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R M Drip & Sprinklers Systems (NSE:RMDRIP) Operating Margin % : 8.58% (As of Sep. 2023)


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What is R M Drip & Sprinklers Systems Operating Margin %?

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%.

The historical rank and industry rank for R M Drip & Sprinklers Systems's Operating Margin % or its related term are showing as below:

NSE:RMDRIP' s Operating Margin % Range Over the Past 10 Years
Min: -18.84   Med: 6.28   Max: 23.64
Current: 23.64


NSE:RMDRIP's Operating Margin % is ranked better than
95.17% of 207 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 7.44 vs NSE:RMDRIP: 23.64

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

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.


R M Drip & Sprinklers Systems Operating Margin % Historical Data

The historical data trend for R M Drip & Sprinklers Systems'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.

R M Drip & Sprinklers Systems Operating Margin % Chart

R M Drip & Sprinklers Systems Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -18.84 12.77 6.79 1.77 -2.62

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 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 -26.76 14.84 -85.30 41.20 8.58

Competitive Comparison of R M Drip & Sprinklers Systems's Operating Margin %

For the Farm & Heavy Construction Machinery subindustry, R M Drip & Sprinklers Systems'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.


R M Drip & Sprinklers Systems's Operating Margin % Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, R M Drip & Sprinklers Systems's Operating Margin % distribution charts can be found below:

* The bar in red indicates where R M Drip & Sprinklers Systems's Operating Margin % falls into.



R M Drip & Sprinklers Systems 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.

R M Drip & Sprinklers Systems's Operating Margin % for the fiscal year that ended in Mar. 2023 is calculated as

Operating Margin %=Operating Income (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=-2.867 / 109.541
=-2.62 %

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 %

* 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.


R M Drip & Sprinklers Systems  (NSE:RMDRIP) 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.


R M Drip & Sprinklers Systems Operating Margin % Related Terms

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

Traded in Other Exchanges
N/A
Address
Gat No. 475, Village Gonde, Taluka Sinnar, Nashik, MH, IND, 422113
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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