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Kennametal India (BOM:505890) Operating Margin % : 9.81% (As of Mar. 2025)


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What is Kennametal India Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Kennametal India's Operating Income for the three months ended in Mar. 2025 was ₹284 Mil. Kennametal India's Revenue for the three months ended in Mar. 2025 was ₹2,896 Mil. Therefore, Kennametal India's Operating Margin % for the quarter that ended in Mar. 2025 was 9.81%.

Good Sign:

Kennametal India Ltd operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Kennametal India's Operating Margin % or its related term are showing as below:

BOM:505890' s Operating Margin % Range Over the Past 10 Years
Min: 4.03   Med: 9.82   Max: 14.76
Current: 10.81


BOM:505890's Operating Margin % is ranked better than
69.31% of 2972 companies
in the Industrial Products industry
Industry Median: 6.535 vs BOM:505890: 10.81

Kennametal India's 5-Year Average Operating Margin % Growth Rate was 5.30% per year.

Kennametal India's Operating Income for the three months ended in Mar. 2025 was ₹284 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2025 was ₹1,241 Mil.


Kennametal India Operating Margin % Historical Data

The historical data trend for Kennametal India's Operating Margin % 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.

Kennametal India Operating Margin % Chart

Kennametal India Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.58 5.41 11.08 14.76 10.44

Kennametal India Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Operating Margin % 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 12.69 11.83 11.43 10.17 9.81

Competitive Comparison of Kennametal India's Operating Margin %

For the Tools & Accessories subindustry, Kennametal India's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Kennametal India's Operating Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Kennametal India's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Kennametal India's Operating Margin % falls into.


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Kennametal India Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Kennametal India's Operating Margin % for the fiscal year that ended in Jun. 2023 is calculated as

Operating Margin %=Operating Income (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=1123 / 10756
=10.44 %

Kennametal India's Operating Margin % for the quarter that ended in Mar. 2025 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2025 ) / Revenue (Q: Mar. 2025 )
=284 / 2896
=9.81 %

* 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.


Kennametal India  (BOM:505890) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

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 (Diluted) 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.


Kennametal India Operating Margin % Related Terms

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Kennametal India Business Description

Traded in Other Exchanges
N/A
Address
8/9th Mile, Tumkur Road, Bengaluru, KA, IND, 560073
Kennametal India Ltd is an Indian company engaged in the business of manufacturing and trading of hard metal products and machine tools, which are sold in domestic and export markets. It has two reportable segments. Machining solutions segment designs manufacture and sells customized capital intensive machines. Its sales comprise of machines, fixtures, sale of spares, and after-sales service. The hard metal products segment, which is the key revenue driver, deals in metal and metal cutting tools. Its products portfolio includes metalworking tools, mining, construction, engineered components, powdered materials and equipment, wear components, and ceramics. Geographically, it generates the majority of the revenue from India and also exports to Germany, China, the United States and others.

Kennametal India Headlines

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