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Shilpa Medicare (NSE:SHILPAMED) Interest Coverage : 3.31 (As of Mar. 2025)


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What is Shilpa Medicare 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. Shilpa Medicare's Operating Income for the three months ended in Mar. 2025 was ₹480 Mil. Shilpa Medicare's Interest Expense for the three months ended in Mar. 2025 was ₹-145 Mil. Shilpa Medicare's interest coverage for the quarter that ended in Mar. 2025 was 3.31. The higher the ratio, the stronger the company's financial strength is.

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

NSE:SHILPAMED' s Interest Coverage Range Over the Past 10 Years
Min: 1.49   Med: 35.24   Max: 51.32
Current: 2.7


NSE:SHILPAMED's Interest Coverage is ranked worse than
79.54% of 655 companies
in the Drug Manufacturers industry
Industry Median: 11.98 vs NSE:SHILPAMED: 2.70

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


Shilpa Medicare Interest Coverage Historical Data

The historical data trend for Shilpa Medicare'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.

* Premium members only.

Shilpa Medicare Interest Coverage Chart

Shilpa Medicare Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.50 3.07 - 1.49 2.70

Shilpa Medicare Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 1.79 1.96 2.26 4.42 3.31

Competitive Comparison of Shilpa Medicare's Interest Coverage

For the Drug Manufacturers - Specialty & Generic subindustry, Shilpa Medicare'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.


Shilpa Medicare's Interest Coverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Shilpa Medicare's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Shilpa Medicare's Interest Coverage falls into.


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Shilpa Medicare 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.

Shilpa Medicare'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, Shilpa Medicare's Interest Expense was ₹-755 Mil. Its Operating Income was ₹2,041 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹2,332 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2025 )/Interest Expense (A: Mar. 2025 )
=-1*2040.593/-755.329
=2.70

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

Here, for the three months ended in Mar. 2025, Shilpa Medicare's Interest Expense was ₹-145 Mil. Its Operating Income was ₹480 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹2,332 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*479.614/-144.939
=3.31

* 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.


Shilpa Medicare  (NSE:SHILPAMED) 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 .


Shilpa Medicare Interest Coverage Related Terms

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


Shilpa Medicare Business Description

Traded in Other Exchanges
Address
Hyderabad Road, Number 12-6-214/A-1, Shilpa House, Raichur, KA, IND, 584135
Shilpa Medicare Ltd is a specialty and generic drug manufacturer. The company's product range includes over 44 oncology and non-oncology APIs. It uses nano and micro technology in its drug identification and formulation. The operating segments of the company are Pharmaceutical products and services, which is the key revenue-generating segment; and Power sales. Geographically, the group derives revenue from India and Outside India, of which prime revenue is generated from India.

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