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Butwal Power Co (XNEP:BPCL) Gross Margin % : 55.19% (As of Jan. 2024)


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What is Butwal Power Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Butwal Power Co's Gross Profit for the three months ended in Jan. 2024 was NPR112 Mil. Butwal Power Co's Revenue for the three months ended in Jan. 2024 was NPR203 Mil. Therefore, Butwal Power Co's Gross Margin % for the quarter that ended in Jan. 2024 was 55.19%.


The historical rank and industry rank for Butwal Power Co's Gross Margin % or its related term are showing as below:

XNEP:BPCL' s Gross Margin % Range Over the Past 10 Years
Min: 11.73   Med: 27.34   Max: 41.77
Current: 33.69


During the past 13 years, the highest Gross Margin % of Butwal Power Co was 41.77%. The lowest was 11.73%. And the median was 27.34%.

XNEP:BPCL's Gross Margin % is ranked worse than
52.38% of 399 companies
in the Utilities - Independent Power Producers industry
Industry Median: 35.23 vs XNEP:BPCL: 33.69

Butwal Power Co had a gross margin of 55.19% for the quarter that ended in Jan. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Butwal Power Co was 5.70% per year.


Butwal Power Co Gross Margin % Historical Data

The historical data trend for Butwal Power Co'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.

Butwal Power Co Gross Margin % Chart

Butwal Power Co Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.51 15.21 11.73 19.75 33.99

Butwal Power Co Quarterly Data
Jan19 Apr19 Jul19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 57.27 34.92 29.14 50.88 55.19

Competitive Comparison of Butwal Power Co's Gross Margin %

For the Utilities - Renewable subindustry, Butwal Power Co'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.


Butwal Power Co's Gross Margin % Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Butwal Power Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Butwal Power Co's Gross Margin % falls into.



Butwal Power Co Gross Margin % Calculation

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

Butwal Power Co's Gross Margin for the fiscal year that ended in Jul. 2023 is calculated as

Gross Margin % (A: Jul. 2023 )=Gross Profit (A: Jul. 2023 ) / Revenue (A: Jul. 2023 )
=809.2 / 2380.607
=(Revenue - Cost of Goods Sold) / Revenue
=(2380.607 - 1571.43) / 2380.607
=33.99 %

Butwal Power Co's Gross Margin for the quarter that ended in Jan. 2024 is calculated as


Gross Margin % (Q: Jan. 2024 )=Gross Profit (Q: Jan. 2024 ) / Revenue (Q: Jan. 2024 )
=112.3 / 203.407
=(Revenue - Cost of Goods Sold) / Revenue
=(203.407 - 91.15) / 203.407
=55.19 %

* 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.


Butwal Power Co  (XNEP:BPCL) 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

Butwal Power Co had a gross margin of 55.19% for the quarter that ended in Jan. 2024 => Durable competitive advantage


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.


Butwal Power Co Gross Margin % Related Terms

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Butwal Power Co (XNEP:BPCL) Business Description

Traded in Other Exchanges
N/A
Address
Gangadevi Marga - 313, P.O. Box: 11728, Buddha Nagar, Kathmandu, NPL
Butwal Power Co Ltd is engaged in generation and distribution of electricity. The company is engaged in the development, operation, and maintenance of hydropower plants, engineering and design consultancy of hydropower and infrastructure projects, and manufacturing and repair of hydro-mechanical and electro-mechanical equipment for power plants through its subsidiary companies.

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