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Indraprastha Gas (BOM:532514) Operating Margin % : 10.93% (As of Mar. 2024)


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What is Indraprastha Gas Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Indraprastha Gas's Operating Income for the three months ended in Mar. 2024 was ₹3,911 Mil. Indraprastha Gas's Revenue for the three months ended in Mar. 2024 was ₹35,783 Mil. Therefore, Indraprastha Gas's Operating Margin % for the quarter that ended in Mar. 2024 was 10.93%.

Warning Sign:

Indraprastha Gas Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -8.8%.

The historical rank and industry rank for Indraprastha Gas's Operating Margin % or its related term are showing as below:

BOM:532514' s Operating Margin % Range Over the Past 10 Years
Min: 11.76   Med: 19.28   Max: 24.53
Current: 13.93


BOM:532514's Operating Margin % is ranked better than
52.75% of 510 companies
in the Utilities - Regulated industry
Industry Median: 12.49 vs BOM:532514: 13.93

Indraprastha Gas's 5-Year Average Operating Margin % Growth Rate was -8.80% per year.

Indraprastha Gas's Operating Income for the three months ended in Mar. 2024 was ₹3,911 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was ₹19,499 Mil.


Indraprastha Gas Operating Margin % Historical Data

The historical data trend for Indraprastha Gas's Operating Margin % 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.

Indraprastha Gas Operating Margin % Chart

Indraprastha Gas Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.91 24.53 20.58 11.76 13.93

Indraprastha Gas Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Operating Margin % 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.75 15.95 16.04 12.95 10.93

Competitive Comparison of Indraprastha Gas's Operating Margin %

For the Utilities - Regulated Gas subindustry, Indraprastha Gas's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Indraprastha Gas's Operating Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Indraprastha Gas's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Indraprastha Gas's Operating Margin % falls into.



Indraprastha Gas Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Indraprastha Gas's Operating Margin % for the fiscal year that ended in Mar. 2024 is calculated as

Operating Margin %=Operating Income (A: Mar. 2024 ) / Revenue (A: Mar. 2024 )
=19497 / 140000.2
=13.93 %

Indraprastha Gas'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 )
=3911.2 / 35783.3
=10.93 %

* 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.


Indraprastha Gas  (BOM:532514) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

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 (Diluted) 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.


Indraprastha Gas Operating Margin % Related Terms

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Indraprastha Gas (BOM:532514) Business Description

Traded in Other Exchanges
Address
IGL Bhawan, Plot Number 4, Community Centre, Sector-9, R K Puram, New Delhi, IND, 110022
Indraprastha Gas Ltd, or IGL, is an Indian utility company that derives nearly all of its revenue from the sale of natural gas. IGL supplies compressed natural gas (CNG) to the transport sector and piped natural gas (PNG) to domestic, industrial, and commercial sector customers. Most of the natural gas sold by IGL is in the form of compressed natural gas. CNG is an alternative to fossil fuels that is distributed from IGL's portfolio of fueling stations to power a variety of vehicles. The vast majority of these CNG stations are located in the Delhi and National Capital Regions. IGL distributes a significant amount of natural gas through its network of pipelines in Delhi and the National Capital Region, as well. The customers served by IGL's PNG business are primarily residential consumers.

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