Gross Operating Profit Margin:

Gross operating profit margin measure the percentage of each revenue amount remaining after the firm has paid for its service. The operating profit of ULC is little bit higher than IDLC. Year to year comparison in both companies was same for the year ended 1997 & 1998.

DLC                                                           1997                        1998

   Gross  Operating Profit                       114,396,230              115,628,454
   Revenue                                              768,548,576              816,628,100
   Gross profit margin                               14.88%                      14.16%


    Gross Profit Margin                            78,864,232               104,146,107
    Revenue                                              523,398,602             687,137,586
    Gross Profit Margin                                15.48%                    15.16%

Net Profit Margin:

                                                                         1997                       1998

    Net  Profit  after tax                                 89,396,230               47,628,454
    Revenue                                                  768,548,576             816,628,100
    Net profit margin                                        11.63%                       5.83%


    Net profit after tax                                     63,864,232            44,146,107
    Revenue                                                    523,398,602           687,137,586
    Net profit margin                                         12.20%                     6.42%

The net profit margin measure the percentage of each sales amount remaining after all costs and expenses, including interest and taxes, have been deducted. Per above calculation ULC’s net profit margin is better than IDLC. On the other hand year 1997 net profit margin was much better than 1998 in both companies due to net profit after tax much reduced then increased revenue.