Torrent Power (BOM:532779) ROCE % : 12.15% (As of Dec. 2023)

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What is Torrent Power 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. Torrent Power's annualized ROCE % for the quarter that ended in Dec. 2023 was 12.15%.

Torrent Power ROCE % Historical Data

The historical data trend for Torrent Power'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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Torrent Power ROCE % Chart

Torrent Power Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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10.72

7.21

12.34

6.26

18.37

Torrent Power 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															20.74	14.66	16.34	16.02	12.15

Torrent Power ROCE % Calculation

Torrent Power'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 )
	=	38445.6	/	( ( (250227 - 61476.7)	+	(299101.8 - 69300.3) )	/ 2 )
	=	38445.6	/	( (188750.3	+	229801.5)	/ 2 )
	=	38445.6	/	209275.9
	=	18.37 %

Torrent Power'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 )
	=	29953.6	/	( ( (319940.3 - 73315.6)	+	(0 - 0) )	/ 1 )
	=	29953.6	/	( ( 246624.7	+	0 )	/ 1 )
	=	29953.6	/	246624.7
	=	12.15 %

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

Torrent Power (BOM:532779) 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.

Torrent Power ROCE % Related Terms

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Torrent Power (BOM:532779) Business Description

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GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Torrent Power Ltd (BOM:532779) » Definitions » ROCE %

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TORNTPOWER:India

Address

Samanvay, 600, Tapovan, Ambawadi, Ahmedabad, GJ, IND, 380015

Website

https://www.torrentpower.com

Torrent Power Ltd is an Indian utility company engaged in the business of power generation, transmission, and distribution. Both by itself and through its subsidiaries, Torrent Power operates a portfolio of gas, combined cycle, coal, wind, and solar power plants. The company's gas-fired facilities constitute most of its energy-producing capacity. Torrent Power generates the vast majority of its revenue from the supply of power generated by its facilities and transmitted through its power grids to areas of Western and Northern India. Its sales are fairly evenly divided among residential, commercial, low tension and high tension consumers. The low tension customer class would include smaller manufacturing units, while high tension would be composed of heavier industrial entities.

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