Pyramid Technoplast (BOM:543969) ROC % : 8.10% (As of Sep. 2024)

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What is Pyramid Technoplast ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Pyramid Technoplast's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 8.10%.

As of today (2024-12-13), Pyramid Technoplast's WACC % is 12.72%. Pyramid Technoplast's ROC % is 10.66% (calculated using TTM income statement data). Pyramid Technoplast earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Pyramid Technoplast ROC % Historical Data

The historical data trend for Pyramid Technoplast'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.

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Pyramid Technoplast ROC % Chart

Pyramid Technoplast Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

11.71

19.82

22.64

21.16

13.47

Pyramid Technoplast Quarterly Data
	Mar20	Mar21	Mar22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial							14.97	11.61	11.53	11.66	8.10

Pyramid Technoplast ROC % Calculation

Pyramid Technoplast's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2024 is calculated as:

	ROC % (A: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2023 )	+	Invested Capital (A: Mar. 2024 ))	/ count )
=	377.037 * ( 1 - 26.83% )	/	( (1671.781	+	2423.416)	/ 2 )
=	275.8779729	/	2047.5985
=	13.47 %

where

	Invested Capital		(A: Mar. 2023 )
=	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	))
=	2257.814	-	528.11	-	( 57.923	-	max(0, 942.668	-	1515.116	+	57.923	))
=	1671.781

	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	))
=	3033.201	-	450.394	-	( 159.391	-	max(0, 714.496	-	1852.494	+	159.391	))
=	2423.416

Pyramid Technoplast's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	300.012 * ( 1 - 26.1% )	/	( (0	+	2736.852)	/ 1 )
=	221.708868	/	2736.852
=	8.10 %

where

	Invested Capital		(Q: Jun. 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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

	Invested Capital		(Q: Sep. 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	))
=	3282.869	-	423.51	-	( 122.507	-	max(0, 816.679	-	1799.047	+	122.507	))
=	2736.852

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

Pyramid Technoplast (BOM:543969) 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, Pyramid Technoplast's WACC % is 12.72%. Pyramid Technoplast's ROC % is 10.66% (calculated using TTM income statement data). Pyramid Technoplast 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.

Pyramid Technoplast ROC % Related Terms

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Pyramid Technoplast Business Description

Industry

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PYRAMID:India

Address

Rani Sati Marg, Office No. 2, Second Floor, Shah Trade Center, Near W.E. Highway, Malad East, Mumbai, MH, IND, 400 067

Website

https://www.pyramidtechnoplast.com

Pyramid Technoplast Ltd is an industrial packaging company engaged in the business of manufacturing polymer-based molded products (Polymer Drums) mainly used by chemical, agrochemical, specialty chemical and pharmaceutical companies for their packaging requirements. It is one of the leading manufacturers of rigid Intermediate Bulk Containers (IBC) in India manufacturing 1,000-litre capacity IBC. IBCs are industrial-grade containers engineered for the mass handling, transport, and storage of liquids, semi-solids, pastes, or solids. The company uses blow molding technology to manufacture Polymer Drums and IBCs.

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