iGate (FRA:MS4) Operating Income : €174 Mil (TTM As of Mar. 2015)

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What is iGate Operating Income?

iGate's Operating Income for the three months ended in Mar. 2015 was €51 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2015 was €174 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. iGate's Operating Income for the three months ended in Mar. 2015 was €51 Mil. iGate's Revenue for the three months ended in Mar. 2015 was €298 Mil. Therefore, iGate's Operating Margin % for the quarter that ended in Mar. 2015 was 17.05%.

iGate'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. iGate's annualized ROC % for the quarter that ended in Mar. 2015 was 14.12%. iGate's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2015 was 65.83%.

iGate Operating Income Historical Data

The historical data trend for iGate'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.

iGate Operating Income Chart

iGate Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Operating Income

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40.07

80.49

157.18

165.89

178.76

iGate Quarterly Data
	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15
Operating Income	Get a 7-Day Free Trial															44.25	42.53	42.41	37.94	50.74

iGate 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. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was €174 Mil.

iGate (FRA:MS4) Operating Income Explanation

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

iGate's annualized ROC % for the quarter that ended in Mar. 2015 is calculated as:

	ROC % (Q: Mar. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2014 )	+	Invested Capital (Q: Mar. 2015 ))	/ count )
=	202.956 * ( 1 - 31.64% )	/	( (903.752	+	1061.206)	/ 2 )
=	138.7407216	/	982.479
=	14.12 %

where

	Invested Capital		(Q: Dec. 2014 )
=	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	))
=	1140.431	-	85.29	-	( 151.389	-	max(0, 227.638	-	403.883	+	151.389	))
=	903.752

	Invested Capital		(Q: Mar. 2015 )
=	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	))
=	1309.811	-	112.626	-	( 135.979	-	max(0, 224.077	-	459.131	+	135.979	))
=	1061.206

Note: The Operating Income data used here is four times the quarterly (Mar. 2015) data.

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

iGate's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2015 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2015 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2014		Q: Mar. 2015
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	233.444	/	( ( (249.706 + max(44.075, 0))	+	(294.003 + max(121.463, 0)) )	/	2 )
=	233.444	/	( ( 293.781	+	415.466 )	/	2 )
=	233.444	/	354.6235
=	65.83 %

where Working Capital is:

	Working Capital		(Q: Dec. 2014 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(141.243	+	0	+	27.473)	-	(85.29	+	14.425	+	24.926)
=	44.075

	Working Capital		(Q: Mar. 2015 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(176.571	+	0	+	70.101)	-	(112.626	+	12.583	+	0)
=	121.463

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2015) EBIT data.

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

iGate's Operating Margin % for the quarter that ended in Mar. 2015 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2015 )	/	Revenue (Q: Mar. 2015 )
	=	50.739	/	297.567
	=	17.05 %

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.

iGate Operating Income Related Terms

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

iGate (FRA:MS4) Business Description

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http://www.igate.com

Igate Corp was founded in 1986. The Company is an outsourcing provider of integrated end-to-end offshore centric information technology (IT) and IT-enabled operations solutions and services. The Company delivers various IT services through international integrated onsite and offshore delivery locations mainly in India. The Company provides its services to customers through industry focused practices, including insurance and healthcare (IHC), manufacturing, retail and logistics (MRDL), banking and financial services (BFS"), communications and utilities (CEU), and media and entertainment (MELT) and through technology focused practices. It offers services to customers through industry focused practices, including insurance and healthcare, life sciences, manufacturing, retail and logistics, banking and financial services, communications, energy and utilities, product and engineering solutions, government solutions and media and entertainment. Its IT and IT-enabled services include application development, application management, verification and validation, enterprise application solutions, business intelligence and data warehousing, infrastructure management services, enterprise mobility, cloud services, embedded systems development, engineering design services, IT consulting, IT governance and customized learning solutions, business process outsourcing ("BPO") and customer interaction services. The Company has operations in India, Canada, the United States, Europe, Mexico, Singapore, Malaysia, Japan, Australia, the United Arab Emirates, South Africa, Turkey, South Korea, China, Switzerland and the United Kingdom. The Company delivers effective solutions to more than 360 Fortune 1000 clients. The Company's main competitors in the IT and IT enabled outsourcing industry include IT outsourcing firms, consulting firms, systems integration-firms and general management consulting firms such as Tata Consultancy Services Limited, Infosys Technologies Limited, Cognizant Technology Solutions Corporation, Wipro Limited, Genpact Limited, WNS (Holdings) Limited, EXLService Holdings Inc., Syntel Inc., Mindtree Limited, and Hexaware Technologies Limited. The Company is subject to numerous, and sometimes conflicting, legal regimes on matters as diverse as anticorruption, import/export controls, content requirements, trade restrictions, tariffs, taxation, sanctions, immigration, internal and disclosure control obligations, securities regulation, anti-competition, data privacy and labor relations.

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