Kansai Nerolac Paints (BOM:500165) Operating Income : ₹8,373 Mil (TTM As of Mar. 2024)

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What is Kansai Nerolac Paints Operating Income?

Kansai Nerolac Paints's Operating Income for the three months ended in Mar. 2024 was ₹1,311 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was ₹8,373 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Kansai Nerolac Paints's Operating Income for the three months ended in Mar. 2024 was ₹1,311 Mil. Kansai Nerolac Paints's Revenue for the three months ended in Mar. 2024 was ₹17,364 Mil. Therefore, Kansai Nerolac Paints's Operating Margin % for the quarter that ended in Mar. 2024 was 7.55%.

Warning Sign:

Kansai Nerolac Paints Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -6.3%.

Kansai Nerolac Paints's 5-Year average Growth Rate for Operating Margin % was -6.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Kansai Nerolac Paints's annualized ROC % for the quarter that ended in Mar. 2024 was 8.11%. Kansai Nerolac Paints's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 16.06%.

Kansai Nerolac Paints Operating Income Historical Data

The historical data trend for Kansai Nerolac Paints's Operating Income 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.

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Kansai Nerolac Paints Operating Income Chart

Kansai Nerolac Paints Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Operating Income

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6,623.40

6,979.80

4,795.90

6,379.10

8,372.90

Kansai Nerolac Paints Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Operating Income	Get a 7-Day Free Trial															1,223.10	2,848.20	2,258.50	1,955.70	1,310.50

Kansai Nerolac Paints Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was ₹8,373 Mil.

Kansai Nerolac Paints (BOM:500165) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Kansai Nerolac Paints's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	5242 * ( 1 - 27% )	/	( (0	+	47163.5)	/ 1 )
=	3826.66	/	47163.5
=	8.11 %

where

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

	Invested Capital		(Q: Mar. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	74097.2	-	11126.5	-	( 15807.2	-	max(0, 15205.6	-	47490.4	+	15807.2	))
=	47163.5

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

Kansai Nerolac Paints's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2023		Q: Mar. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	6543.2	/	( ( (0 + max(0, 0))	+	(22981.1 + max(17771.4, 0)) )	/	1 )
=	6543.2	/	( ( 0	+	40752.5 )	/	1 )
=	6543.2	/	40752.5
=	16.06 %

where Working Capital is:

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	0)	-	(0	+	0	+	0)
=	0

	Working Capital		(Q: Mar. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(13348.8	+	16874.6	+	1393.5)	-	(11126.5	+	0	+	2719)
=	17771.4

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Kansai Nerolac Paints'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 )
	=	1310.5	/	17364.1
	=	7.55 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, 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 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.

Kansai Nerolac Paints Operating Income Related Terms

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Kansai Nerolac Paints (BOM:500165) Business Description

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KANSAINER:India

Address

N. M. Joshi Marg, 28th Floor, A-Wing, Marathon Futurex, Mafatlal Mills Compound, Lower Parel, Mumbai, MH, IND, 400013

Website

https://www.nerolac.com

Kansai Nerolac Paints Ltd (or KNPL) is a paint company headquartered in India. KNPL operates through its paint business to provide a wide range of products and solutions in industrial and decorative coatings. KNPL's decorative coating solutions are used by customers in segments such as adhesives, wood, and construction chemicals. KNPL's industrial coatings include automotive, general industrial, powder, and high performance. The company's industrial coating products and services are applied to vehicles, electrical and agricultural equipment, refrigerators, and railways, among others. KNPL has operations in India, Nepal, Sri Lanka, and Bangladesh, with most of its sales from its activities in India.

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