Viviana Power Tech (NSE:VIVIANA) ROC % : 26.23% (As of Mar. 2024)

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What is Viviana Power Tech 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 %. Viviana Power Tech's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 26.23%.

As of today (2025-03-27), Viviana Power Tech's WACC % is 12.73%. Viviana Power Tech's ROC % is 23.87% (calculated using TTM income statement data). Viviana Power Tech 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.

Viviana Power Tech ROC % Historical Data

The historical data trend for Viviana Power Tech'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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Viviana Power Tech ROC % Chart

Viviana Power Tech Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

18.60

14.68

24.22

19.30

23.74

Viviana Power Tech Semi-Annual Data
	Mar20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24
ROC %	Get a 7-Day Free Trial			18.12	24.85	14.40	21.06	26.23

Viviana Power Tech ROC % Calculation

Viviana Power Tech'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 )
=	125.359 * ( 1 - 26.24% )	/	( (303.461	+	475.517)	/ 2 )
=	92.4647984	/	389.489
=	23.74 %

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	))
=	339.965	-	35.897	-	( 0.607	-	max(0, 139.45	-	260.958	+	0.607	))
=	303.461

	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	))
=	523.2	-	47.32	-	( 0.363	-	max(0, 260.209	-	366.025	+	0.363	))
=	475.517

Viviana Power Tech'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 )
=	154.444 * ( 1 - 27.06% )	/	( (383.303	+	475.517)	/ 2 )
=	112.6514536	/	429.41
=	26.23 %

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	))
=	452.287	-	67.773	-	( 1.211	-	max(0, 222.475	-	371.287	+	1.211	))
=	383.303

	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	))
=	523.2	-	47.32	-	( 0.363	-	max(0, 260.209	-	366.025	+	0.363	))
=	475.517

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

Viviana Power Tech (NSE:VIVIANA) 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, Viviana Power Tech's WACC % is 12.73%. Viviana Power Tech's ROC % is 23.87% (calculated using TTM income statement data). Viviana Power Tech 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.

Viviana Power Tech ROC % Related Terms

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Viviana Power Tech Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Viviana Power Tech Ltd (NSE:VIVIANA) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

Behind McDonald, Sama-Savli Road, 313-315, Orchid Plaza, Vadodara, GJ, IND, 390024

Website

https://www.vivianagroup.in

Viviana Power Tech Ltd is engaged in the business of Power Transmission, Distribution, and Industrial EPC space projects (Engineering, Procurement, and construction). The company provides a wide range of services such as Power Transmission, EHV substation, Testing and Commissioning of sub-station and Transmission, Power Distribution Network Establishment, Underground Cable laying, and upgrade and modification of existing power systems.

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