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Magna Electro Castings (BOM:517449) Operating Margin % : 14.53% (As of Dec. 2024)


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What is Magna Electro Castings Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Magna Electro Castings's Operating Income for the three months ended in Dec. 2024 was ₹63 Mil. Magna Electro Castings's Revenue for the three months ended in Dec. 2024 was ₹431 Mil. Therefore, Magna Electro Castings's Operating Margin % for the quarter that ended in Dec. 2024 was 14.53%.

Good Sign:

Magna Electro Castings Ltd operating margin is expanding. Margin expansion is usually a good sign.

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

BOM:517449' s Operating Margin % Range Over the Past 10 Years
Min: 6.11   Med: 10.21   Max: 16.83
Current: 16.83


BOM:517449's Operating Margin % is ranked better than
86.52% of 2982 companies
in the Industrial Products industry
Industry Median: 6.57 vs BOM:517449: 16.83

Magna Electro Castings's 5-Year Average Operating Margin % Growth Rate was 7.90% per year.

Magna Electro Castings's Operating Income for the three months ended in Dec. 2024 was ₹63 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 was ₹276 Mil.


Magna Electro Castings Operating Margin % Historical Data

The historical data trend for Magna Electro Castings'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.

Magna Electro Castings Operating Margin % Chart

Magna Electro Castings Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.95 6.11 6.60 11.28 12.96

Magna Electro Castings Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 13.01 12.98 20.19 18.71 14.53

Competitive Comparison of Magna Electro Castings's Operating Margin %

For the Metal Fabrication subindustry, Magna Electro Castings'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.


Magna Electro Castings's Operating Margin % Distribution in the Industrial Products Industry

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

* The bar in red indicates where Magna Electro Castings's Operating Margin % falls into.


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Magna Electro Castings 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.

Magna Electro Castings's Operating Margin % for the fiscal year that ended in Mar. 2024 is calculated as

Operating Margin %=Operating Income (A: Mar. 2024 ) / Revenue (A: Mar. 2024 )
=181.972 / 1404.354
=12.96 %

Magna Electro Castings'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 )
=62.669 / 431.404
=14.53 %

* 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.


Magna Electro Castings  (BOM:517449) 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.


Magna Electro Castings Operating Margin % Related Terms

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Magna Electro Castings Business Description

Traded in Other Exchanges
N/A
Address
43, Balasundaram Road, Coimbatore, TN, IND, 641018
Magna Electro Castings Ltd is engaged in manufacturing and supplying ferrous components in small and medium volumes. The company specializes in the manufacture of Ductile Iron and Gray Iron castings including Grey Iron, SG (spheroidal graphite) iron, and other iron alloy castings-machined and unmachined steel components. The company also produces fully machined components. The company has the following divisions; the Foundry division; the Wind Energy Generation division; and the Solar Energy division. The company earns the majority of its revenue from the Foundry division.

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