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Deccan Cements (NSE:DECCANCE) Operating Margin % : 9.97% (As of Dec. 2023)


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What is Deccan Cements Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Deccan Cements's Operating Income for the three months ended in Dec. 2023 was ₹216 Mil. Deccan Cements's Revenue for the three months ended in Dec. 2023 was ₹2,169 Mil. Therefore, Deccan Cements's Operating Margin % for the quarter that ended in Dec. 2023 was 9.97%.

Good Sign:

Deccan Cements Ltd operating margin is expanding. Margin expansion is usually a good sign.

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

NSE:DECCANCE' s Operating Margin % Range Over the Past 10 Years
Min: 7.9   Med: 11.14   Max: 20.19
Current: 7.9


NSE:DECCANCE's Operating Margin % is ranked worse than
50.78% of 384 companies
in the Building Materials industry
Industry Median: 7.925 vs NSE:DECCANCE: 7.90

Deccan Cements's 5-Year Average Operating Margin % Growth Rate was 2.60% per year.

Deccan Cements's Operating Income for the three months ended in Dec. 2023 was ₹216 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was ₹609 Mil.


Deccan Cements Operating Margin % Historical Data

The historical data trend for Deccan Cements'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.

Deccan Cements Operating Margin % Chart

Deccan Cements 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 11.22 10.38 20.19 17.21 8.99

Deccan Cements 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 8.60 7.23 9.58 4.05 9.97

Competitive Comparison of Deccan Cements's Operating Margin %

For the Building Materials subindustry, Deccan Cements'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.


Deccan Cements's Operating Margin % Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Deccan Cements's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Deccan Cements's Operating Margin % falls into.



Deccan Cements 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.

Deccan Cements'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 )
=701.148 / 7801.649
=8.99 %

Deccan Cements'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 )
=216.208 / 2168.596
=9.97 %

* 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.


Deccan Cements  (NSE:DECCANCE) 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.


Deccan Cements Operating Margin % Related Terms

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Deccan Cements (NSE:DECCANCE) Business Description

Traded in Other Exchanges
Address
Deccan Chambers, 6-3-666/B, 6th Floor, Somajiguda, Hyderabad, TG, IND, 500082
Deccan Cements Ltd is engaged in the manufacturing and marketing of cement in India. It produces cement in form of Clinker, Portland cement, Slag cement and similar. In addition, it is also engaged in the generation of electricity. Its power division includes Thermal, Hydel, and Wind. The firm sells its product under Deccan Cements brand.

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