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Narayana Hrudayalaya (NSE:NH) Operating Margin % : 17.93% (As of Dec. 2023)


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What is Narayana Hrudayalaya Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Narayana Hrudayalaya's Operating Income for the three months ended in Dec. 2023 was ₹2,158 Mil. Narayana Hrudayalaya's Revenue for the three months ended in Dec. 2023 was ₹12,036 Mil. Therefore, Narayana Hrudayalaya's Operating Margin % for the quarter that ended in Dec. 2023 was 17.93%.

Good Sign:

Narayana Hrudayalaya Ltd operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Narayana Hrudayalaya's Operating Margin % or its related term are showing as below:

NSE:NH' s Operating Margin % Range Over the Past 10 Years
Min: 0.88   Med: 7.31   Max: 18.82
Current: 18.82


NSE:NH's Operating Margin % is ranked better than
87.85% of 650 companies
in the Healthcare Providers & Services industry
Industry Median: 3.95 vs NSE:NH: 18.82

Narayana Hrudayalaya's 5-Year Average Operating Margin % Growth Rate was 18.30% per year.

Narayana Hrudayalaya's Operating Income for the three months ended in Dec. 2023 was ₹2,158 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was ₹9,342 Mil.


Narayana Hrudayalaya Operating Margin % Historical Data

The historical data trend for Narayana Hrudayalaya'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.

Narayana Hrudayalaya Operating Margin % Chart

Narayana Hrudayalaya 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 5.90 8.21 0.88 13.64 17.46

Narayana Hrudayalaya Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 17.47 20.78 17.17 19.37 17.93

Competitive Comparison of Narayana Hrudayalaya's Operating Margin %

For the Medical Care Facilities subindustry, Narayana Hrudayalaya'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.


Narayana Hrudayalaya's Operating Margin % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Narayana Hrudayalaya's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Narayana Hrudayalaya's Operating Margin % falls into.



Narayana Hrudayalaya 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.

Narayana Hrudayalaya'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 )
=7901.45 / 45247.65
=17.46 %

Narayana Hrudayalaya's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=2157.57 / 12036.37
=17.93 %

* 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.


Narayana Hrudayalaya  (NSE:NH) 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.


Narayana Hrudayalaya Operating Margin % Related Terms

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Narayana Hrudayalaya (NSE:NH) Business Description

Traded in Other Exchanges
Address
Hosur Road, Anekal Taluk, 261/A, 2nd Floor, Bommasandra Industrial Area, Bengaluru, KA, IND, 560099
Narayana Hrudayalaya Ltd is an India-based medical and healthcare service provider. It operates a chain of multispecialty, tertiary healthcare facilities. The hospital offers medical services in the field of dermatology, haematology, neurology, orthopaedics, paediatrics, cancer care, cardiology, pulmonology, and others. It also provides surgery services such as Cardiac Surgery, Neurosurgery, Thoracic Surgery, Renal Transplant and others. Imaging and radiology services, Physiotherapy sessions, and blood banks service are some of the diagnostics and support provided by the hospital. It has business operations in India and the Rest of the world, of which maximum revenue is generated from the business operations in India.

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