Quality RO Industries (BOM:543460) Operating Income : ₹4.85 Mil (TTM As of Sep. 2023)

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What is Quality RO Industries Operating Income?

Quality RO Industries's Operating Income for the six months ended in Sep. 2023 was ₹7.10 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was ₹4.85 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Quality RO Industries's Operating Income for the six months ended in Sep. 2023 was ₹7.10 Mil. Quality RO Industries's Revenue for the six months ended in Sep. 2023 was ₹61.37 Mil. Therefore, Quality RO Industries's Operating Margin % for the quarter that ended in Sep. 2023 was 11.57%.

Quality RO Industries's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Quality RO Industries's annualized ROC % for the quarter that ended in Sep. 2023 was 13.44%. Quality RO Industries's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 was 30.61%.

Quality RO Industries Operating Income Historical Data

The historical data trend for Quality RO Industries'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.

Quality RO Industries Operating Income Chart

Quality RO Industries Annual Data

Trend

Mar22

Mar23

Operating Income

1.02

0.44

Quality RO Industries Semi-Annual Data
	Sep21	Mar22	Sep22	Mar23	Sep23
Operating Income	-	1.02	2.70	-2.26	7.10

Quality RO Industries 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 Sep. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was ₹4.85 Mil.

Quality RO Industries (BOM:543460) Operating Income Explanation

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

Quality RO Industries's annualized ROC % for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	14.202 * ( 1 - 22.33% )	/	( (61.025	+	103.182)	/ 2 )
=	11.0306934	/	82.1035
=	13.44 %

where

	Invested Capital		(Q: Mar. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	111.953	-	5.111	-	( 45.817	-	max(0, 19.212	-	89.053	+	45.817	))
=	61.025

	Invested Capital		(Q: Sep. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	143.199	-	38.561	-	( 1.456	-	max(0, 43.92	-	102.069	+	1.456	))
=	103.182

Note: The Operating Income data used here is two times the semi-annual (Sep. 2023) data.

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

Quality RO Industries's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Mar. 2023		Q: Sep. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	15.13	/	( ( (21.567 + max(20.431, 0))	+	(19.359 + max(37.511, 0)) )	/	2 )
=	15.13	/	( ( 41.998	+	56.87 )	/	2 )
=	15.13	/	49.434
=	30.61 %

where Working Capital is:

	Working Capital		(Q: Mar. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(16.444	+	4.246	+	5.325)	-	(5.111	+	0	+	0.473)
=	20.431

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(28.162	+	48.448	+	0.239)	-	(38.561	+	0	+	0.777)
=	37.511

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Sep. 2023) EBIT data.

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

Quality RO Industries's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	7.101	/	61.37
	=	11.57 %

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.

Quality RO Industries Operating Income Related Terms

Thank you for viewing the detailed overview of Quality RO Industries's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Quality RO Industries (BOM:543460) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Quality RO Industries Ltd (BOM:543460) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

Plot No. 09, POR Industrial Park, NH 08 Behind Sahayog Hotel, Village PO, Vadodara, GJ, IND, 391243

Website

https://www.qualityro.in

Quality RO Industries Ltd is engaged in the business of manufacturing, marketing, and supplying components for water purifiers and softener equipment. These water purifier parts have been designed to make a proper fit for RO plants and systems of different varieties, as we produce strictly according to industry standards. The company is at present engaged in the business of Trading and Manufacturing RO products and Transportation activities, which constitute two business segments. The prime revenue generator is the trading and manufacturing of the RO products segment.

Quality RO Industries (BOM:543460) Headlines

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