Gross Margin % is calculated as gross profit divided by its revenue. CESC's Gross Profit for the
three
months ended in Mar. 2024 was ₹13,480 Mil. CESC's Revenue for the
three
months ended in Mar. 2024 was ₹33,870 Mil. Therefore, CESC's Gross Margin % for the quarter that ended in Mar. 2024 was 39.80%.
Warning Sign:
CESC Ltd gross margin has been in long-term decline. The average rate of decline per year is -6%.
The historical rank and industry rank for CESC's Gross Margin % or its related term are showing as below:
BOM:500084'
s Gross Margin % Range Over the Past 10 Years
Min: 31.65 Med: 46.31 Max: 61.75
Current: 31.65
During the past 13 years, the highestGross Margin % of CESC was 61.75%. The lowest was 31.65%. And the median was 46.31%.
BOM:500084's Gross Margin % is ranked better than 53.68% of 503
companies
in the Utilities - Regulated industry
Industry Median: 29.51
vs BOM:500084: 31.65
CESC had a gross margin of 39.80% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for CESC was -6.00% per year.
CESC Gross Margin % Historical Data
The historical data trend for CESC's Gross 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.
For the Utilities - Regulated Electric subindustry, CESC's Gross Margin %, along with its competitors' market caps and Gross 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.
CESC's Gross Margin % Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, CESC's Gross Margin % distribution charts can be found below:
* The bar in red indicates where CESC's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
CESC (BOM:500084) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
CESC had a gross margin of 39.80% for the quarter that ended in Mar. 2024 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
CESC Gross Margin % Related Terms
Thank you for viewing the detailed overview of CESC's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
CESC Ltd is an Indian power utility company engaged in the generation and distribution of electricity. The company owns and operates a portfolio of energy-generating facilities that primarily utilize thermal fuel sources, such as coal. CESC sources its coal mainly from Indian mines either allocated to it by the Government of India or purchased in the marketplace. The company has also made efforts to expand its capacity through renewable energy sites that employ wind, hydro, and solar power. CESC generates the vast majority of its revenue from the sale of electricity to consumer households and commercial establishments in the state of West Bengal in India. Through its subsidiaries, the company is also involved in the retail, business process management, and infrastructure sectors.
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