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Medico Remedies (NSE:MEDICO) Operating Margin % : 6.76% (As of Dec. 2023)


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What is Medico Remedies Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Medico Remedies's Operating Income for the three months ended in Dec. 2023 was ₹20 Mil. Medico Remedies's Revenue for the three months ended in Dec. 2023 was ₹298 Mil. Therefore, Medico Remedies's Operating Margin % for the quarter that ended in Dec. 2023 was 6.76%.

Good Sign:

Medico Remedies Ltd operating margin is expanding. Margin expansion is usually a good sign.

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

NSE:MEDICO' s Operating Margin % Range Over the Past 10 Years
Min: 1.28   Med: 4   Max: 6.68
Current: 6.68


NSE:MEDICO's Operating Margin % is ranked better than
51.38% of 1018 companies
in the Drug Manufacturers industry
Industry Median: 6.075 vs NSE:MEDICO: 6.68

Medico Remedies's 5-Year Average Operating Margin % Growth Rate was 18.80% per year.

Medico Remedies's Operating Income for the three months ended in Dec. 2023 was ₹20 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was ₹87 Mil.


Medico Remedies Operating Margin % Historical Data

The historical data trend for Medico Remedies'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.

Medico Remedies Operating Margin % Chart

Medico Remedies 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 1.28 1.33 4.64 4.49 4.98

Medico Remedies Quarterly Data
Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 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 6.82 9.76 5.53 5.59 6.76

Competitive Comparison of Medico Remedies's Operating Margin %

For the Drug Manufacturers - Specialty & Generic subindustry, Medico Remedies'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.


Medico Remedies's Operating Margin % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Medico Remedies's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Medico Remedies's Operating Margin % falls into.



Medico Remedies 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.

Medico Remedies'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 )
=69.007 / 1384.981
=4.98 %

Medico Remedies'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 )
=20.126 / 297.722
=6.76 %

* 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.


Medico Remedies  (NSE:MEDICO) 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.


Medico Remedies Operating Margin % Related Terms

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Medico Remedies (NSE:MEDICO) Business Description

Traded in Other Exchanges
Address
N. S. Phadke Marg, Opposite Teligali, 1105/1106, 11th Floor, Hubtown Solaris, Andheri (East), Mumbai, MH, IND, 400069
Medico Remedies Ltd is a manufacturer, supplier, and exporter of pharmaceutical drugs. It focuses on the production and marketing of anti-infective, cephalosporins, antimalarial, antiretroviral, anti-ulcer drugs and antacids, vitamins, haematinics, and other supplements. In addition, it also sells other drugs such as antihistaminic, antidiabetics, cardiovascular drugs, diuretics, anti-epileptics, combination drug kits, syrups and cream, and gel for various therapeutic segments.

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