90
View Full Analysis

What is Rama Telecom Interest Coverage?

Rama Telecom NSE:RTL -1.77% 18 Interest Coverage is 21.30 as of Mar. 2025. GuruFocus rates NSE:RTL with a GF Score™ of 18/100. Among 284 Telecommunication Services companies, Rama Telecom ranks better than 78.17% on this metric.

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. Rama Telecom's Operating Income for the six months ended in Mar. 2025 was ₹50.0 Mil. Rama Telecom's Interest Expense for the six months ended in Mar. 2025 was ₹-2.3 Mil. Rama Telecom's interest coverage for the quarter that ended in Mar. 2025 was 21.30. The higher the ratio, the stronger the company's financial strength is.

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


NSE:RTL'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.

Rama Telecom  (NSE:RTL) 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 .

Rama Telecom Interest Coverage Related Terms

Rama Telecom Interest Coverage Historical Data

* Premium members only.

The historical data trend for Rama Telecom'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.

Rama Telecom Interest Coverage Chart

Rama Telecom Annual Data
Trend Mar22 Mar23 Mar24 Mar25
Interest Coverage
9.53 8.38 10.84 18.40

Rama Telecom Semi-Annual Data
Mar22 Mar23 Mar24 Sep24 Mar25
Interest Coverage N/A N/A N/A 14.11 21.30

NSE:RTL vs TMUS, VZ, T: Interest Coverage Comparison

For the Telecom Services subindustry, Rama Telecom'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.

Rama Telecom Interest Coverage vs Telecommunication Services Industry

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

* The bar in red indicates where Rama Telecom's Interest Coverage falls into.


NSE:RTL
18GF Score
Rama Telecom Ltd NSE:RTL
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Rama Telecom 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.

Rama Telecom'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, Rama Telecom's Interest Expense was ₹-3.9 Mil. Its Operating Income was ₹72.4 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹10.1 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2025 )/Interest Expense (A: Mar. 2025 )
=-1*72.4/-3.934
=18.40

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

Here, for the six months ended in Mar. 2025, Rama Telecom's Interest Expense was ₹-2.3 Mil. Its Operating Income was ₹50.0 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹10.1 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*50.04/-2.349
=21.30

* 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 21.30 mean?
Rama Telecom (NSE:RTL) has a Interest Coverage of 21.30 as of Mar. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Rama Telecom and its competitors. According to the industry distribution chart, Rama Telecom ranks #62 out of 284 companies in the Telecommunication Services industry, placing it in the top 21.8%.
Is Rama Telecom's Interest Coverage too high?
Rama Telecom's current Interest Coverage is 21.30. The Telecommunication Services industry median Interest Coverage is 4.69. Rama Telecom's value of 21.30 is 354.6% above this industry median. Based on the distribution chart, Rama Telecom ranks #62 out of 284 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Rama Telecom has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Rama Telecom's Interest Coverage compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Rama Telecom ranks #62 out of 284 companies for Interest Coverage. This places Rama Telecom in the top 22% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 4.69. Rama Telecom's value of 21.30 is 354.6% 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. Rama Telecom's current Interest Coverage of 21.30 is 354.6% 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 Rama Telecom 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. Rama Telecom's current Interest Coverage is 21.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rama Telecom stock overvalued right now?
Rama Telecom (NSE:RTL) has a current Interest Coverage of 21.30. The current Interest Coverage is 21.30 and 354.6% above the Telecommunication Services industry median of 4.69. Rama Telecom's overall GF Score™ is 18/100. 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 Rama Telecom (NSE:RTL), the current Interest Coverage is 21.30 as of Mar. 2025. 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.

Rama Telecom Business Description

Address Kamalalaya Centre 156A, Lenin Sarani, Room No-302, 3rd Floor, Kolkata, WB, IND, 700013
Rama Telecom Ltd is a technology-driven engineering company with expertise in optical fiber, providing end to end customized networking solutions in the telecom forefront. The company continuously supports its services to the Railways, Telecom, Petroleum and Airport sector. Its business services are provided to the Railway Sector and Telecom Sector. It operates in a single Business segment, which is the business of Trading & installation works of contractors. The company provides customized E2E networking solutions in the Telecom & Datacom forefront.
18GF Score

Get the complete analysis for NSE:RTL

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹88.90
Price