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Tamil Nadu Newsprint & Papers (NSE:TNPL) Interest Coverage : 0.40 (As of Mar. 2025)


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What is Tamil Nadu Newsprint & Papers 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. Tamil Nadu Newsprint & Papers's Operating Income for the three months ended in Mar. 2025 was ₹212 Mil. Tamil Nadu Newsprint & Papers's Interest Expense for the three months ended in Mar. 2025 was ₹-524 Mil. Tamil Nadu Newsprint & Papers's interest coverage for the quarter that ended in Mar. 2025 was 0.40. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Tamil Nadu Newsprint & Papers Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

The historical rank and industry rank for Tamil Nadu Newsprint & Papers's Interest Coverage or its related term are showing as below:

NSE:TNPL' s Interest Coverage Range Over the Past 10 Years
Min: 0.39   Med: 1.95   Max: 5.06
Current: 0.57


NSE:TNPL's Interest Coverage is ranked worse than
89.22% of 204 companies
in the Forest Products industry
Industry Median: 4.46 vs NSE:TNPL: 0.57

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


Tamil Nadu Newsprint & Papers Interest Coverage Historical Data

The historical data trend for Tamil Nadu Newsprint & Papers'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.

Tamil Nadu Newsprint & Papers Interest Coverage Chart

Tamil Nadu Newsprint & Papers 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 0.39 1.14 5.06 2.13 0.57

Tamil Nadu Newsprint & Papers 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 1.57 1.44 0.86 - 0.40

Competitive Comparison of Tamil Nadu Newsprint & Papers's Interest Coverage

For the Paper & Paper Products subindustry, Tamil Nadu Newsprint & Papers'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.


Tamil Nadu Newsprint & Papers's Interest Coverage Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Tamil Nadu Newsprint & Papers's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Tamil Nadu Newsprint & Papers's Interest Coverage falls into.


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Tamil Nadu Newsprint & Papers 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.

Tamil Nadu Newsprint & Papers'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, Tamil Nadu Newsprint & Papers's Interest Expense was ₹-2,161 Mil. Its Operating Income was ₹1,240 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹6,850 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2025 )/Interest Expense (A: Mar. 2025 )
=-1*1240.3/-2161.3
=0.57

Tamil Nadu Newsprint & Papers's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Tamil Nadu Newsprint & Papers's Interest Expense was ₹-524 Mil. Its Operating Income was ₹212 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹6,850 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*211.8/-523.9
=0.40

* 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.


Tamil Nadu Newsprint & Papers  (NSE:TNPL) 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 .


Tamil Nadu Newsprint & Papers Interest Coverage Related Terms

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


Tamil Nadu Newsprint & Papers Business Description

Traded in Other Exchanges
Address
67, Mount Road, Guindy, Chennai, TN, IND, 600 032
Tamil Nadu Newsprint & Papers Ltd is engaged in the business of printing and writing paper. It operates in two segments Paper & Paper Board and Energy. Paper & Paper Board is involved in the Manufacturing and selling of Paper and Paper boards, and the Energy involved in the Generation of Power through TGs and Windmills for captive consumption and for export of power. Its products include Paper, Packaging Board, Cement, and Marketing Network.

Tamil Nadu Newsprint & Papers Headlines

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