R M Drip & Sprinklers Systems (NSE:RMDRIP) Operating Income : ₹36.7 Mil (TTM As of Sep. 2023)

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What is R M Drip & Sprinklers Systems Operating Income?

R M Drip & Sprinklers Systems's Operating Income for the six months ended in Sep. 2023 was ₹7.2 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was ₹36.7 Mil.

Warning Sign:

R M Drip & Sprinklers Systems Ltd has recorded a loss in operating income at least once over the past 3 years.

Operating Margin % is calculated as Operating Income divided by its Revenue. R M Drip & Sprinklers Systems's Operating Income for the six months ended in Sep. 2023 was ₹7.2 Mil. R M Drip & Sprinklers Systems's Revenue for the six months ended in Sep. 2023 was ₹83.4 Mil. Therefore, R M Drip & Sprinklers Systems's Operating Margin % for the quarter that ended in Sep. 2023 was 8.58%.

R M Drip & Sprinklers Systems's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. R M Drip & Sprinklers Systems's annualized ROC % for the quarter that ended in Sep. 2023 was 5.21%. R M Drip & Sprinklers Systems's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 was 5.69%.

R M Drip & Sprinklers Systems Operating Income Historical Data

The historical data trend for R M Drip & Sprinklers Systems'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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R M Drip & Sprinklers Systems Operating Income Chart

R M Drip & Sprinklers Systems Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Operating Income

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-42.00

29.67

12.37

3.18

-2.87

R M Drip & Sprinklers Systems Semi-Annual Data
	Mar13	Mar14	Mar15	Mar16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Operating Income	Get a 7-Day Free Trial													-15.06	18.24	-32.36	29.50	7.16

R M Drip & Sprinklers Systems 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 Sep. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was ₹36.7 Mil.

R M Drip & Sprinklers Systems (NSE:RMDRIP) Operating Income Explanation

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

R M Drip & Sprinklers Systems's annualized ROC % for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	14.322 * ( 1 - 0% )	/	( (213.17	+	336.939)	/ 2 )
=	14.322	/	275.0545
=	5.21 %

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	))
=	288.376	-	73.126	-	( 2.08	-	max(0, 115.759	-	235.871	+	2.08	))
=	213.17

	Invested Capital		(Q: Sep. 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	))
=	375.815	-	38.497	-	( 0.379	-	max(0, 96.066	-	296.631	+	0.379	))
=	336.939

Note: The Operating Income data used here is two times the semi-annual (Sep. 2023) data.

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

R M Drip & Sprinklers Systems's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Mar. 2023		Q: Sep. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	14.468	/	( ( (49.683 + max(147.972, 0))	+	(76.374 + max(234.811, 0)) )	/	2 )
=	14.468	/	( ( 197.655	+	311.185 )	/	2 )
=	14.468	/	254.42
=	5.69 %

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)
=	(149.063	+	30.889	+	41.61)	-	(73.126	+	0	+	0.464)
=	147.972

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(163.985	+	117.337	+	1.165)	-	(38.497	+	0	+	9.179)
=	234.811

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Sep. 2023) EBIT data.

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

R M Drip & Sprinklers Systems's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	7.161	/	83.443
	=	8.58 %

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.

R M Drip & Sprinklers Systems Operating Income Related Terms

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R M Drip & Sprinklers Systems (NSE:RMDRIP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » R M Drip & Sprinklers Systems Ltd (NSE:RMDRIP) » Definitions » Operating Income

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Address

Gat No. 475, Village Gonde, Taluka Sinnar, Nashik, MH, IND, 422113

Website

http://www.rmdrip.com

R M Drip & Sprinklers Systems Ltd designs manufacture and sell micro-irrigation equipment. The company's products are Drip Irrigation, Sprinkler Irrigation, Filters, among others. The Company also assists the farmers in designing and installation of its Sprinkler and Drip Irrigations systems according to their needs. The dealer network expands from Maharashtra, Madhya Pradesh, Gujarat, Karnataka and extended its market to Uttar Pradesh, Bihar and Jharkhand.

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