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Shivam Cements (XNEP:SHIVM) Operating Margin % : 17.36% (As of Apr. 2025)


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What is Shivam Cements Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Shivam Cements's Operating Income for the three months ended in Apr. 2025 was NPR398 Mil. Shivam Cements's Revenue for the three months ended in Apr. 2025 was NPR2,296 Mil. Therefore, Shivam Cements's Operating Margin % for the quarter that ended in Apr. 2025 was 17.36%.

Warning Sign:

Shivam Cements Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -37.8%.

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

XNEP:SHIVM' s Operating Margin % Range Over the Past 10 Years
Min: 1.93   Med: 17.49   Max: 21.01
Current: 5.72


XNEP:SHIVM's Operating Margin % is ranked worse than
53.87% of 401 companies
in the Building Materials industry
Industry Median: 6.54 vs XNEP:SHIVM: 5.72

Shivam Cements's 5-Year Average Operating Margin % Growth Rate was -37.80% per year.

Shivam Cements's Operating Income for the three months ended in Apr. 2025 was NPR398 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2025 was NPR408 Mil.


Shivam Cements Operating Margin % Historical Data

The historical data trend for Shivam 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.

Shivam Cements Operating Margin % Chart

Shivam Cements Annual Data
Trend Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
Operating Margin %
Get a 7-Day Free Trial 17.49 18.22 7.31 5.01 1.93

Shivam Cements Quarterly Data
Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25
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 2.65 2.95 -5.90 2.42 17.36

Competitive Comparison of Shivam Cements's Operating Margin %

For the Building Materials subindustry, Shivam 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.


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

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

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


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Shivam 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.

Shivam Cements's Operating Margin % for the fiscal year that ended in Jul. 2024 is calculated as

Operating Margin %=Operating Income (A: Jul. 2024 ) / Revenue (A: Jul. 2024 )
=149.583 / 7732.69
=1.93 %

Shivam Cements's Operating Margin % for the quarter that ended in Apr. 2025 is calculated as

Operating Margin %=Operating Income (Q: Apr. 2025 ) / Revenue (Q: Apr. 2025 )
=398.422 / 2295.6
=17.36 %

* 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.


Shivam Cements  (XNEP:SHIVM) 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.


Shivam Cements Operating Margin % Related Terms

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Shivam Cements Business Description

Traded in Other Exchanges
N/A
Address
Siddhartha Insurance Bhawan, 2nd Floor, GPO Box 13478, Anamnagar, Kathmandu, NPL
Shivam Cements Ltd is a Nepal based company engaged in manufacturing of cement and clinker from its self owned limestone quarries. The main product of the company include the Ordinary Portland Cement. Its products include OPC cement 43 Grade and OPC cement 53 grade.

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