Sameera Agro and Infra (NSE:SAIFL) ROC % : 11.24% (As of Mar. 2024)

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What is Sameera Agro and Infra 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 %. Sameera Agro and Infra's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 11.24%.

As of today (2024-12-14), Sameera Agro and Infra's WACC % is 12.53%. Sameera Agro and Infra's ROC % is 19.69% (calculated using TTM income statement data). Sameera Agro and Infra generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

Sameera Agro and Infra ROC % Historical Data

The historical data trend for Sameera Agro and Infra'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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Sameera Agro and Infra ROC % Chart

Sameera Agro and Infra Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

ROC %

18.41

22.33

46.35

16.55

Sameera Agro and Infra Semi-Annual Data
	Mar21	Mar22	Mar23	Sep23	Mar24
ROC %	-	-	-	44.72	11.24

Sameera Agro and Infra ROC % Calculation

Sameera Agro and Infra'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 )
=	145.882 * ( 1 - 26.47% )	/	( (281.064	+	1015.137)	/ 2 )
=	107.2670346	/	648.1005
=	16.55 %

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	))
=	580.894	-	299.614	-	( 0.216	-	max(0, 360.835	-	573.759	+	0.216	))
=	281.064

	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	))
=	1115.169	-	98.669	-	( 1.363	-	max(0, 161.502	-	778.131	+	1.363	))
=	1015.137

Sameera Agro and Infra's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	103.45 * ( 1 - 26.46% )	/	( (338.083	+	1015.137)	/ 2 )
=	76.07713	/	676.61
=	11.24 %

where

	Invested Capital		(Q: Sep. 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	))
=	605.348	-	266.029	-	( 1.236	-	max(0, 316.07	-	598.393	+	1.236	))
=	338.083

	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	))
=	1115.169	-	98.669	-	( 1.363	-	max(0, 161.502	-	778.131	+	1.363	))
=	1015.137

Note: The Operating Income data used here is two times the semi-annual (Mar. 2024) data.

Sameera Agro and Infra (NSE:SAIFL) 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, Sameera Agro and Infra's WACC % is 12.53%. Sameera Agro and Infra's ROC % is 19.69% (calculated using TTM income statement data). Sameera Agro and Infra generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

Sameera Agro and Infra ROC % Related Terms

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Sameera Agro and Infra Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Sameera Agro and Infra Ltd (NSE:SAIFL) » Definitions » ROC %

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Traded in Other Exchanges

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Address

St. John’s Road, Unit No. 610, 6th Floor, Eden Amsri Square, Beside Apollo Hospital, Secunderabad, TG, IND, 500002

Website

https://www.sameerainfraprojects.com

Sameera Agro and Infra Ltd y is a multi-faceted infrastructure development and construction of Residential, Commercial spaces, Apartments, Townships, Multi storied complexes, Gated communities, Landscapes, Bridges, Flyovers, Subways, Alleys, Industrial parks, Laying of Water pipelines, Gas pipelines and other related works. Its business operations include development of real estate projects in the Residential, Commercial, plotting residential segment comprising apartment-type complexes, villas, Commercial complex, and Plotting Scheme largely catering to the small and medium customers and acquisition/operate medium sized properties.

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