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Morepen Laboratories (NSE:MOREPENLAB) Operating Margin % : 9.47% (As of Dec. 2023)


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What is Morepen Laboratories Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Morepen Laboratories's Operating Income for the three months ended in Dec. 2023 was ₹421 Mil. Morepen Laboratories's Revenue for the three months ended in Dec. 2023 was ₹4,446 Mil. Therefore, Morepen Laboratories's Operating Margin % for the quarter that ended in Dec. 2023 was 9.47%.

Good Sign:

Morepen Laboratories Ltd operating margin is expanding. Margin expansion is usually a good sign.

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

NSE:MOREPENLAB' s Operating Margin % Range Over the Past 10 Years
Min: 0.88   Med: 4.23   Max: 7.51
Current: 5.84


NSE:MOREPENLAB's Operating Margin % is ranked worse than
50.98% of 1018 companies
in the Drug Manufacturers industry
Industry Median: 6.075 vs NSE:MOREPENLAB: 5.84

Morepen Laboratories's 5-Year Average Operating Margin % Growth Rate was 2.90% per year.

Morepen Laboratories's Operating Income for the three months ended in Dec. 2023 was ₹421 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was ₹950 Mil.


Morepen Laboratories Operating Margin % Historical Data

The historical data trend for Morepen Laboratories'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.

Morepen Laboratories Operating Margin % Chart

Morepen Laboratories 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 3.65 3.76 7.51 7.07 3.65

Morepen Laboratories 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 3.82 2.38 4.58 6.14 9.47

Competitive Comparison of Morepen Laboratories's Operating Margin %

For the Drug Manufacturers - Specialty & Generic subindustry, Morepen Laboratories'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.


Morepen Laboratories's Operating Margin % Distribution in the Drug Manufacturers Industry

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

* The bar in red indicates where Morepen Laboratories's Operating Margin % falls into.



Morepen Laboratories 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.

Morepen Laboratories'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 )
=516.025 / 14139.548
=3.65 %

Morepen Laboratories'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 )
=421.212 / 4445.541
=9.47 %

* 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.


Morepen Laboratories  (NSE:MOREPENLAB) 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.


Morepen Laboratories Operating Margin % Related Terms

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Morepen Laboratories (NSE:MOREPENLAB) Business Description

Traded in Other Exchanges
Address
2nd Floor, Tower C, DLF Cyber Park, Udyog Vihar-III, Sector 20, Gurugram, HR, IND, 122016
Morepen Laboratories Ltd is an India based pharmaceutical company. It develops, manufactures and markets generic drugs and pharmaceutical formulations. The company's products includes Tablets, Capsules, Injections, Ointments, Syrups, and Powders. It also offers products under brands Burnol, Lemolate and Fiber-X. The company's geographical markets include India, the United States and the rest of the world, with a majority of revenue being generated in India.

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