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HEC Infra Projects (NSE:HECPROJECT) Operating Margin % : 8.29% (As of Sep. 2023)


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What is HEC Infra Projects Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. HEC Infra Projects's Operating Income for the three months ended in Sep. 2023 was ₹12.7 Mil. HEC Infra Projects's Revenue for the three months ended in Sep. 2023 was ₹152.7 Mil. Therefore, HEC Infra Projects's Operating Margin % for the quarter that ended in Sep. 2023 was 8.29%.

Warning Sign:

HEC Infra Projects Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -1.3%.

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

NSE:HECPROJECT' s Operating Margin % Range Over the Past 10 Years
Min: 5.5   Med: 7.26   Max: 9.69
Current: 8.29


NSE:HECPROJECT's Operating Margin % is ranked better than
66.86% of 1693 companies
in the Construction industry
Industry Median: 5.24 vs NSE:HECPROJECT: 8.29

HEC Infra Projects's 5-Year Average Operating Margin % Growth Rate was -1.30% per year.

HEC Infra Projects's Operating Income for the three months ended in Sep. 2023 was ₹12.7 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was ₹12.7 Mil.


HEC Infra Projects Operating Margin % Historical Data

The historical data trend for HEC Infra Projects'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.

HEC Infra Projects Operating Margin % Chart

HEC Infra Projects 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 7.35 5.55 5.50 5.98 7.43

HEC Infra Projects Quarterly Data
Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Dec20 Mar21 Sep21 Dec21 Mar22 Sep22 Mar23 Sep23 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 4.70 8.79 - 8.29 -

Competitive Comparison of HEC Infra Projects's Operating Margin %

For the Engineering & Construction subindustry, HEC Infra Projects'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.


HEC Infra Projects's Operating Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, HEC Infra Projects's Operating Margin % distribution charts can be found below:

* The bar in red indicates where HEC Infra Projects's Operating Margin % falls into.



HEC Infra Projects 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.

HEC Infra Projects'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 )
=54.859 / 737.895
=7.43 %

HEC Infra Projects's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=12.658 / 152.68
=8.29 %

* 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.


HEC Infra Projects  (NSE:HECPROJECT) 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.


HEC Infra Projects Operating Margin % Related Terms

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HEC Infra Projects Business Description

Traded in Other Exchanges
N/A
Address
Sindhu Bhavan Road, Sigma 1 Corporate, Corporate House No. 6, Near Mahan Party Plot Cross Road, Bodakdev, Ahmedabad, GJ, IND, 380054
HEC Infra Projects Ltd is an Engineering, Procurement and Construction Company Contractor in the Electro-Mechanical and Instrumentation Projects. The company services include switchyards; overhead transmission; substations, underground cable lying; Industrial and commercial electrification, battery energy storage system and mini / micro grid Solar projects water pumping stations; solar park; rooftop solar; indoor and outdoor lighting; security; fire alarm systems and others. It serves Steel, Chemical, Cement, Refineries, Petrochemicals, Gas and Oil Sector, Textile, Pharmaceuticals, Power-generation plants, Ports, Banks, Malls, Call Centers, Software Park; and other industries. It is engaged in the EPC Electro-Mechanical Project Business which is their only segment.

HEC Infra Projects Headlines

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