Question

Select a key performance indicator (KPI) for an industry and measure 5 companies against it.

Answer 1

Operating profit margin is the margin of operating profit to that of revenue.It doesn't account for Interest payments and taxes. The higher the operating profit of a company, the better Operating performance it has.

If we take operating profit margin as a key performance indicator which is a part of Financial Matrix of different pharmaceuticals company in Indian pharmaceutical industry -

1. Sun Pharma- This Company saw an operating Profit margin of 21.9%.

2. Divis laboratories- This Company saw an operating Profit margin of 35.5%.

3. Dr Reddy's laboratories- This company saw a jump in operating profit margin to 45%

4. Lupin- This company saw an operating profit margin of around 21%.

5. Abbott India- This MNC pharmaceutical company which have it's unit in india saw an operating profit margin of around 16%

We can say that among thse company in terms of operating profit margin, Dr Reddy's and Divis laboratory stands out and it can be seen through their performance of continuously hitting 52 Week highs in these troublesome times of Covid 19.