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Oriana Power (NSE:ORIANA) Degree of Operating Leverage : 1.77 (As of Mar. 2024)


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What is Oriana Power Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Oriana Power's Degree of Operating Leverage for the quarter that ended in Mar. 2024 was 1.77. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Oriana Power's Degree of Operating Leverage or its related term are showing as below:

NSE:ORIANA's Degree of Operating Leverage is ranked worse than
67.16% of 402 companies
in the Utilities - Independent Power Producers industry
Industry Median: 0.61 vs NSE:ORIANA: 1.77

Oriana Power Degree of Operating Leverage Historical Data

The historical data trend for Oriana Power's Degree of Operating Leverage 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.

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Oriana Power Degree of Operating Leverage Chart

Oriana Power Annual Data
Trend Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage
- 0.96 6.36 1.77

Oriana Power Semi-Annual Data
Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage - 0.96 6.36 1.77

Competitive Comparison of Oriana Power's Degree of Operating Leverage

For the Utilities - Renewable subindustry, Oriana Power's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage 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.


Oriana Power's Degree of Operating Leverage Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Oriana Power's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Oriana Power's Degree of Operating Leverage falls into.


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Oriana Power Degree of Operating Leverage Calculation

Oriana Power's Degree of Operating Leverage for the quarter that ended in Mar. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 808.102 (Mar. 2024) / 189.399 (Mar. 2023) - 1 )/( 3828.748 (Mar. 2024) / 1347.171 (Mar. 2023) - 1 )
=3.2667/1.8421
=1.77***

* 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.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Oriana Power  (NSE:ORIANA) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Oriana Power Degree of Operating Leverage Related Terms

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Oriana Power Business Description

Traded in Other Exchanges
N/A
Address
Noida Gautam Buddha Nagar, Third Floor, Plot No 19 and 20, Sector 125, Amity University, Noida, Ghaziabad, UP, IND, 201313
Oriana Power Ltd is a company that specializes in providing solar energy solutions to industrial and commercial customers. It offers low-carbon energy solutions by installing on-site solar projects such as rooftop and ground-mounted systems, as well as off-site solar farms i.e. Open access. Its business operations are mainly divided into two segments: Capital Expenditure (CAPEX) and Renewable Energy Service Company (RESCO). Under the CAPEX model, it offers Engineering, Procurement, construction, and operation of solar projects. Under CAPEX Model it has delivered projects with a capacity exceeding 100 MWp across various locations across India.

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