Pincon Spirit (NSE:PINCON) Operating Income: ₹1,063 Mil (TTM As of Sep. 2017)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is Pincon Spirit Operating Income?

Pincon Spirit NSE:PINCON Operating Income is ₹1,063 Mil as of Sep. 2017.

Pincon Spirit's Operating Income for the six months ended in Sep. 2017 was ₹562 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2017 was ₹1,063 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Pincon Spirit's Operating Income for the six months ended in Sep. 2017 was ₹562 Mil. Pincon Spirit's Revenue for the six months ended in Sep. 2017 was ₹8,926 Mil. Therefore, Pincon Spirit's Operating Margin % for the quarter that ended in Sep. 2017 was 6.29%.

Pincon Spirit'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. Pincon Spirit's annualized ROC % for the quarter that ended in Sep. 2017 was 13.27%. Pincon Spirit's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2017 was 25.14%.

Pincon Spirit  (NSE:PINCON) Operating Income Explanation

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

Pincon Spirit's annualized ROC % for the quarter that ended in Sep. 2017 is calculated as:

ROC % (Q: Sep. 2017 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2017 ) + Invested Capital (Q: Sep. 2017 ))/ count )
=1123.662 * ( 1 - 32.16% )/( (5366.41 + 6120.664)/ 2 )
=762.2923008/5743.537
=13.27 %

where

Invested Capital(Q: Mar. 2017 )
=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))
=5586.76 - 215.228 - ( 5.122 - max(0, 3399.646 - 4767.738+5.122))
=5366.41

Invested Capital(Q: Sep. 2017 )
=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))
=6417.895 - 45.049 - ( 252.182 - max(0, 3655.076 - 5411.613+252.182))
=6120.664

Note: The Operating Income data used here is two times the semi-annual (Sep. 2017) data.

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

Pincon Spirit's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2017 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2017 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2017  Q: Sep. 2017
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1123.662/( ( (416.21 + max(3677.064, 0)) + (432.147 + max(4415.07, 0)) )/ 2 )
=1123.662/( ( 4093.274 + 4847.217 )/ 2 )
=1123.662/4470.2455
=25.14 %

where Working Capital is:

Working Capital(Q: Mar. 2017 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2085.548 + 2096.943 + 580.125) - (215.228 + 0 + 870.324)
=3677.064

Working Capital(Q: Sep. 2017 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2868.576 + 2290.855 + 0) - (45.049 + 0 + 699.312)
=4415.07

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Sep. 2017) EBIT data.

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

Pincon Spirit's Operating Margin % for the quarter that ended in Sep. 2017 is calculated as:

Operating Margin %=Operating Income (Q: Sep. 2017 )/Revenue (Q: Sep. 2017 )
=561.831/8925.656
=6.29 %

* 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.

Pincon Spirit Operating Income Related Terms

Pincon Spirit Operating Income Historical Data

* Premium members only.

The historical data trend for Pincon Spirit'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.

Pincon Spirit Operating Income Chart

Pincon Spirit Annual Data
Trend Mar14 Mar15 Mar16 Mar17
Operating Income
164.76 330.45 558.37 925.67

Pincon Spirit Semi-Annual Data
Mar14 Mar15 Mar16 Sep16 Mar17 Sep17
Operating Income Get a 7-Day Free Trial 0.00 0.00 424.67 501.00 561.83

Pincon Spirit 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. 2017 adds up the semi-annually data reported by the company within the most recent 12 months, which was ₹1,063 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of ₹1,063 Mil mean?
Pincon Spirit (NSE:PINCON) has a Operating Income of ₹1,063 Mil as of Sep. 2017. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Pincon Spirit and its competitors.
Is Pincon Spirit's Operating Income too high?
Pincon Spirit's current Operating Income is ₹1,063 Mil.
How does Pincon Spirit's Operating Income compare to THST and JCTG?
Pincon Spirit's Operating Income of ₹1,063 Mil can be compared against companies in the Beverages - Alcoholic industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Beverages - Alcoholic company?
A good Operating Income depends on the Beverages - Alcoholic industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Pincon Spirit and its competitors. Pincon Spirit's current Operating Income is ₹1,063 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pincon Spirit stock overvalued right now?
Pincon Spirit (NSE:PINCON) has a current Operating Income of ₹1,063 Mil. The current Operating Income is ₹1,063 Mil. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Pincon Spirit (NSE:PINCON), the current Operating Income is ₹1,063 Mil as of Sep. 2017. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Pincon Spirit Business Description

Address Number 103, 3rd Floor, Samskruthi Chambers, K.H Road, Shanthi Nagar, Bengaluru, KA, IND, 560027
Pincon Spirit Ltd is engaged in blending, bottling and wholesale distributions of Indian Made Foreign Liquor (IMFL), Indian Made Indian Liquor (IMIL) and refining, packaging and wholesale distributions of fast moving consumer goods. The company derives its revenue from its Indian Made Foreign Liquor (IMFL), Indian Made Indian Liquor (IMIL) segment. The Edible oils business segment is engaged in the manufacture of edible oils and the Company owns a refining and packaging unit.