Bharat Road Network (BOM:540700) Interest Coverage : 0.87 (As of Dec. 2023)

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What is Bharat Road Network Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Bharat Road Network's Operating Income for the three months ended in Dec. 2023 was ₹409 Mil. Bharat Road Network's Interest Expense for the three months ended in Dec. 2023 was ₹-471 Mil. Bharat Road Network's interest coverage for the quarter that ended in Dec. 2023 was 0.87. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Bharat Road Network Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

The historical rank and industry rank for Bharat Road Network's Interest Coverage or its related term are showing as below:

BOM:540700' s Interest Coverage Range Over the Past 10 Years
Min: 0.32 Med: 0.79 Max: 1.08
Current: 0.75

BOM:540700's Interest Coverage is ranked worse than
93.82% of 1262 companies
in the Construction industry
Industry Median: 7.095 vs BOM:540700: 0.75

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Bharat Road Network Interest Coverage Historical Data

The historical data trend for Bharat Road Network's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Bharat Road Network Interest Coverage Chart

Bharat Road Network Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

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0.70

0.79

0.32

0.79

Bharat Road Network Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															0.09	1.56	0.94	-	0.87

Competitive Comparison of Bharat Road Network's Interest Coverage

For the Infrastructure Operations subindustry, Bharat Road Network's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.

Bharat Road Network's Interest Coverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, Bharat Road Network's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Bharat Road Network's Interest Coverage falls into.

Bharat Road Network Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Bharat Road Network's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, Bharat Road Network's Interest Expense was ₹-1,806 Mil. Its Operating Income was ₹1,426 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹12,394 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	1425.605	/	-1805.814
	=	0.79

Bharat Road Network's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Bharat Road Network's Interest Expense was ₹-471 Mil. Its Operating Income was ₹409 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	409.466	/	-470.938
	=	0.87

The higher the ratio, the stronger the company's Financial Strength is.

Bharat Road Network (BOM:540700) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Bharat Road Network Interest Coverage Related Terms

Thank you for viewing the detailed overview of Bharat Road Network's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Bharat Road Network (BOM:540700) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Bharat Road Network Ltd (BOM:540700) » Definitions » Interest Coverage

Traded in Other Exchanges

BRNL:India

Address

86C Topsia Road (South), Vishwakarma Building, 5th Floor (northeast block),, Kolkata, WB, IND, 700091

Website

https://www.brnl.in

Bharat Road Network Ltd is a road BOT company in India which is focused on the development, implementation, operation and maintenance of roads and highways projects. The company is a developer and operator of highways, roads and related projects on a BOT basis. The company is involved in the development, operation and maintenance of national and state highways in several states in India with experience of managing projects in the states of Uttar Pradesh, Kerala, Haryana, Madhya Pradesh, Maharashtra and Odisha through partnerships with experienced EPC players in the local space where the project is located.

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