Krishna Defence & Allied Industries (NSE:KRISHNADEF) Interest Coverage : 5.81 (As of Sep. 2023)

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What is Krishna Defence & Allied Industries 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. Krishna Defence & Allied Industries's Operating Income for the six months ended in Sep. 2023 was ₹37.1 Mil. Krishna Defence & Allied Industries's Interest Expense for the six months ended in Sep. 2023 was ₹-6.4 Mil. Krishna Defence & Allied Industries's interest coverage for the quarter that ended in Sep. 2023 was 5.81. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Krishna Defence & Allied Industries's Interest Coverage or its related term are showing as below:

NSE:KRISHNADEF' s Interest Coverage Range Over the Past 10 Years
Min: 1.7 Med: 2.69 Max: 7.71
Current: 7.71

NSE:KRISHNADEF's Interest Coverage is ranked worse than
61.97% of 2293 companies
in the Industrial Products industry
Industry Median: 13.61 vs NSE:KRISHNADEF: 7.71

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

Krishna Defence & Allied Industries Interest Coverage Historical Data

The historical data trend for Krishna Defence & Allied Industries'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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Krishna Defence & Allied Industries Interest Coverage Chart

Krishna Defence & Allied Industries Annual Data

Trend

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

2.69

1.70

2.60

3.84

7.15

Krishna Defence & Allied Industries Semi-Annual Data
	Mar19	Mar20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Interest Coverage	Get a 7-Day Free Trial			2.58	5.88	4.32	10.14	5.81

Competitive Comparison of Krishna Defence & Allied Industries's Interest Coverage

For the Specialty Industrial Machinery subindustry, Krishna Defence & Allied Industries'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.

Krishna Defence & Allied Industries's Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Krishna Defence & Allied Industries's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Krishna Defence & Allied Industries's Interest Coverage falls into.

Krishna Defence & Allied Industries 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.

Krishna Defence & Allied Industries'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, Krishna Defence & Allied Industries's Interest Expense was ₹-10.2 Mil. Its Operating Income was ₹73.0 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹63.8 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	72.972	/	-10.205
	=	7.15

Krishna Defence & Allied Industries's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the six months ended in Sep. 2023, Krishna Defence & Allied Industries's Interest Expense was ₹-6.4 Mil. Its Operating Income was ₹37.1 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹32.7 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	37.056	/	-6.373
	=	5.81

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

Krishna Defence & Allied Industries (NSE:KRISHNADEF) 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 .

Krishna Defence & Allied Industries Interest Coverage Related Terms

Thank you for viewing the detailed overview of Krishna Defence & Allied Industries's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Krishna Defence & Allied Industries (NSE:KRISHNADEF) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Krishna Defence & Allied Industries Ltd (NSE:KRISHNADEF) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Vadivadi Road, 2nd Floor Office no.207, 208, Atlantis Heritage, Sarabhai campus, Vadodara, GJ, IND, 390023

Website

https://www.krishnaallied.com

Krishna Defence & Allied Industries Ltd develops, manufactures, and designs defence application products and kitchen and dairy equipment products. It manufactures and offers a wide range of products including Ballast Bricks, Improvised Explosive Device Containment Vessels, Automatic Tyre Killer, Crowd Control Barriers, Bulk milk cooler with thermal storage system, Cow Grooming Brush, Daal Cooker, Rice Storage Chute, Stainless Steel Milk Cans, Heat Recovery Unit, Bulk Cooking Equipment like Rice Cauldron, Ship Building Steel section and others. The company generates maximum revenue from the Defence Products segment.

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