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Blue Star (BOM:500067) Operating Margin % : 6.42% (As of Mar. 2024)


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What is Blue Star Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Blue Star's Operating Income for the three months ended in Mar. 2024 was ₹2,135 Mil. Blue Star's Revenue for the three months ended in Mar. 2024 was ₹33,278 Mil. Therefore, Blue Star's Operating Margin % for the quarter that ended in Mar. 2024 was 6.42%.

Good Sign:

Blue Star Ltd operating margin is expanding. Margin expansion is usually a good sign.

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

BOM:500067' s Operating Margin % Range Over the Past 10 Years
Min: 3.58   Med: 4.4   Max: 5.86
Current: 5.86


BOM:500067's Operating Margin % is ranked better than
54.55% of 1650 companies
in the Construction industry
Industry Median: 5.095 vs BOM:500067: 5.86

Blue Star's 5-Year Average Operating Margin % Growth Rate was 4.50% per year.

Blue Star's Operating Income for the three months ended in Mar. 2024 was ₹2,135 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was ₹5,672 Mil.


Blue Star Operating Margin % Historical Data

The historical data trend for Blue Star'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.

Blue Star Operating Margin % Chart

Blue Star 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 3.84 3.58 4.43 5.11 5.86

Blue Star Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 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 5.96 5.49 5.27 5.88 6.42

Competitive Comparison of Blue Star's Operating Margin %

For the Building Products & Equipment subindustry, Blue Star'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.


Blue Star's Operating Margin % Distribution in the Construction Industry

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

* The bar in red indicates where Blue Star's Operating Margin % falls into.



Blue Star 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.

Blue Star'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 )
=5672.3 / 96853.6
=5.86 %

Blue Star's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=2134.8 / 33277.7
=6.42 %

* 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.


Blue Star  (BOM:500067) 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.


Blue Star Operating Margin % Related Terms

Thank you for viewing the detailed overview of Blue Star's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Blue Star (BOM:500067) Business Description

Traded in Other Exchanges
Address
254 D, Dr Annie Besant Road, Band Box House, 4th Floor, Worli, Mumbai, MH, IND, 400 030
Blue Star Ltd is an India-based air conditioning and commercial refrigeration company. It serves corporate, commercial, and residential entities. The company's operating segment includes Electro-Mechanical Projects and Commercial Air Conditioning Systems; Unitary Products and Professional Electronics and Industrial Systems. It generates maximum revenue from the Electro-Mechanical Projects and Commercial Air-conditioning Systems segment which includes central air-conditioning projects, Electrical Contracting business, and Packaged air-conditioning businesses including manufacturing and after-sales service.

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