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Gujarat State Petronet (BOM:532702) Operating Margin % : 14.10% (As of Dec. 2023)


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What is Gujarat State Petronet Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Gujarat State Petronet's Operating Income for the three months ended in Dec. 2023 was ₹6,187 Mil. Gujarat State Petronet's Revenue for the three months ended in Dec. 2023 was ₹43,891 Mil. Therefore, Gujarat State Petronet's Operating Margin % for the quarter that ended in Dec. 2023 was 14.10%.

Warning Sign:

Gujarat State Petronet Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -5.8%.

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

BOM:532702' s Operating Margin % Range Over the Past 10 Years
Min: 15.62   Med: 22.24   Max: 70.91
Current: 15.62


BOM:532702's Operating Margin % is ranked better than
57.65% of 510 companies
in the Utilities - Regulated industry
Industry Median: 12.535 vs BOM:532702: 15.62

Gujarat State Petronet's 5-Year Average Operating Margin % Growth Rate was -5.80% per year.

Gujarat State Petronet's Operating Income for the three months ended in Dec. 2023 was ₹6,187 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was ₹26,462 Mil.


Gujarat State Petronet Operating Margin % Historical Data

The historical data trend for Gujarat State Petronet'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.

Gujarat State Petronet Operating Margin % Chart

Gujarat State Petronet Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.19 22.11 26.42 16.32 16.99

Gujarat State Petronet Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 17.56 16.96 13.87 17.55 14.10

Competitive Comparison of Gujarat State Petronet's Operating Margin %

For the Utilities - Regulated Gas subindustry, Gujarat State Petronet'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.


Gujarat State Petronet's Operating Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Gujarat State Petronet's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Gujarat State Petronet's Operating Margin % falls into.



Gujarat State Petronet 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.

Gujarat State Petronet's Operating Margin % for the fiscal year that ended in Mar. 2023 is calculated as

Operating Margin %=Operating Income (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=30623.889 / 180256.387
=16.99 %

Gujarat State Petronet's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=6187.338 / 43890.836
=14.10 %

* 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.


Gujarat State Petronet  (BOM:532702) 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.


Gujarat State Petronet Operating Margin % Related Terms

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Gujarat State Petronet (BOM:532702) Business Description

Traded in Other Exchanges
Address
GSPL Bhavan, E-18, GIDC Electronics Estate, Sector-26, Near K-7 Circle, Gandhinagar, GJ, IND, 382028
Gujarat State Petronet Ltd is a regulated Indian natural gas utility company of which the shareholder is a state-owned oil and gas exploration company, Gujarat State Petroleum Corporation. Gujarat State Petronet is involved in the provision of natural gas, compressed natural gas, and liquefied natural gas transmission services in the West Indian state of Gujarat through its pipeline network. The company derives the vast majority of its sales from service fees relating to the transportation of gas to domestic, industrial, and commercial customers. With its many subsidiaries and associate firms, such as Gujarat Gas Limited, Gujarat State Petronet is one of the gas distributors in India.

Gujarat State Petronet (BOM:532702) Headlines

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