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Kavveri Telecom Products (BOM:590041) Gross Margin % : 32.17% (As of Dec. 2023)


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What is Kavveri Telecom Products Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Kavveri Telecom Products's Gross Profit for the three months ended in Dec. 2023 was ₹2.37 Mil. Kavveri Telecom Products's Revenue for the three months ended in Dec. 2023 was ₹7.36 Mil. Therefore, Kavveri Telecom Products's Gross Margin % for the quarter that ended in Dec. 2023 was 32.17%.

Warning Sign:

Kavveri Telecom Products Ltd gross margin has been in long-term decline. The average rate of decline per year is -14.6%.


The historical rank and industry rank for Kavveri Telecom Products's Gross Margin % or its related term are showing as below:

BOM:590041' s Gross Margin % Range Over the Past 10 Years
Min: 14.97   Med: 64.89   Max: 86.27
Current: 14.97


During the past 13 years, the highest Gross Margin % of Kavveri Telecom Products was 86.27%. The lowest was 14.97%. And the median was 64.89%.

BOM:590041's Gross Margin % is ranked worse than
73.01% of 2438 companies
in the Hardware industry
Industry Median: 24.465 vs BOM:590041: 14.97

Kavveri Telecom Products had a gross margin of 32.17% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Kavveri Telecom Products was -14.60% per year.


Kavveri Telecom Products Gross Margin % Historical Data

The historical data trend for Kavveri Telecom Products'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.

Kavveri Telecom Products Gross Margin % Chart

Kavveri Telecom Products 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 61.31 64.89 45.10 39.00 40.41

Kavveri Telecom Products 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 66.51 126.35 80.28 21.86 32.17

Competitive Comparison of Kavveri Telecom Products's Gross Margin %

For the Communication Equipment subindustry, Kavveri Telecom Products'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.


Kavveri Telecom Products's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Kavveri Telecom Products's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Kavveri Telecom Products's Gross Margin % falls into.



Kavveri Telecom Products Gross Margin % Calculation

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

Kavveri Telecom Products'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 )
=11.4 / 28.242
=(Revenue - Cost of Goods Sold) / Revenue
=(28.242 - 16.83) / 28.242
=40.41 %

Kavveri Telecom Products'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 )
=2.4 / 7.357
=(Revenue - Cost of Goods Sold) / Revenue
=(7.357 - 4.99) / 7.357
=32.17 %

* 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.


Kavveri Telecom Products  (BOM:590041) 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

Kavveri Telecom Products had a gross margin of 32.17% 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.


Kavveri Telecom Products Gross Margin % Related Terms

Thank you for viewing the detailed overview of Kavveri Telecom Products's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Kavveri Telecom Products (BOM:590041) Business Description

Traded in Other Exchanges
Address
Bannerghatta Road, Kavveri Industrial Complex, Plot No. 31-36, 1st Floor, 1st Main, 2nd Stage, Arekere MICO Layout, Bangalore, KA, IND, 560076
Kavveri Telecom Products Ltd is an Indian firm engaged in the manufacture of telecom subsystems hardware equipment and solutions for the telecom, radio frequency products and antennae, defence, and aerospace segments. It designs, develops, tests, and manufactures a range of wireless telecom products, from concept to deployment. also provides total turnkey solutions for coverage and capacity enhancement requirements for GSM 3G and CDMA carriers in India. The product portfolio includes Antennas, RF Components, Cables and Connectors, Repeaters, TMA/TMB and energy-conserving solar products.

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