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Arvind (BOM:500101) Gross Margin % : 52.47% (As of Mar. 2024)


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What is Arvind Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Arvind's Gross Profit for the three months ended in Mar. 2024 was ₹10,885 Mil. Arvind's Revenue for the three months ended in Mar. 2024 was ₹20,745 Mil. Therefore, Arvind's Gross Margin % for the quarter that ended in Mar. 2024 was 52.47%.


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

BOM:500101' s Gross Margin % Range Over the Past 10 Years
Min: 37.85   Med: 45.69   Max: 52.46
Current: 52.46


During the past 13 years, the highest Gross Margin % of Arvind was 52.46%. The lowest was 37.85%. And the median was 45.69%.

BOM:500101's Gross Margin % is ranked better than
81.64% of 1024 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 26.29 vs BOM:500101: 52.46

Arvind had a gross margin of 52.47% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Arvind was 3.30% per year.


Arvind Gross Margin % Historical Data

The historical data trend for Arvind'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.

Arvind Gross Margin % Chart

Arvind Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 39.92 41.32 37.85 46.66 52.46

Arvind Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 49.76 51.48 52.51 53.35 52.47

Competitive Comparison of Arvind's Gross Margin %

For the Textile Manufacturing subindustry, Arvind'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.


Arvind's Gross Margin % Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Arvind's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Arvind's Gross Margin % falls into.



Arvind Gross Margin % Calculation

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

Arvind's Gross Margin for the fiscal year that ended in Mar. 2024 is calculated as

Gross Margin % (A: Mar. 2024 )=Gross Profit (A: Mar. 2024 ) / Revenue (A: Mar. 2024 )
=40590 / 77377.5
=(Revenue - Cost of Goods Sold) / Revenue
=(77377.5 - 36787.5) / 77377.5
=52.46 %

Arvind's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=10884.8 / 20745.1
=(Revenue - Cost of Goods Sold) / Revenue
=(20745.1 - 9860.3) / 20745.1
=52.47 %

* 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.


Arvind  (BOM:500101) 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

Arvind had a gross margin of 52.47% for the quarter that ended in Mar. 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.


Arvind Gross Margin % Related Terms

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


Arvind (BOM:500101) Business Description

Traded in Other Exchanges
Address
Naroda Road, Ahmedabad, GJ, IND, 380025
Arvind Ltd is a textile company. It is engaged in manufacturing Denim, Cotton shirting, knits and bottom weights (Khakis) fabrics, and Jeans and Shirts Garments. The business segments of the group are Textile, Advanced Material, and Others. The contributor to revenue is the Textiles business which offers fabrics, garments, and fabric retail. The advanced Material segment offers human protection fabric and garments, industrial products, advance composites, and automotive fabrics. The group sells its products in India and the Rest of the world.

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