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Crompton Greaves Consumer Electricals (NSE:CROMPTON) Operating Margin % : 8.60% (As of Mar. 2024)


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What is Crompton Greaves Consumer Electricals Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Crompton Greaves Consumer Electricals's Operating Income for the three months ended in Mar. 2024 was ₹1,686 Mil. Crompton Greaves Consumer Electricals's Revenue for the three months ended in Mar. 2024 was ₹19,610 Mil. Therefore, Crompton Greaves Consumer Electricals's Operating Margin % for the quarter that ended in Mar. 2024 was 8.60%.

Warning Sign:

Crompton Greaves Consumer Electricals Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -9%.

The historical rank and industry rank for Crompton Greaves Consumer Electricals's Operating Margin % or its related term are showing as below:

NSE:CROMPTON' s Operating Margin % Range Over the Past 10 Years
Min: 8   Med: 12.68   Max: 14.71
Current: 8


NSE:CROMPTON's Operating Margin % is ranked better than
62.44% of 418 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 5.44 vs NSE:CROMPTON: 8.00

Crompton Greaves Consumer Electricals's 5-Year Average Operating Margin % Growth Rate was -9.00% per year.

Crompton Greaves Consumer Electricals's Operating Income for the three months ended in Mar. 2024 was ₹1,686 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was ₹5,849 Mil.


Crompton Greaves Consumer Electricals Operating Margin % Historical Data

The historical data trend for Crompton Greaves Consumer Electricals'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.

Crompton Greaves Consumer Electricals Operating Margin % Chart

Crompton Greaves Consumer Electricals 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 12.68 14.71 13.64 9.53 8.00

Crompton Greaves Consumer Electricals 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 9.75 8.34 7.99 6.93 8.60

Competitive Comparison of Crompton Greaves Consumer Electricals's Operating Margin %

For the Furnishings, Fixtures & Appliances subindustry, Crompton Greaves Consumer Electricals'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.


Crompton Greaves Consumer Electricals's Operating Margin % Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Crompton Greaves Consumer Electricals's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Crompton Greaves Consumer Electricals's Operating Margin % falls into.



Crompton Greaves Consumer Electricals 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.

Crompton Greaves Consumer Electricals'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 )
=5848.7 / 73128.1
=8.00 %

Crompton Greaves Consumer Electricals'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 )
=1685.6 / 19610
=8.60 %

* 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.


Crompton Greaves Consumer Electricals  (NSE:CROMPTON) 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.


Crompton Greaves Consumer Electricals Operating Margin % Related Terms

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Crompton Greaves Consumer Electricals (NSE:CROMPTON) Business Description

Traded in Other Exchanges
Address
Equinox Business Park, Lal Bahadur Shastri Marg, Tower 3, 1st Floor, East Wing, Kurla (West), Mumbai, MH, IND, 400 070
Crompton Greaves Consumer Electricals Ltd manufactures and markets consumer products in India. Its operating segments are Electric Consumer Durables; Lighting Products and Butterfly. The company offers fans comprising ceiling, table, pedestal, wall-mounted, domestic exhaust, special, and personal fans; professional LED and conventional lighting, solar, and lighting automation products, as well as lamps and consumer luminaires; and surface and submersible pumps, pumping systems, and accessories. The company operates predominantly in the domestic market, in India.

Crompton Greaves Consumer Electricals (NSE:CROMPTON) Headlines

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