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GMR Power and Urban Infra (NSE:GMRP&UI) ROIC % : 8.04% (As of Mar. 2025)


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What is GMR Power and Urban Infra 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 %. GMR Power and Urban Infra's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2025 was 8.04%.

As of today (2025-06-29), GMR Power and Urban Infra's WACC % is 17.48%. GMR Power and Urban Infra's ROIC % is 6.55% (calculated using TTM income statement data). GMR Power and Urban Infra earns returns that do not match up to its cost of capital. It will destroy value as it grows.


GMR Power and Urban Infra ROIC % Historical Data

The historical data trend for GMR Power and Urban Infra'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.

GMR Power and Urban Infra ROIC % Chart

GMR Power and Urban Infra Annual Data
Trend Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
ROIC %
Get a 7-Day Free Trial 0.79 2.87 0.48 9.75 6.56

GMR Power and Urban Infra Quarterly Data
Mar20 Sep20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 7.42 7.38 7.12 5.40 8.04

Competitive Comparison of GMR Power and Urban Infra's ROIC %

For the Thermal Coal subindustry, GMR Power and Urban Infra'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.


GMR Power and Urban Infra's ROIC % Distribution in the Other Energy Sources Industry

For the Other Energy Sources industry and Energy sector, GMR Power and Urban Infra's ROIC % distribution charts can be found below:

* The bar in red indicates where GMR Power and Urban Infra's ROIC % falls into.


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GMR Power and Urban Infra ROIC % Calculation

GMR Power and Urban Infra's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2025 is calculated as:

ROIC % (A: Mar. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2024 ) + Invested Capital (A: Mar. 2025 ))/ count )
=10833.4 * ( 1 - 2.16% )/( (174552.1 + 148692.8)/ 2 )
=10599.39856/161622.45
=6.56 %

where

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))
=194687 - 57592.8 - ( 7865.9 - max(0, 94886.1 - 57428.2+7865.9))
=174552.1

Invested Capital(A: Mar. 2025 )
=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))
=169867.3 - 11935.1 - ( 34490.7 - max(0, 62935.2 - 72174.6+34490.7))
=148692.8

GMR Power and Urban Infra's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2025 is calculated as:

ROIC % (Q: Mar. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2024 ) + Invested Capital (Q: Mar. 2025 ))/ count )
=11413.6 * ( 1 - -4.73% )/( (0 + 148692.8)/ 1 )
=11953.46328/148692.8
=8.04 %

where

Invested Capital(Q: Mar. 2025 )
=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))
=169867.3 - 11935.1 - ( 34490.7 - max(0, 62935.2 - 72174.6+34490.7))
=148692.8

Note: The Operating Income data used here is four times the quarterly (Mar. 2025) 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.


GMR Power and Urban Infra  (NSE:GMRP&UI) 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, GMR Power and Urban Infra's WACC % is 17.48%. GMR Power and Urban Infra's ROIC % is 6.55% (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.


GMR Power and Urban Infra ROIC % Related Terms

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GMR Power and Urban Infra Business Description

Traded in Other Exchanges
Address
New Udaan Bhawan, Opposite Terminal 3, Indira Gandhi International Airport, Bandra East, New Delhi, IND, 110037
GMR Power and Urban Infra Ltd is an infrastructure development that has excelled in creating mega Infrastructure projects globally. The group owns, develops, operates, and manages airports, energy utilities, highways, and urban infrastructure facilities. The group has four reportable segments: Power, Roads, EPC, and Others. The prime source of revenue is the Power segment which involves the generation of power and provision of related services and exploration and mining activities.

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