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Rasi Electrodes (BOM:531233) Operating Margin % : 3.49% (As of Mar. 2024)


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What is Rasi Electrodes Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Rasi Electrodes's Operating Income for the three months ended in Mar. 2024 was ₹7.9 Mil. Rasi Electrodes's Revenue for the three months ended in Mar. 2024 was ₹227.4 Mil. Therefore, Rasi Electrodes's Operating Margin % for the quarter that ended in Mar. 2024 was 3.49%.

Warning Sign:

Rasi Electrodes Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -4.2%.

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

BOM:531233' s Operating Margin % Range Over the Past 10 Years
Min: 2.81   Med: 4.33   Max: 9.96
Current: 3.93


BOM:531233's Operating Margin % is ranked worse than
65.51% of 2966 companies
in the Industrial Products industry
Industry Median: 6.935 vs BOM:531233: 3.93

Rasi Electrodes's 5-Year Average Operating Margin % Growth Rate was -4.20% per year.

Rasi Electrodes's Operating Income for the three months ended in Mar. 2024 was ₹7.9 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was ₹33.0 Mil.


Rasi Electrodes Operating Margin % Historical Data

The historical data trend for Rasi Electrodes'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.

Rasi Electrodes Operating Margin % Chart

Rasi Electrodes 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 4.55 4.22 3.29 3.67 3.93

Rasi Electrodes 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 2.81 2.77 5.59 3.74 3.49

Competitive Comparison of Rasi Electrodes's Operating Margin %

For the Tools & Accessories subindustry, Rasi Electrodes'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.


Rasi Electrodes's Operating Margin % Distribution in the Industrial Products Industry

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

* The bar in red indicates where Rasi Electrodes's Operating Margin % falls into.



Rasi Electrodes 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.

Rasi Electrodes'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 )
=32.952 / 838.274
=3.93 %

Rasi Electrodes'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 )
=7.943 / 227.398
=3.49 %

* 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.


Rasi Electrodes  (BOM:531233) 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.


Rasi Electrodes Operating Margin % Related Terms

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Rasi Electrodes (BOM:531233) Business Description

Traded in Other Exchanges
N/A
Address
Number 21, Raja Annamalai Road, Flat A/14, Rams Apartment, 3rd Floor, Purasawalkam, Chennai, TN, IND, 600084
Rasi Electrodes Ltd is an Indian company engaged in manufacturing welding consumables catering to the requirements of the Heavy Engineering and Light Engineering industries. The Company is a supplier of welding consumables under the brand name RASI for public-sector undertakings private-sector engineering conglomerates and other Original Equipment Manufacturers. The Company also deals in diverse welding products such as welding machines and accessories.

Rasi Electrodes (BOM:531233) Headlines

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