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Sukhjit Starch & Chemicals (BOM:524542) Operating Margin % : 6.73% (As of Mar. 2024)


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What is Sukhjit Starch & Chemicals Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Sukhjit Starch & Chemicals's Operating Income for the three months ended in Mar. 2024 was ₹249 Mil. Sukhjit Starch & Chemicals's Revenue for the three months ended in Mar. 2024 was ₹3,699 Mil. Therefore, Sukhjit Starch & Chemicals's Operating Margin % for the quarter that ended in Mar. 2024 was 6.73%.

Warning Sign:

Sukhjit Starch & Chemicals Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -1.5%.

The historical rank and industry rank for Sukhjit Starch & Chemicals's Operating Margin % or its related term are showing as below:

BOM:524542' s Operating Margin % Range Over the Past 10 Years
Min: 5.18   Med: 7.27   Max: 10.66
Current: 6.78


BOM:524542's Operating Margin % is ranked better than
54.26% of 1526 companies
in the Chemicals industry
Industry Median: 5.77 vs BOM:524542: 6.78

Sukhjit Starch & Chemicals's 5-Year Average Operating Margin % Growth Rate was -1.50% per year.

Sukhjit Starch & Chemicals's Operating Income for the three months ended in Mar. 2024 was ₹249 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was ₹932 Mil.


Sukhjit Starch & Chemicals Operating Margin % Historical Data

The historical data trend for Sukhjit Starch & Chemicals'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.

Sukhjit Starch & Chemicals Operating Margin % Chart

Sukhjit Starch & Chemicals 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 5.18 6.11 10.59 7.71 6.78

Sukhjit Starch & Chemicals Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 7.34 6.06 6.48 7.72 6.73

Competitive Comparison of Sukhjit Starch & Chemicals's Operating Margin %

For the Specialty Chemicals subindustry, Sukhjit Starch & Chemicals'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.


Sukhjit Starch & Chemicals's Operating Margin % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Sukhjit Starch & Chemicals's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Sukhjit Starch & Chemicals's Operating Margin % falls into.



Sukhjit Starch & Chemicals 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.

Sukhjit Starch & Chemicals'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 )
=931.9 / 13753.5
=6.78 %

Sukhjit Starch & Chemicals's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=248.8 / 3699.2
=6.73 %

* 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.


Sukhjit Starch & Chemicals  (BOM:524542) 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.


Sukhjit Starch & Chemicals Operating Margin % Related Terms

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Sukhjit Starch & Chemicals (BOM:524542) Business Description

Traded in Other Exchanges
Address
Sarai Road, Kapurthala District, Phagwara, PB, IND, 144401
Sukhjit Starch & Chemicals Ltd is an India-based manufacturer of starch and its derivatives. The company's operation is divided into four segments namely Starch and its derivatives, Readymade garments, Leasing and hire purchase financing, and Manufacturing of heavy machinery. It derives key revenue from Starch and its derivatives business division. The company produces maize starch, liquid glucose, high maltose syrup, Monohydrate dextrose, Malto Dextrin, Oxidized Starch, Cationic Starch, Thin Boiling Starch, Pre- Gelatinised Starch, Yellow Dextrin, White Dextrin, Maize Gluten, Maize Germ, Maize Oil, Maize Germ cake, Corn steep liquor, and Maize coarse bran.

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