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Gensol Engineering (BOM:542851) Operating Income : ₹1,534 Mil (TTM As of Mar. 2024)


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What is Gensol Engineering Operating Income?

Gensol Engineering's Operating Income for the three months ended in Mar. 2024 was ₹548 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was ₹1,534 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Gensol Engineering's Operating Income for the three months ended in Mar. 2024 was ₹548 Mil. Gensol Engineering's Revenue for the three months ended in Mar. 2024 was ₹3,988 Mil. Therefore, Gensol Engineering's Operating Margin % for the quarter that ended in Mar. 2024 was 13.74%.

Good Sign:

Gensol Engineering Ltd operating margin is expanding. Margin expansion is usually a good sign.

Gensol Engineering's 5-Year average Growth Rate for Operating Margin % was 20.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Gensol Engineering's annualized ROC % for the quarter that ended in Mar. 2024 was 7.73%. Gensol Engineering's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 26.74%.


Gensol Engineering Operating Income Historical Data

The historical data trend for Gensol Engineering's Operating Income 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.

Gensol Engineering Operating Income Chart

Gensol Engineering Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Operating Income
Get a 7-Day Free Trial 30.04 21.70 133.40 514.70 1,533.50

Gensol Engineering Quarterly Data
Mar17 Mar18 Mar19 Mar20 Sep20 Mar21 Sep21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Operating Income 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 195.20 239.40 321.00 425.20 548.10

Gensol Engineering Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was ₹1,534 Mil.

* 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.


Gensol Engineering  (BOM:542851) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Gensol Engineering's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

ROC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=2192.4 * ( 1 - 31.36% )/( (0 + 19457.7)/ 1 )
=1504.86336/19457.7
=7.73 %

where

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

Gensol Engineering's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2023  Q: Mar. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=2705.2/( ( (0 + max(0, 0)) + (7338.8 + max(2777.7, 0)) )/ 1 )
=2705.2/( ( 0 + 10116.5 )/ 1 )
=2705.2/10116.5
=26.74 %

where Working Capital is:

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0 + 0) - (0 + 0 + 0)
=0

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2278 + 121.3 + 2932.2) - (873 + 0 + 1680.8)
=2777.7

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Gensol Engineering's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2024 )/Revenue (Q: Mar. 2024 )
=548.1/3988.2
=13.74 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Gensol Engineering Operating Income Related Terms

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Gensol Engineering (BOM:542851) Business Description

Traded in Other Exchanges
Address
Westgate Business Bay, Block - A, 15th FLoor, Makarba, Ahmedabad, GJ, IND, 380051
Gensol Engineering Ltd is a renewable energy solutions provider focused on end to end solar engineering, procurement, and construction projects. It is engaged in providing technical due diligence, detailed engineering, quality control, construction supervision, and other consulting services for solar projects across various countries, including India.

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