ADF Foods (BOM:519183) Operating Income : ₹893 Mil (TTM As of Mar. 2024)

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What is ADF Foods Operating Income?

ADF Foods's Operating Income for the three months ended in Mar. 2024 was ₹299 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was ₹893 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. ADF Foods's Operating Income for the three months ended in Mar. 2024 was ₹299 Mil. ADF Foods's Revenue for the three months ended in Mar. 2024 was ₹1,536 Mil. Therefore, ADF Foods's Operating Margin % for the quarter that ended in Mar. 2024 was 19.48%.

Warning Sign:

ADF Foods Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -4.9%.

ADF Foods's 5-Year average Growth Rate for Operating Margin % was -4.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. ADF Foods's annualized ROC % for the quarter that ended in Mar. 2024 was 27.02%. ADF Foods's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 45.96%.

ADF Foods Operating Income Historical Data

The historical data trend for ADF Foods'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.

ADF Foods Operating Income Chart

ADF Foods Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Operating Income

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490.53

623.72

579.76

669.05

893.44

ADF Foods Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Operating Income	Get a 7-Day Free Trial															229.28	183.37	180.85	229.92	299.29

ADF Foods 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. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was ₹893 Mil.

ADF Foods (BOM:519183) Operating Income Explanation

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

ADF Foods's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	1197.16 * ( 1 - 19.41% )	/	( (0	+	3570.296)	/ 1 )
=	964.791244	/	3570.296
=	27.02 %

where

	Invested Capital		(Q: Dec. 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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

	Invested Capital		(Q: Mar. 2024 )
=	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	))
=	5560.515	-	261.68	-	( 1728.539	-	max(0, 525.659	-	3504.952	+	1728.539	))
=	3570.296

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

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

ADF Foods's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2023		Q: Mar. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	1268.22	/	( ( (0 + max(0, 0))	+	(1437.938 + max(1321.31, 0)) )	/	1 )
=	1268.22	/	( ( 0	+	2759.248 )	/	1 )
=	1268.22	/	2759.248
=	45.96 %

where Working Capital is:

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	0)	-	(0	+	0	+	0)
=	0

	Working Capital		(Q: Mar. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1084.574	+	530.166	+	160.665)	-	(261.68	+	0	+	192.415)
=	1321.31

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

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

ADF Foods'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 )
	=	299.29	/	1536.338
	=	19.48 %

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.

ADF Foods Operating Income Related Terms

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

ADF Foods (BOM:519183) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » ADF Foods Ltd (BOM:519183) » Definitions » Operating Income

Traded in Other Exchanges

ADFFOODS:India

Address

G. K. Road, Marathon Innova, B2 - G01, Ground Floor, Opp. Peninsula Corporate Park, Lower Parel, Mumbai, MH, IND, 400 013

Website

https://www.adf-foods.com

ADF Foods Ltd is an Indian-based company that operates in the business of processed and preserved foods. Its business activities include manufacturing and trading of processed food products including pickles, pastes, chutneys, ready-to-eat items, paste and sauces, frozen foods, spices, and canned vegetables in brine. The company's operating segment is processed food. The company's products are offered under the brand names Ashoka, Camel, Truly Indian, Aeroplane, Nate's, PJ's Organics, ADF Soul, and Khansaama.

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