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HDFC Bank Ltd (NYSE:HDB)
Net Margin
31.80% (As of Jun. 2014)

Net margin is calculated as net income divided by its revenue. HDFC Bank Ltd's net income for the three months ended in Jun. 2014 was $372 Mil. HDFC Bank Ltd's revenue for the three months ended in Jun. 2014 was $1,168 Mil. Therefore, HDFC Bank Ltd's net margin for the quarter that ended in Jun. 2014 was 31.80%.

HDB' s 10-Year Net Margin Range
Min: 14.18   Max: 131.56
Current: 30.11

14.18
131.56
HDB's Net Marginis ranked higher than
87% of the 1665 Companies
in the Global Banks - Regional - Asia industry.

( Industry Median: 21.71 vs. HDB: 30.11 )

Definition

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

HDFC Bank Ltd's Net Margin for the fiscal year that ended in Mar. 2014 is calculated as

Net Margin=Net Income (A: Mar. 2014 )/Revenue (A: Mar. 2014 )
=1314.41520565/4364.93885262
=30.11 %

HDFC Bank Ltd's Net Margin for the quarter that ended in Jun. 2014 is calculated as

Net Margin=Net Income (Q: Jun. 2014 )/Revenue (Q: Jun. 2014 )
=371.578807242/1168.49374334
=31.80 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company’s profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.

But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.


Related Terms

Net Income, Revenue, Cost of Goods Sold, Selling, General, & Admin. Expense, Research & Development, Depreciation, Depletion and Amortization, Interest Expense, Non-Recurring Items, Tax Expense


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

HDFC Bank Ltd Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
netmargin 27.3125.4821.0317.5014.1819.8426.5427.8127.8130.11

HDFC Bank Ltd Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
netmargin 24.1428.2722.6033.2120.5829.0626.5534.2925.8331.80
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