Operating margin
AccountingOperating profit as a percentage of revenue.
How much of each rupee of sales survives the cost of actually running the business.
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 3 terms
Operating profit as a percentage of revenue.
How much of each rupee of sales survives the cost of actually running the business.
Income arising from a company’s ordinary operations but not from the sale of its principal goods or services, presented within revenue from operations.
Where scheme receipts, scrap sales and export incentives usually land. Because it is inside revenue it is also inside EBITDA, which is how an operating margin improves without the manufacturing improving.
Remission of Duties and Taxes on Exported Products — a scheme refunding embedded duties and taxes on export value as transferable electronic scrips, notified rate by rate against the customs tariff.
It replaced the earlier MEIS after India’s export incentives were found inconsistent with WTO rules, and it is framed as a remission rather than a subsidy for that reason. It generally sits above EBITDA, so it lifts the operating margin rather than just the tax line.