From available public data:
The Operating Profit Margin (OPM) of Supreme Power Equipment Ltd. increased from 7.4% to 17.4% in recent years due to several factors:
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Improved Gross Margin: The company’s gross margin increased from 11.62% to 14.20% over the same period, indicating higher profitability from its core operations[3].
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Reduced Operating Expenses: The company’s operating expenses as a percentage of revenue decreased from 85.38% to 74.91% during the same period, indicating better cost management and efficiency[3].
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Increased Revenue: The company’s revenue increased significantly, from ₹113.59 crore to ₹14.00 crore, over the same period, indicating higher sales and revenue growth[2].
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Improved Return on Capital Employed (ROCE): The company’s ROCE increased from 29.16% to 73.32% during the same period, indicating better utilization of capital and higher returns on investments[1].
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Increased Net Profit Margin: The company’s net profit margin increased from 1.11% to 14.32% during the same period, indicating higher profitability from its operations[1].
These factors collectively contributed to the significant increase in the company’s OPM from 7.4% to 17.4% over the recent years.
Citations:
[1] https://www.indmoney.com/stocks/supreme-power-equipment-ltd-share-price
[2] Supreme Power Equip Share Price Today (14 Jun, 2024), Supreme Power Equipment Stock Price (₹ 256.65) Live NSE/BSE, Supreme Power Equip Shares
[3] Supreme Power Equipment Ltd. | Tijori Finance
[4] Supreme Power Equipment Ltd. Live Share Price, Stock Analysis and Price Estimates
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