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Allied Digital Services (BOM:532875) Operating Income : ₹670 Mil (TTM As of Mar. 2024)


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What is Allied Digital Services Operating Income?

Allied Digital Services's Operating Income for the three months ended in Mar. 2024 was ₹203 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was ₹670 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Allied Digital Services's Operating Income for the three months ended in Mar. 2024 was ₹203 Mil. Allied Digital Services's Revenue for the three months ended in Mar. 2024 was ₹1,768 Mil. Therefore, Allied Digital Services's Operating Margin % for the quarter that ended in Mar. 2024 was 11.51%.

Good Sign:

Allied Digital Services Ltd operating margin is expanding. Margin expansion is usually a good sign.

Allied Digital Services's 5-Year average Growth Rate for Operating Margin % was 7.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Allied Digital Services's annualized ROC % for the quarter that ended in Mar. 2024 was 11.94%. Allied Digital Services's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 35.87%.


Allied Digital Services Operating Income Historical Data

The historical data trend for Allied Digital Services'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.

Allied Digital Services Operating Income Chart

Allied Digital Services Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 280.30 231.50 497.50 713.30 670.20

Allied Digital Services Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 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 142.80 137.60 163.80 165.60 203.40

Allied Digital Services 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 ₹670 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.


Allied Digital Services  (BOM:532875) Operating Income Explanation

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

Allied Digital Services'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 )
=813.6 * ( 1 - 24.93% )/( (0 + 5113.3)/ 1 )
=610.76952/5113.3
=11.94 %

where

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

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

Allied Digital Services'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 )
=819.2/( ( (0 + max(0, 0)) + (748.5 + max(1535.4, 0)) )/ 1 )
=819.2/( ( 0 + 2283.9 )/ 1 )
=819.2/2283.9
=35.87 %

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)
=(1499 + 480.9 + 319.4) - (507.3 + 0 + 256.6)
=1535.4

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 %:

Allied Digital Services'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 )
=203.4/1767.7
=11.51 %

* 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.


Allied Digital Services Operating Income Related Terms

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Allied Digital Services (BOM:532875) Business Description

Traded in Other Exchanges
Address
NCPA Road, Block No. III, Nariman Point, Premises No. 13A, 13th Floor, Earnest House, Backbay Reclamation, Mumbai, MH, IND, 400 021
Allied Digital Services Ltd is an Indian-based information technology service and solutions offering company. The company provides a wide range of information technology and consultancy services such as infrastructure services, end-user IT support, IT asset lifecycle, enterprise applications, and integrated solutions. The business activity of the firm is operated through the Enterprise Computing based Solutions and Infrastructure Management based Solutions segments. Geographically the business presence of the firm is seen across the region of India, the United States, the UK, Singapore, Australia, Ireland, Brazil, Japan, and China.

Allied Digital Services (BOM:532875) Headlines

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