GURUFOCUS.COM » STOCK LIST » Industrials » Construction » SRM Contractors Ltd (NSE:SRM) » Definitions » Operating Income

SRM Contractors (NSE:SRM) Operating Income : ₹507 Mil (TTM As of Dec. 2024)


View and export this data going back to 2024. Start your Free Trial

What is SRM Contractors Operating Income?

SRM Contractors's Operating Income for the three months ended in Dec. 2024 was ₹195 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 was ₹507 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. SRM Contractors's Operating Income for the three months ended in Dec. 2024 was ₹195 Mil. SRM Contractors's Revenue for the three months ended in Dec. 2024 was ₹1,504 Mil. Therefore, SRM Contractors's Operating Margin % for the quarter that ended in Dec. 2024 was 12.99%.

SRM Contractors'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. SRM Contractors's annualized ROC % for the quarter that ended in Dec. 2024 was 40.77%. SRM Contractors's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2024 was 77.50%.


SRM Contractors Operating Income Historical Data

The historical data trend for SRM Contractors'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.

SRM Contractors Operating Income Chart

SRM Contractors Annual Data
Trend Mar21 Mar22 Mar23 Mar24
Operating Income
113.88 240.01 304.96 329.46

SRM Contractors Quarterly Data
Mar21 Mar22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only 45.62 112.37 73.52 125.32 195.47

SRM Contractors 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 ₹507 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.


SRM Contractors  (NSE:SRM) Operating Income Explanation

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

SRM Contractors'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 )
=781.888 * ( 1 - 24.85% )/( (1441.08 + 0)/ 1 )
=587.588832/1441.08
=40.77 %

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))
=3442.159 - 524.522 - ( 1476.557 - max(0, 855.036 - 2848.793+1476.557))
=1441.08

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

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

SRM Contractors'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 )
=917/( ( (523.214 + max(660.029, 0)) + (0 + max(0, 0)) )/ 1 )
=917/( ( 1183.243 + 0 )/ 1 )
=917/1183.243
=77.50 %

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)
=(302.997 + 1067.48 + 1.759) - (524.522 + 0 + 187.685)
=660.029

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 %:

SRM Contractors'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 )
=195.472/1504.407
=12.99 %

* 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.


SRM Contractors Operating Income Related Terms

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


SRM Contractors Business Description

Traded in Other Exchanges
Address
Sector 3, Near BJP Head Office, Trikuta Nagar, Jammu and Kashmir, Jammu, IND, 180012
SRM Contractors Ltd is an engineering construction and development company. It is engaged in the construction of roads (including bridges), tunnels, slope stabilisation works and other miscellaneous civil construction activities in the Union Territories of Jammu & Kashmir and Ladakh, undertaking construction works both as an EPC contractor and on an item rate basis for infrastructure projects. The company operates in three business segments: Road and Highway Construction projects, Trading, and Quarry Mining.