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Central Depository Services (India) (NSE:CDSL) Operating Margin % : 58.09% (As of Mar. 2024)


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What is Central Depository Services (India) Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Central Depository Services (India)'s Operating Income for the three months ended in Mar. 2024 was ₹1,399 Mil. Central Depository Services (India)'s Revenue for the three months ended in Mar. 2024 was ₹2,408 Mil. Therefore, Central Depository Services (India)'s Operating Margin % for the quarter that ended in Mar. 2024 was 58.09%.

Good Sign:

Central Depository Services (India) Ltd operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Central Depository Services (India)'s Operating Margin % or its related term are showing as below:

NSE:CDSL' s Operating Margin % Range Over the Past 10 Years
Min: 35.97   Med: 54.76   Max: 66.18
Current: 56.9


NSE:CDSL's Operating Margin % is ranked better than
83.56% of 657 companies
in the Capital Markets industry
Industry Median: 13.66 vs NSE:CDSL: 56.90

Central Depository Services (India)'s 5-Year Average Operating Margin % Growth Rate was 5.20% per year.

Central Depository Services (India)'s Operating Income for the three months ended in Mar. 2024 was ₹1,399 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was ₹4,622 Mil.


Central Depository Services (India) Operating Margin % Historical Data

The historical data trend for Central Depository Services (India)'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.

Central Depository Services (India) Operating Margin % Chart

Central Depository Services (India) 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 35.97 61.90 66.18 54.74 56.90

Central Depository Services (India) 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 51.35 50.01 59.27 58.07 58.09

Competitive Comparison of Central Depository Services (India)'s Operating Margin %

For the Capital Markets subindustry, Central Depository Services (India)'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.


Central Depository Services (India)'s Operating Margin % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Central Depository Services (India)'s Operating Margin % distribution charts can be found below:

* The bar in red indicates where Central Depository Services (India)'s Operating Margin % falls into.



Central Depository Services (India) 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.

Central Depository Services (India)'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 )
=4621.575 / 8122.566
=56.90 %

Central Depository Services (India)'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 )
=1398.78 / 2407.822
=58.09 %

* 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.


Central Depository Services (India)  (NSE:CDSL) 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.


Central Depository Services (India) Operating Margin % Related Terms

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Central Depository Services (India) (NSE:CDSL) Business Description

Traded in Other Exchanges
N/A
Address
N.M Joshi Marg, Unit No. A-2501, Marathon Futurex, Mafatlal Mills Compound, Lower Parel (East), Mumbai, MH, IND, 400013
Central Depository Services (India) Ltd is a securities depository in India. It offers dematerialization for a wide range of securities including equity shares, preference shares, mutual fund units, debt instruments, and government securities. The company's operating business segments are Depository Activity, Data Entry and Storage, and Repository, with maximum revenue from the Depository Activity segment.

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