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Paramount Cosmetics (India) (BOM:507970) Gross Margin % : 24.36% (As of Dec. 2023)


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What is Paramount Cosmetics (India) Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Paramount Cosmetics (India)'s Gross Profit for the three months ended in Dec. 2023 was ₹15.3 Mil. Paramount Cosmetics (India)'s Revenue for the three months ended in Dec. 2023 was ₹62.8 Mil. Therefore, Paramount Cosmetics (India)'s Gross Margin % for the quarter that ended in Dec. 2023 was 24.36%.

Warning Sign:

Paramount Cosmetics (India) Ltd gross margin has been in long-term decline. The average rate of decline per year is -5.4%.


The historical rank and industry rank for Paramount Cosmetics (India)'s Gross Margin % or its related term are showing as below:

BOM:507970' s Gross Margin % Range Over the Past 10 Years
Min: 24.73   Med: 56.97   Max: 72.67
Current: 24.73


During the past 13 years, the highest Gross Margin % of Paramount Cosmetics (India) was 72.67%. The lowest was 24.73%. And the median was 56.97%.

BOM:507970's Gross Margin % is ranked worse than
51.86% of 1805 companies
in the Consumer Packaged Goods industry
Industry Median: 25.35 vs BOM:507970: 24.73

Paramount Cosmetics (India) had a gross margin of 24.36% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Paramount Cosmetics (India) was -5.40% per year.


Paramount Cosmetics (India) Gross Margin % Historical Data

The historical data trend for Paramount Cosmetics (India)'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.

* Premium members only.

Paramount Cosmetics (India) Gross Margin % Chart

Paramount Cosmetics (India) Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 64.06 67.48 70.02 65.52 48.44

Paramount Cosmetics (India) Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 49.59 11.69 46.56 24.04 24.36

Competitive Comparison of Paramount Cosmetics (India)'s Gross Margin %

For the Household & Personal Products subindustry, Paramount Cosmetics (India)'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.


Paramount Cosmetics (India)'s Gross Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Paramount Cosmetics (India)'s Gross Margin % distribution charts can be found below:

* The bar in red indicates where Paramount Cosmetics (India)'s Gross Margin % falls into.



Paramount Cosmetics (India) Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Paramount Cosmetics (India)'s Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )=Gross Profit (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=129.4 / 267.184
=(Revenue - Cost of Goods Sold) / Revenue
=(267.184 - 137.767) / 267.184
=48.44 %

Paramount Cosmetics (India)'s Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=15.3 / 62.75
=(Revenue - Cost of Goods Sold) / Revenue
=(62.75 - 47.465) / 62.75
=24.36 %

* 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.


Paramount Cosmetics (India)  (BOM:507970) 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

Paramount Cosmetics (India) had a gross margin of 24.36% for the quarter that ended in Dec. 2023 => 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.


Paramount Cosmetics (India) Gross Margin % Related Terms

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Paramount Cosmetics (India) (BOM:507970) Business Description

Traded in Other Exchanges
N/A
Address
No. 29, Mahatma Gandhi Road, 902-904, 9th Floor, Prestige Meridian-1, Bangalore, KA, IND, 560001
Paramount Cosmetics (India) Ltd operates in the cosmetics industry. The company is a manufacturer and marketer of cosmetics in India. The firm offers cosmetic products under the brands - Shilpa, Sunspot, Kromme, and Instinct. It operates in five segments namely body care, hair care, face care, hand care and color cosmetics. The company operates within India and outside India of which maximum revenue is generated from India.

Paramount Cosmetics (India) (BOM:507970) Headlines

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