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Kirloskar Oil Engines (BOM:533293) Operating Income : ₹10,579 Mil (TTM As of Dec. 2024)


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What is Kirloskar Oil Engines Operating Income?

Kirloskar Oil Engines's Operating Income for the three months ended in Dec. 2024 was ₹2,134 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 was ₹10,579 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Kirloskar Oil Engines's Operating Income for the three months ended in Dec. 2024 was ₹2,134 Mil. Kirloskar Oil Engines's Revenue for the three months ended in Dec. 2024 was ₹14,537 Mil. Therefore, Kirloskar Oil Engines's Operating Margin % for the quarter that ended in Dec. 2024 was 14.68%.

Good Sign:

Kirloskar Oil Engines Ltd operating margin is expanding. Margin expansion is usually a good sign.

Kirloskar Oil Engines's 5-Year average Growth Rate for Operating Margin % was 16.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Kirloskar Oil Engines's annualized ROC % for the quarter that ended in Dec. 2024 was 7.34%. Kirloskar Oil Engines's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2024 was 77.25%.


Kirloskar Oil Engines Operating Income Historical Data

The historical data trend for Kirloskar Oil Engines'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.

Kirloskar Oil Engines Operating Income Chart

Kirloskar Oil Engines Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2,050.40 3,052.00 3,130.40 6,306.10 9,153.60

Kirloskar Oil Engines Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Operating Income 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 2,220.30 2,915.20 2,926.80 2,603.30 2,133.70

Kirloskar Oil Engines 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 Dec. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was ₹10,579 Mil.

* 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.


Kirloskar Oil Engines  (BOM:533293) Operating Income Explanation

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

Kirloskar Oil Engines's annualized ROC % for the quarter that ended in Dec. 2024 is calculated as:

ROC % (Q: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2024 ) + Invested Capital (Q: Dec. 2024 ))/ count )
=8534.8 * ( 1 - 28.26% )/( (83369 + 0)/ 1 )
=6122.86552/83369
=7.34 %

where

Invested Capital(Q: Sep. 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))
=97815.6 - 7813.3 - ( 13105.1 - max(0, 36498.9 - 43132.2+13105.1))
=83369

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

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

Kirloskar Oil Engines's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2024  Q: Dec. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=9122.8/( ( (8393.7 + max(3415.5, 0)) + (0 + max(0, 0)) )/ 1 )
=9122.8/( ( 11809.2 + 0 )/ 1 )
=9122.8/11809.2
=77.25 %

where Working Capital is:

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(6631 + 8483.1 + 1181.3) - (7813.3 + 0 + 5066.6)
=3415.5

Working Capital(Q: Dec. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0 + 0) - (0 + 0 + 0)
=0

When net working capital is negative, 0 is used.

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

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

Kirloskar Oil Engines's Operating Margin % for the quarter that ended in Dec. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2024 )/Revenue (Q: Dec. 2024 )
=2133.7/14537
=14.68 %

* 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.

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.


Kirloskar Oil Engines Operating Income Related Terms

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Kirloskar Oil Engines Business Description

Traded in Other Exchanges
Address
Laxmanrao Kirloskar Road, Khadki, Pune, MH, IND, 411003
Kirloskar Oil Engines Ltd is an India-based company that along with its subsidiaries, manufactures and distributes diesel engines, agricultural pump sets, electric pump sets power tillers, generating sets, and spares thereof and provides financial services. The company's products are used in various sectors including telecom, engineering, manufacturing, engineering, automobile, textile, food processing, defense, and others. Its operating reportable segments are; B2B, B2C, and Financial Services. Maximum revenue is generated from its B2B segment which includes the gensets and engines offered to businesses across different sectors. Geographically, the majority of the company's revenue is generated in India and the rest from other countries.

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