Texmaco Rail & Engineering (NSE:TEXRAIL) Interest Coverage : 2.53 (As of Mar. 2025)

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What is Texmaco Rail & Engineering 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. Texmaco Rail & Engineering's Operating Income for the three months ended in Mar. 2025 was ₹867 Mil. Texmaco Rail & Engineering's Interest Expense for the three months ended in Mar. 2025 was ₹-343 Mil. Texmaco Rail & Engineering's interest coverage for the quarter that ended in Mar. 2025 was 2.53. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Texmaco Rail & Engineering's Interest Coverage or its related term are showing as below:

NSE:TEXRAIL' s Interest Coverage Range Over the Past 10 Years
Min: 0.81 Med: 1.78 Max: 3.09
Current: 2.92

NSE:TEXRAIL's Interest Coverage is ranked worse than
71.24% of 838 companies
in the Transportation industry
Industry Median: 6.05 vs NSE:TEXRAIL: 2.92

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

Texmaco Rail & Engineering Interest Coverage Historical Data

The historical data trend for Texmaco Rail & Engineering'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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Texmaco Rail & Engineering Interest Coverage Chart

Texmaco Rail & Engineering Annual Data

Trend

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Mar25

Interest Coverage

Get a 7-Day Free Trial

1.88

2.00

1.56

1.70

3.09

Texmaco Rail & Engineering 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															2.70	2.58	3.01	3.45	2.53

Competitive Comparison of Texmaco Rail & Engineering's Interest Coverage

For the Railroads subindustry, Texmaco Rail & Engineering'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.

Texmaco Rail & Engineering's Interest Coverage Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Texmaco Rail & Engineering's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Texmaco Rail & Engineering's Interest Coverage falls into.

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Texmaco Rail & Engineering 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.

Texmaco Rail & Engineering'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, Texmaco Rail & Engineering's Interest Expense was ₹-1,372 Mil. Its Operating Income was ₹4,241 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹3,711 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2025 )	/	Interest Expense (A: Mar. 2025 )
	=	-1	*	4241.159	/	-1371.848
	=	3.09

Texmaco Rail & Engineering's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Texmaco Rail & Engineering's Interest Expense was ₹-343 Mil. Its Operating Income was ₹867 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹3,711 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2025 )	/	Interest Expense (Q: Mar. 2025 )
	=	-1	*	867.129	/	-343.363
	=	2.53

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

Texmaco Rail & Engineering (NSE:TEXRAIL) 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 .

Texmaco Rail & Engineering Interest Coverage Related Terms

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

Texmaco Rail & Engineering Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Texmaco Rail & Engineering Ltd (NSE:TEXRAIL) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

533326:India

Address

Belgharia, 24 Paragnas (North), Kolkata, WB, IND, 700 056

Website

https://www.texmaco.in

Texmaco Rail & Engineering Ltd is engaged in the manufacturing, selling, and providing services for Rail and Rail related products. It manufactures and supplies different types of rail wagons, and various components such as brake levers, snow plows, loco components, draw bars, bogie frames, etc. The company also provides services related to railway infrastructure and operates a steel foundry that produces various steel castings and products for the railway industry. Its business segments are; Heavy Engineering Division; Steel Foundry Division; and Rail EPC. The maximum revenue is derived from its Freight Car Division which manufactures and supplies railway freight cars, loco components, loco shells, and steel castings. Geographically, the company derives revenue predominantly from India.

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