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Kothari Sugars & Chemicals (NSE:KOTARISUG) Operating Margin % : -0.33% (As of Dec. 2024)


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What is Kothari Sugars & Chemicals Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Kothari Sugars & Chemicals's Operating Income for the three months ended in Dec. 2024 was ₹-3 Mil. Kothari Sugars & Chemicals's Revenue for the three months ended in Dec. 2024 was ₹828 Mil. Therefore, Kothari Sugars & Chemicals's Operating Margin % for the quarter that ended in Dec. 2024 was -0.33%.

Good Sign:

Kothari Sugars & Chemicals Ltd operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Kothari Sugars & Chemicals's Operating Margin % or its related term are showing as below:

NSE:KOTARISUG' s Operating Margin % Range Over the Past 10 Years
Min: -0.2   Med: 5.53   Max: 8.64
Current: 1.92


NSE:KOTARISUG's Operating Margin % is ranked worse than
70.14% of 1889 companies
in the Consumer Packaged Goods industry
Industry Median: 5.5 vs NSE:KOTARISUG: 1.92

Kothari Sugars & Chemicals's 5-Year Average Operating Margin % Growth Rate was 8.80% per year.

Kothari Sugars & Chemicals's Operating Income for the three months ended in Dec. 2024 was ₹-3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 was ₹70 Mil.


Kothari Sugars & Chemicals Operating Margin % Historical Data

The historical data trend for Kothari Sugars & Chemicals'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.

Kothari Sugars & Chemicals Operating Margin % Chart

Kothari Sugars & Chemicals 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 4.92 4.73 8.64 8.33 6.70

Kothari Sugars & Chemicals Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 -2.88 3.13 -2.88 6.86 -0.33

Competitive Comparison of Kothari Sugars & Chemicals's Operating Margin %

For the Confectioners subindustry, Kothari Sugars & Chemicals'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.


Kothari Sugars & Chemicals's Operating Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Kothari Sugars & Chemicals's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Kothari Sugars & Chemicals's Operating Margin % falls into.


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Kothari Sugars & Chemicals 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.

Kothari Sugars & Chemicals'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 )
=336.305 / 5021.749
=6.70 %

Kothari Sugars & Chemicals's Operating Margin % for the quarter that ended in Dec. 2024 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=-2.695 / 827.52
=-0.33 %

* 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.


Kothari Sugars & Chemicals  (NSE:KOTARISUG) 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.


Kothari Sugars & Chemicals Operating Margin % Related Terms

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Kothari Sugars & Chemicals Business Description

Traded in Other Exchanges
N/A
Address
No. 115, Mahatma Gandhi Salai, Kothari Buildings, Nungambakkam, Chennai, TN, IND, 600 034
Kothari Sugars & Chemicals Ltd is into manufacturing sugar and its by-products and cogeneration of power with distillery. It is engaged in three segments, namely Sugar, power, and Distillery. The majority of the revenue is derived from Sugar. Geographically, The company operates in India and Asia, it derives a majority of revenue from India.

Kothari Sugars & Chemicals Headlines

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