Hindustan Construction Co (NSE:HCC) ROCE % : 29.57% (As of Sep. 2024)

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What is Hindustan Construction Co ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Hindustan Construction Co's annualized ROCE % for the quarter that ended in Sep. 2024 was 29.57%.

Hindustan Construction Co ROCE % Historical Data

The historical data trend for Hindustan Construction Co's ROCE % 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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Hindustan Construction Co ROCE % Chart

Hindustan Construction Co Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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42.22

3.81

72.72

19.42

32.86

Hindustan Construction Co Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															34.02	57.83	65.13	20.25	29.57

Hindustan Construction Co ROCE % Calculation

Hindustan Construction Co's annualized ROCE % for the fiscal year that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2024 )		(A: Mar. 2023 )		(A: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2024 )		(A: Mar. 2023 )		(A: Mar. 2024 )
	=	15303.2	/	( ( (131781 - 70202.6)	+	(90593.8 - 59022.2) )	/ 2 )
	=	15303.2	/	( (61578.4	+	31571.6)	/ 2 )
	=	15303.2	/	46575
	=	32.86 %

Hindustan Construction Co's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	10466.4	/	( ( (0 - 0)	+	(100074.8 - 64683.4) )	/ 1 )
	=	10466.4	/	( ( 0	+	35391.4 )	/ 1 )
	=	10466.4	/	35391.4
	=	29.57 %

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

Hindustan Construction Co (NSE:HCC) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

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Hindustan Construction Co Business Description

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GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Hindustan Construction Co Ltd (NSE:HCC) » Definitions » ROCE %

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500185:India

Address

Lal Bahadur Shastri Marg, Hincon House, C-101, 1st Floor, 247 Park, Vikhroli (West), Mumbai, MH, IND, 400083

Website

https://www.hccindia.com

Hindustan Construction Co Ltd is engaged in the EPC(Engineering, Procurement, and Construction) Business. It is involved in high-value projects that span across diverse sectors such as transportation, power, marine projects, irrigation and water supply, special buildings and industrial plants. Its business segments include Engineering and Construction, which is the key revenue driver; Infrastructure; Real Estate; and others.