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Ashoka Metcast (BOM:540923) Operating Margin % : 24.44% (As of Sep. 2024)


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What is Ashoka Metcast Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Ashoka Metcast's Operating Income for the three months ended in Sep. 2024 was ₹35.0 Mil. Ashoka Metcast's Revenue for the three months ended in Sep. 2024 was ₹143.3 Mil. Therefore, Ashoka Metcast's Operating Margin % for the quarter that ended in Sep. 2024 was 24.44%.

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

BOM:540923' s Operating Margin % Range Over the Past 10 Years
Min: 0.23   Med: 3.93   Max: 12.87
Current: 12.87


BOM:540923's Operating Margin % is ranked better than
85.5% of 614 companies
in the Steel industry
Industry Median: 3.515 vs BOM:540923: 12.87

Ashoka Metcast's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Ashoka Metcast's Operating Income for the three months ended in Sep. 2024 was ₹35.0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was ₹92.3 Mil.


Ashoka Metcast Operating Margin % Historical Data

The historical data trend for Ashoka Metcast'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.

Ashoka Metcast Operating Margin % Chart

Ashoka Metcast 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 1.76 2.28 5.57 8.00 9.45

Ashoka Metcast Quarterly Data
Mar17 Nov17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Jun22 Sep22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 2.41 5.39 11.74 6.58 24.44

Competitive Comparison of Ashoka Metcast's Operating Margin %

For the Steel subindustry, Ashoka Metcast'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.


Ashoka Metcast's Operating Margin % Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Ashoka Metcast's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Ashoka Metcast's Operating Margin % falls into.



Ashoka Metcast 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.

Ashoka Metcast'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 )
=62.635 / 662.491
=9.45 %

Ashoka Metcast's Operating Margin % for the quarter that ended in Sep. 2024 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=35.03 / 143.342
=24.44 %

* 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.


Ashoka Metcast  (BOM:540923) 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.


Ashoka Metcast Operating Margin % Related Terms

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Ashoka Metcast Business Description

Traded in Other Exchanges
Address
Mithakhali Six Roads, 7th Floor, Ashoka Chambers, Opposite HCG Hospital, Mithakhali, Ahmedabad, GJ, IND, 380006
Ashoka Metcast Ltd is currently engaged in the trading of structural steel and goods. The company has two segments namely Steel Trading and Trading of Goods. The company products are Thermo-Mechanically Treated bars, Angle bars, Mild steel bars, and Steel channels.

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