Prakash Pipes (NSE:PPL) ROCE % : 39.62% (As of Dec. 2023)

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What is Prakash Pipes 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. Prakash Pipes's annualized ROCE % for the quarter that ended in Dec. 2023 was 39.62%.

Prakash Pipes ROCE % Historical Data

The historical data trend for Prakash Pipes'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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Prakash Pipes ROCE % Chart

Prakash Pipes Annual Data

Trend

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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69.00

29.16

31.66

32.04

35.49

Prakash Pipes Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															27.40	24.24	31.17	33.78	39.62

Prakash Pipes ROCE % Calculation

Prakash Pipes's annualized ROCE % for the fiscal year that ended in Mar. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	925.9	/	( ( (2965.4 - 573.8)	+	(3455.3 - 629.1) )	/ 2 )
	=	925.9	/	( (2391.6	+	2826.2)	/ 2 )
	=	925.9	/	2608.9
	=	35.49 %

Prakash Pipes's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	1273.2	/	( ( (4039.8 - 826.3)	+	(0 - 0) )	/ 1 )
	=	1273.2	/	( ( 3213.5	+	0 )	/ 1 )
	=	1273.2	/	3213.5
	=	39.62 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Prakash Pipes (NSE:PPL) 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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Prakash Pipes (NSE:PPL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Prakash Pipes Ltd (NSE:PPL) » Definitions » ROCE %

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542684:India

Address

Srivan, Bijwasan, New Delhi, IND, 110061

Website

https://www.prakashplastics.in

Prakash Pipes Ltd is engaged in the manufacture of PVC pipes and fittings. It offers a products such as Agri Pipes, Column Pipes, Plumbing Pipes, Casing Pipes, SWR Pipes, Garden Pipes and their related Fittings. Its segments are PVC Pipe and fitting and Flexible Packaging. It generates the majority of its revenue from PVC Pipe and fitting.