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OlaTech Solutions (BOM:543578) Operating Income : ₹68.8 Mil (TTM As of Sep. 2024)


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What is OlaTech Solutions Operating Income?

OlaTech Solutions's Operating Income for the six months ended in Sep. 2024 was ₹43.6 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was ₹68.8 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. OlaTech Solutions's Operating Income for the six months ended in Sep. 2024 was ₹43.6 Mil. OlaTech Solutions's Revenue for the six months ended in Sep. 2024 was ₹114.3 Mil. Therefore, OlaTech Solutions's Operating Margin % for the quarter that ended in Sep. 2024 was 38.10%.

OlaTech Solutions's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. OlaTech Solutions's annualized ROC % for the quarter that ended in Sep. 2024 was 68.91%. OlaTech Solutions's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 139.91%.


OlaTech Solutions Operating Income Historical Data

The historical data trend for OlaTech Solutions'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.

OlaTech Solutions Operating Income Chart

OlaTech Solutions Annual Data
Trend Mar20 Mar21 Mar22 Mar23 Mar24
Operating Income
6.78 1.46 3.82 16.79 42.68

OlaTech Solutions Semi-Annual Data
Mar20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
Operating Income Get a 7-Day Free Trial Premium Member Only 9.61 7.18 17.44 25.24 43.57

OlaTech Solutions 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 Sep. 2024 adds up the semi-annually data reported by the company within the most recent 12 months, which was ₹68.8 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.


OlaTech Solutions  (BOM:543578) Operating Income Explanation

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

OlaTech Solutions's annualized ROC % for the quarter that ended in Sep. 2024 is calculated as:

ROC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=87.136 * ( 1 - 22.7% )/( (68.173 + 127.312)/ 2 )
=67.356128/97.7425
=68.91 %

where

Note: The Operating Income data used here is two times the semi-annual (Sep. 2024) data.

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

OlaTech Solutions's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2024  Q: Sep. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=87.552/( ( (1.498 + max(43.691, 0)) + (21.263 + max(58.704, 0)) )/ 2 )
=87.552/( ( 45.189 + 79.967 )/ 2 )
=87.552/62.578
=139.91 %

where Working Capital is:

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(38.147 + 9.173 + 11.77) - (3.601 + 0 + 11.798)
=43.691

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(59.91 + 15.001 + 7.331) - (0.765 + 0 + 22.773)
=58.704

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Sep. 2024) EBIT data.

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

OlaTech Solutions's Operating Margin % for the quarter that ended in Sep. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Sep. 2024 )/Revenue (Q: Sep. 2024 )
=43.568/114.337
=38.10 %

* 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.


OlaTech Solutions Operating Income Related Terms

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OlaTech Solutions Business Description

Traded in Other Exchanges
N/A
Address
Thane-Belapur Road, Office No. 310, 3rd Floor, Rupa Solitaire, Millennium Business Park, Mahape, Navi Mumbai, MH, IND, 400 710
OlaTech Solutions Ltd is engaged in the business of Data Centre, Enterprise, Telecom, and IT software solutions in the Operations Support System and Business Support System segment. The company's software solutions are offered under the registered trademark Epiphany. It offers software solutions such as NOC tools, network monitoring, management and analytics, system integration services, telecom tower installation, network deployment, server virtualization services, IT equipment installation and management services, data center infrastructure management solutions, and others. The company has clients across different verticals such as Telcos, ISPs, Enterprises, Data Centre Service Providers, and Public Sector.

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