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Airo Lam (NSE:AIROLAM) Operating Income : ₹154 Mil (TTM As of Jun. 2023)


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What is Airo Lam Operating Income?

Airo Lam's Operating Income for the three months ended in Jun. 2023 was ₹47 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2023 was ₹154 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Airo Lam's Operating Income for the three months ended in Jun. 2023 was ₹47 Mil. Airo Lam's Revenue for the three months ended in Jun. 2023 was ₹486 Mil. Therefore, Airo Lam's Operating Margin % for the quarter that ended in Jun. 2023 was 9.76%.

Airo Lam's 5-Year average Growth Rate for Operating Margin % was -0.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Airo Lam's annualized ROC % for the quarter that ended in Jun. 2023 was 11.01%. Airo Lam's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2023 was 16.44%.


Airo Lam Operating Income Historical Data

The historical data trend for Airo Lam'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.

Airo Lam Operating Income Chart

Airo Lam Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 79.47 83.99 120.37 122.68 142.23

Airo Lam Quarterly Data
Mar15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23
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 36.86 19.87 30.15 56.66 47.46

Airo Lam 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 Jun. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was ₹154 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.


Airo Lam  (NSE:AIROLAM) Operating Income Explanation

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

Airo Lam's annualized ROC % for the quarter that ended in Jun. 2023 is calculated as:

ROC % (Q: Jun. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2023 ) + Invested Capital (Q: Jun. 2023 ))/ count )
=189.852 * ( 1 - 27.57% )/( (1158.834 + 1338.172)/ 2 )
=137.5098036/1248.503
=11.01 %

where

Invested Capital(Q: Mar. 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))
=1621.691 - 415.488 - ( 47.369 - max(0, 795.39 - 1251.437+47.369))
=1158.834

Invested Capital(Q: Jun. 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))
=1654.518 - 291.238 - ( 25.108 - max(0, 804.219 - 1280.64+25.108))
=1338.172

Note: The Operating Income data used here is four times the quarterly (Jun. 2023) data.

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

Airo Lam's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2023  Q: Jun. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=189.856/( ( (358.561 + max(776.404, 0)) + (360.319 + max(813.908, 0)) )/ 2 )
=189.856/( ( 1134.965 + 1174.227 )/ 2 )
=189.856/1154.596
=16.44 %

where Working Capital is:

Working Capital(Q: Mar. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(493.036 + 628.757 + 82.275) - (415.488 + 0 + 12.176)
=776.404

Working Capital(Q: Jun. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(536.254 + 636.445 + 70.333) - (291.238 + 0 + 137.886)
=813.908

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2023) EBIT data.

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

Airo Lam's Operating Margin % for the quarter that ended in Jun. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2023 )/Revenue (Q: Jun. 2023 )
=47.463/486.418
=9.76 %

* 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.


Airo Lam Operating Income Related Terms

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Airo Lam (NSE:AIROLAM) Business Description

Traded in Other Exchanges
N/A
Address
Survey No. 355, Nananpur Approach Road, N.H. No.8, Tahsil-Prantij, Himmatnagar, Dalpur, Sabarkantha, GJ, IND, 383120
Airo Lam Ltd is engaged in the manufacturing of High-Pressure decorative laminates. Its products are used in kitchen furniture, workshops, bathroom furniture, interior doors, and interior wall linings.

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