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Lorenzini Apparels (NSE:LAL) Operating Income : ₹73.0 Mil (TTM As of Dec. 2024)


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What is Lorenzini Apparels Operating Income?

Lorenzini Apparels's Operating Income for the three months ended in Dec. 2024 was ₹37.5 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 was ₹73.0 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Lorenzini Apparels's Operating Income for the three months ended in Dec. 2024 was ₹37.5 Mil. Lorenzini Apparels's Revenue for the three months ended in Dec. 2024 was ₹212.7 Mil. Therefore, Lorenzini Apparels's Operating Margin % for the quarter that ended in Dec. 2024 was 17.61%.

Good Sign:

Lorenzini Apparels Ltd operating margin is expanding. Margin expansion is usually a good sign.

Lorenzini Apparels's 5-Year average Growth Rate for Operating Margin % was 33.20% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Lorenzini Apparels's annualized ROC % for the quarter that ended in Dec. 2024 was 12.80%. Lorenzini Apparels's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2024 was -51.19%.


Lorenzini Apparels Operating Income Historical Data

The historical data trend for Lorenzini Apparels'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.

Lorenzini Apparels Operating Income Chart

Lorenzini Apparels 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 18.01 9.40 15.70 57.03 72.85

Lorenzini Apparels Quarterly Data
Jul17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 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 14.63 16.54 6.21 12.79 37.46

Lorenzini Apparels 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 ₹73.0 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.


Lorenzini Apparels  (NSE:LAL) Operating Income Explanation

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

Lorenzini Apparels'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 )
=149.836 * ( 1 - 66.09% )/( (396.866 + 0)/ 1 )
=50.8093876/396.866
=12.80 %

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))
=898.014 - 144.001 - ( 357.147 - max(0, 269.701 - 842.978+357.147))
=396.866

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

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

Lorenzini Apparels'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 )
=-181.664/( ( (46.328 + max(308.566, 0)) + (0 + max(0, 0)) )/ 1 )
=-181.664/( ( 354.894 + 0 )/ 1 )
=-181.664/354.894
=-51.19 %

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)
=(193.696 + 288.895 + 2.0089999999999) - (144.001 + 0 + 32.033)
=308.566

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 %:

Lorenzini Apparels'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 )
=37.459/212.705
=17.61 %

* 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.


Lorenzini Apparels Operating Income Related Terms

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Lorenzini Apparels Business Description

Traded in Other Exchanges
Address
C-64, Okhla Industrial Area Phase - I, South Delhi, New Delhi, IND, 110020
Lorenzini Apparels Ltd is engaged in the business of manufacturing, designing and marketing of readymade garments offering diverse range of formal, semi-formal and casual wear for men and women. It serves customers through the channels of retail and e-commerce. Its garment manufacturing process includes cutting, stitching, sewing, finishing, inspection and packing. It also outsources the garments manufacturing on job work basis from third party contractors from time to time and provides the technical specifications such as designs, pattern, quality, fabric etc. to them who, based on its specifications, procure the requisite raw materials at their own costs and begin the manufacturing process.

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