GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Ambuja Cements Ltd (BOM:500425) » Definitions » Operating Income

Ambuja Cements (BOM:500425) Operating Income : ₹47,761 Mil (TTM As of Mar. 2024)


View and export this data going back to 1991. Start your Free Trial

What is Ambuja Cements Operating Income?

Ambuja Cements's Operating Income for the three months ended in Mar. 2024 was ₹12,456 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was ₹47,761 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Ambuja Cements's Operating Income for the three months ended in Mar. 2024 was ₹12,456 Mil. Ambuja Cements's Revenue for the three months ended in Mar. 2024 was ₹88,940 Mil. Therefore, Ambuja Cements's Operating Margin % for the quarter that ended in Mar. 2024 was 14.00%.

Good Sign:

Ambuja Cements Ltd operating margin is expanding. Margin expansion is usually a good sign.

Ambuja Cements's 5-Year average Growth Rate for Operating Margin % was 8.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Ambuja Cements's annualized ROC % for the quarter that ended in Mar. 2024 was 10.14%. Ambuja Cements's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 28.99%.


Ambuja Cements Operating Income Historical Data

The historical data trend for Ambuja Cements'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.

* Premium members only.

Ambuja Cements Operating Income Chart

Ambuja Cements Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Mar24
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 28,680.20 34,576.90 38,706.70 50,122.20 47,761.30

Ambuja Cements Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Jun23 Sep23 Dec23 Mar24
Operating Income 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 37.80 12,952.30 9,209.20 13,144.00 12,455.80

Ambuja Cements 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 ₹47,761 Mil.

* 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.


Ambuja Cements  (BOM:500425) Operating Income Explanation

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

Ambuja Cements'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 )
=49823.2 * ( 1 - 4.71% )/( (0 + 468108.4)/ 1 )
=47476.52728/468108.4
=10.14 %

where

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))
=652978.1 - 57636.9 - ( 175425.6 - max(0, 121288.8 - 248521.6+175425.6))
=468108.4

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

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

Ambuja Cements'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 )
=67761.6/( ( (0 + max(0, 0)) + (233734.6 + max(-46444.7, 0)) )/ 1 )
=67761.6/( ( 0 + 233734.6 )/ 1 )
=67761.6/233734.6
=28.99 %

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)
=(12131.4 + 36085.5 + 24816.7) - (57636.9 + 0 + 61841.4)
=-46444.7

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 %:

Ambuja Cements'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 )
=12455.8/88939.9
=14.00 %

* 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.

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.


Ambuja Cements Operating Income Related Terms

Thank you for viewing the detailed overview of Ambuja Cements's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.


Ambuja Cements (BOM:500425) Business Description

Traded in Other Exchanges
Address
MIDC Cross Road ‘B’, Off Andheri-Kurla Road, Elegant Business Park, Andheri (East), Mumbai, MH, IND, 400059
Ambuja Cements Ltd manufactures and sells cement, concrete, and cement-related products to the building and construction industries. The company's portfolio of products includes Portland Pozolona cement and ordinary Portland cement. The vast majority of the firm's revenue is generated in India. Ambuja Cements has operations throughout India and uses a network of ports, bulk cement terminals, captive ships, and railroads to transport its products to both warehouses and directly to customers. The company also has a technical services team that partners with customers to teach concrete mixing and curing techniques.

Ambuja Cements (BOM:500425) Headlines

No Headlines