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Graphite India (BOM:509488) Gross Margin % : 25.42% (As of Mar. 2024)


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What is Graphite India Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Graphite India's Gross Profit for the three months ended in Mar. 2024 was ₹1,830 Mil. Graphite India's Revenue for the three months ended in Mar. 2024 was ₹7,200 Mil. Therefore, Graphite India's Gross Margin % for the quarter that ended in Mar. 2024 was 25.42%.

Warning Sign:

Graphite India Ltd gross margin has been in long-term decline. The average rate of decline per year is -8.1%.


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

BOM:509488' s Gross Margin % Range Over the Past 10 Years
Min: 24.34   Med: 48.88   Max: 77.67
Current: 25.73


During the past 13 years, the highest Gross Margin % of Graphite India was 77.67%. The lowest was 24.34%. And the median was 48.88%.

BOM:509488's Gross Margin % is ranked worse than
52.18% of 2942 companies
in the Industrial Products industry
Industry Median: 26.42 vs BOM:509488: 25.73

Graphite India had a gross margin of 25.42% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Graphite India was -8.10% per year.


Graphite India Gross Margin % Historical Data

The historical data trend for Graphite 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.

Graphite India Gross Margin % Chart

Graphite India 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 24.34 30.78 52.00 48.26 25.73

Graphite India 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 40.55 18.34 26.48 33.19 25.42

Competitive Comparison of Graphite India's Gross Margin %

For the Electrical Equipment & Parts subindustry, Graphite 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.


Graphite India's Gross Margin % Distribution in the Industrial Products Industry

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

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



Graphite India Gross Margin % Calculation

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

Graphite India'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 )
=7590 / 29500
=(Revenue - Cost of Goods Sold) / Revenue
=(29500 - 21910) / 29500
=25.73 %

Graphite India'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 )
=1830 / 7200
=(Revenue - Cost of Goods Sold) / Revenue
=(7200 - 5370) / 7200
=25.42 %

* 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.


Graphite India  (BOM:509488) 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

Graphite India had a gross margin of 25.42% for the quarter that ended in Mar. 2024 => 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.


Graphite India Gross Margin % Related Terms

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Graphite India (BOM:509488) Business Description

Traded in Other Exchanges
Address
31, Chowringhee Road, Kolkata, WB, IND, 700 016
Graphite India Ltd is an industrial products manufacturer in India. It manufactures graphite electrodes and graphite-based products. Its segments are Graphite and Carbon Segment and Other segments. The company also manufactures other products like Impervious Graphite Equipment and Spares, steel and alloy steel, reinforced plastic pipes, and many more.

Graphite India (BOM:509488) Headlines

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