VL Infraprojects (NSE:VLINFRA) Interest Coverage : 5.17 (As of Mar. 2024)

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What is VL Infraprojects 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. VL Infraprojects's Operating Income for the six months ended in Mar. 2024 was ₹52 Mil. VL Infraprojects's Interest Expense for the six months ended in Mar. 2024 was ₹-10 Mil. VL Infraprojects's interest coverage for the quarter that ended in Mar. 2024 was 5.17. The higher the ratio, the stronger the company's financial strength is.

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

NSE:VLINFRA' s Interest Coverage Range Over the Past 10 Years
Min: 2.12 Med: 3.04 Max: 6.06
Current: 6.06

NSE:VLINFRA's Interest Coverage is ranked worse than
55.24% of 1327 companies
in the Construction industry
Industry Median: 7.24 vs NSE:VLINFRA: 6.06

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

VL Infraprojects Interest Coverage Historical Data

The historical data trend for VL Infraprojects'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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VL Infraprojects Interest Coverage Chart

VL Infraprojects Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

Interest Coverage

2.12

2.57

3.51

6.06

VL Infraprojects Semi-Annual Data
	Mar21	Mar22	Mar23	Sep23	Mar24
Interest Coverage	N/A	N/A	N/A	7.30	5.17

Competitive Comparison of VL Infraprojects's Interest Coverage

For the Engineering & Construction subindustry, VL Infraprojects'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.

VL Infraprojects's Interest Coverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, VL Infraprojects's Interest Coverage distribution charts can be found below:

* The bar in red indicates where VL Infraprojects's Interest Coverage falls into.

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VL Infraprojects 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.

VL Infraprojects'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, VL Infraprojects's Interest Expense was ₹-17 Mil. Its Operating Income was ₹104 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹21 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2024 )	/	Interest Expense (A: Mar. 2024 )
	=	-1	*	104.142	/	-17.184
	=	6.06

VL Infraprojects's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the six months ended in Mar. 2024, VL Infraprojects's Interest Expense was ₹-10 Mil. Its Operating Income was ₹52 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹21 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	51.747	/	-10.008
	=	5.17

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

VL Infraprojects (NSE:VLINFRA) 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 .

VL Infraprojects Interest Coverage Related Terms

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

VL Infraprojects Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » VL Infraprojects Ltd (NSE:VLINFRA) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Near Vakil saheb Bridge Bopal, Office at 716, Shivalik Satyamev, Ahmedabad, GJ, IND, 380058

Website

https://www.vlil.in

VL Infraprojects Ltd provides designing, construction, and commissioning of various types of government projects especially in water infrastructure and irrigation segment. It is engaged in executing water supply and sewerage infrastructure projects mainly involving the procurement of pipes and their laying, joining, and commissioning with backward integration including all allied civil engineering works like construction of civil work, pumping stations and installation of electro-mechanical equipment's (pumping machinery) for distribution of water supply from the river to household. The company also provide operations & maintenance services for water distribution pipelines.

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