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Bhagiradha Chemicals & Industries (BOM:531719) ROIC % : 2.41% (As of Dec. 2024)


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What is Bhagiradha Chemicals & Industries ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Bhagiradha Chemicals & Industries's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2024 was 2.41%.

As of today (2025-04-06), Bhagiradha Chemicals & Industries's WACC % is 13.72%. Bhagiradha Chemicals & Industries's ROIC % is 4.27% (calculated using TTM income statement data). Bhagiradha Chemicals & Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Bhagiradha Chemicals & Industries ROIC % Historical Data

The historical data trend for Bhagiradha Chemicals & Industries's ROIC % 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.

* Premium members only.

Bhagiradha Chemicals & Industries ROIC % Chart

Bhagiradha Chemicals & Industries Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.24 13.98 16.64 14.60 5.26

Bhagiradha Chemicals & Industries Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.64 6.94 4.61 2.96 2.41

Competitive Comparison of Bhagiradha Chemicals & Industries's ROIC %

For the Agricultural Inputs subindustry, Bhagiradha Chemicals & Industries's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Bhagiradha Chemicals & Industries's ROIC % Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Bhagiradha Chemicals & Industries's ROIC % distribution charts can be found below:

* The bar in red indicates where Bhagiradha Chemicals & Industries's ROIC % falls into.


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Bhagiradha Chemicals & Industries ROIC % Calculation

Bhagiradha Chemicals & Industries's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2024 is calculated as:

ROIC % (A: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2023 ) + Invested Capital (A: Mar. 2024 ))/ count )
=320.857 * ( 1 - 32.32% )/( (3773.321 + 4480.64)/ 2 )
=217.1560176/4126.9805
=5.26 %

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))
=4469.141 - 666.405 - ( 29.415 - max(0, 1007.525 - 2282.535+29.415))
=3773.321

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))
=5760.44 - 795.577 - ( 484.223 - max(0, 1255.197 - 2802.802+484.223))
=4480.64

Bhagiradha Chemicals & Industries's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2024 is calculated as:

ROIC % (Q: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2024 ) + Invested Capital (Q: Dec. 2024 ))/ count )
=222.184 * ( 1 - 35.28% )/( (5962.344 + 0)/ 1 )
=143.7974848/5962.344
=2.41 %

where

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))
=8333.574 - 719.417 - ( 1651.813 - max(0, 1564.013 - 4538.539+1651.813))
=5962.344

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

* 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.


Bhagiradha Chemicals & Industries  (BOM:531719) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Bhagiradha Chemicals & Industries's WACC % is 13.72%. Bhagiradha Chemicals & Industries's ROIC % is 4.27% (calculated using TTM income statement data).


Be Aware

Like ROE % and ROA %, ROIC % 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.


Bhagiradha Chemicals & Industries ROIC % Related Terms

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Bhagiradha Chemicals & Industries Business Description

Traded in Other Exchanges
Address
Road Number 2, 8-2-269/S/3/A, Plot Number 3, Sagar Society, Banjara Hills, Hyderabad, TG, IND, 500 034
Bhagiradha Chemicals & Industries Ltd is an India-based company engaged in manufacturing agrochemical products. The company operates only in one business segment viz. manufacturing and sales of crop protection chemicals. The company manufactures insecticides, herbicides, fungicides, plant growth regulators as well as intermediates. Its Insecticides include Chlorpyrifos, Chlopyrifos-methyl, Buprofezin, and others. Fungicide includes Azoxystrobin whereas Herbicide consists of Imazethapyr, Clodinafop-propargyl, Cloquintocet-mexyl. The company sells its products in India and the international market.

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