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Alfred Herbert (India) (BOM:505216) Gross Margin % : 78.84% (As of Dec. 2023)


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What is Alfred Herbert (India) Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Alfred Herbert (India)'s Gross Profit for the three months ended in Dec. 2023 was ₹0.61 Mil. Alfred Herbert (India)'s Revenue for the three months ended in Dec. 2023 was ₹0.78 Mil. Therefore, Alfred Herbert (India)'s Gross Margin % for the quarter that ended in Dec. 2023 was 78.84%.

Warning Sign:

Alfred Herbert (India) Ltd gross margin has been in long-term decline. The average rate of decline per year is -11.3%.


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

BOM:505216' s Gross Margin % Range Over the Past 10 Years
Min: -53.29   Med: 32.24   Max: 42.37
Current: -53.29


During the past 13 years, the highest Gross Margin % of Alfred Herbert (India) was 42.37%. The lowest was -53.29%. And the median was 32.24%.

BOM:505216's Gross Margin % is ranked worse than
98.98% of 2942 companies
in the Industrial Products industry
Industry Median: 26.44 vs BOM:505216: -53.29

Alfred Herbert (India) had a gross margin of 78.84% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Alfred Herbert (India) was -11.30% per year.


Alfred Herbert (India) Gross Margin % Historical Data

The historical data trend for Alfred Herbert (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.

Alfred Herbert (India) Gross Margin % Chart

Alfred Herbert (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 41.13 33.25 5.86 20.77 26.42

Alfred Herbert (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 - - - - 78.84

Competitive Comparison of Alfred Herbert (India)'s Gross Margin %

For the Specialty Industrial Machinery subindustry, Alfred Herbert (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.


Alfred Herbert (India)'s Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Alfred Herbert (India)'s Gross Margin % distribution charts can be found below:

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



Alfred Herbert (India) Gross Margin % Calculation

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

Alfred Herbert (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 )
=0.8 / 3.02
=(Revenue - Cost of Goods Sold) / Revenue
=(3.02 - 2.222) / 3.02
=26.42 %

Alfred Herbert (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 )
=0.6 / 0.775
=(Revenue - Cost of Goods Sold) / Revenue
=(0.775 - 0.164) / 0.775
=78.84 %

* 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.


Alfred Herbert (India)  (BOM:505216) 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

Alfred Herbert (India) had a gross margin of 78.84% for the quarter that ended in Dec. 2023 => 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.


Alfred Herbert (India) Gross Margin % Related Terms

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Alfred Herbert (India) (BOM:505216) Business Description

Traded in Other Exchanges
N/A
Address
13/3, Strand Road, Herbert House, Kolkata, WB, IND, 700 001
Alfred Herbert (India) Ltd is engaged in the business of manufacturing and trading industrial machinery and spares. The company's operating segment includes Manufacturing Operations, Realty and Business Services, and Others. It generates maximum revenue from the Manufacturing Operations segment. Geographically, it operates only in India. The company serves the engineering, automobile, aeronautical, defense and space industries. It produces a wide range of rubber machinery focusing on the Tyre and Rubber Industry including Tyre Curing Presses, Tyre Building Machines, Mixers, Two Roll Mills, and Tube Presses.

Alfred Herbert (India) (BOM:505216) Headlines

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