Orissa Sponge Iron & Steel (BOM:504864) ROC %: 2.64% (As of Mar. 2025)


What is Orissa Sponge Iron & Steel ROC %?

Orissa Sponge Iron & Steel BOM:504864 ROC % is 2.64% as of Mar. 2025. The stock has 8 warning signs investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Orissa Sponge Iron & Steel's annualized return on capital (ROC %) for the quarter that ended in Mar. 2025 was 2.64%.

As of today (2026-07-02), Orissa Sponge Iron & Steel's WACC % is 10.57%. Orissa Sponge Iron & Steel's ROC % is 2.64% (calculated using TTM income statement data). Orissa Sponge Iron & Steel earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Orissa Sponge Iron & Steel  (BOM:504864) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Orissa Sponge Iron & Steel's WACC % is 10.57%. Orissa Sponge Iron & Steel's ROC % is 2.64% (calculated using TTM income statement data). Orissa Sponge Iron & Steel earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Orissa Sponge Iron & Steel ROC % Related Terms

Orissa Sponge Iron & Steel ROC % Historical Data

* Premium members only.

The historical data trend for Orissa Sponge Iron & Steel's ROC % 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.

Orissa Sponge Iron & Steel ROC % Chart

Orissa Sponge Iron & Steel Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -4.09 -2.38 2.43 -3.81 2.64

Orissa Sponge Iron & Steel Semi-Annual Data
Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
ROC % 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 -4.09 -2.38 2.43 -3.81 2.64

Orissa Sponge Iron & Steel ROC % Calculation

Orissa Sponge Iron & Steel's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2025 is calculated as:

ROC % (A: Mar. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2024 ) + Invested Capital (A: Mar. 2025 ))/ count )
=176.392 * ( 1 - 0% )/( (6078.211 + 7309.182)/ 2 )
=176.392/6693.6965
=2.64 %

where

Invested Capital(A: Mar. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=6040.435 - 1234.45 - ( 4.889 - max(0, 2269.08 - 996.854+4.889))
=6078.211

Invested Capital(A: Mar. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=7580.466 - 2228.54 - ( 6.297 - max(0, 4145.821 - 2188.565+6.297))
=7309.182

Orissa Sponge Iron & Steel's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2025 is calculated as:

ROC % (Q: Mar. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2024 ) + Invested Capital (Q: Mar. 2025 ))/ count )
=176.392 * ( 1 - 0% )/( (6078.211 + 7309.182)/ 2 )
=176.392/6693.6965
=2.64 %

where

Invested Capital(Q: Mar. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=6040.435 - 1234.45 - ( 4.889 - max(0, 2269.08 - 996.854+4.889))
=6078.211

Invested Capital(Q: Mar. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=7580.466 - 2228.54 - ( 6.297 - max(0, 4145.821 - 2188.565+6.297))
=7309.182

Note: The Operating Income data used here is one times the annual (Mar. 2025) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of 2.64% mean?
Orissa Sponge Iron & Steel (BOM:504864) has a ROC % of 2.64% as of Mar. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Orissa Sponge Iron & Steel and its competitors.
Is Orissa Sponge Iron & Steel's ROC % too high?
Orissa Sponge Iron & Steel's current ROC % is 2.64%. The Steel industry median ROC % is 2.52. Orissa Sponge Iron & Steel's value of 2.64% is 4.8% above this industry median.
How does Orissa Sponge Iron & Steel's ROC % compare to NUE?
Orissa Sponge Iron & Steel's ROC % of 2.64% can be compared against companies in the Steel industry. The industry median ROC % is 2.52. Orissa Sponge Iron & Steel's value of 2.64% is 4.8% 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 ROC % for a Steel company?
The median ROC % among Steel companies is 2.52, based on 621 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Orissa Sponge Iron & Steel's current ROC % of 2.64% is 4.8% 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Orissa Sponge Iron & Steel and its competitors. For the Steel industry, the median ROC % is 2.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Orissa Sponge Iron & Steel's current ROC % is 2.64%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Orissa Sponge Iron & Steel stock overvalued right now?
Orissa Sponge Iron & Steel (BOM:504864) has a current ROC % of 2.64%. The current ROC % is 2.64% and 4.8% above the Steel industry median of 2.52. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Orissa Sponge Iron & Steel (BOM:504864), the current ROC % is 2.64% 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.

Orissa Sponge Iron & Steel Business Description

Address A 201, First Floor, Okhla Industrial Area, Phase I, New Delhi, IND, 110020
Orissa Sponge Iron & Steel Ltd is engaged in manufacturing and selling iron and steel. It mainly operates coal-based sponge iron plants, waste energy recovery-based power plants, and a billet-making plant. The Company's business activities falls within a single primary business segment which is Iron & Steel. The firm generates revenues through the sale of surplus power, and also involves in providing engineering and technical services. It operates a coal-based sponge iron plant, waste energy recovery-based power plants, and a billet-making plant.