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Salzer Electronics (BOM:517059) Gross Margin % : 26.66% (As of Dec. 2023)


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What is Salzer Electronics Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Salzer Electronics's Gross Profit for the three months ended in Dec. 2023 was ₹721 Mil. Salzer Electronics's Revenue for the three months ended in Dec. 2023 was ₹2,703 Mil. Therefore, Salzer Electronics's Gross Margin % for the quarter that ended in Dec. 2023 was 26.66%.

Warning Sign:

Salzer Electronics Ltd gross margin has been in long-term decline. The average rate of decline per year is -4.5%.


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

BOM:517059' s Gross Margin % Range Over the Past 10 Years
Min: 20.77   Med: 25.88   Max: 31.2
Current: 22.44


During the past 13 years, the highest Gross Margin % of Salzer Electronics was 31.20%. The lowest was 20.77%. And the median was 25.88%.

BOM:517059's Gross Margin % is ranked worse than
62.17% of 2942 companies
in the Industrial Products industry
Industry Median: 26.4 vs BOM:517059: 22.44

Salzer Electronics had a gross margin of 26.66% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Salzer Electronics was -4.50% per year.


Salzer Electronics Gross Margin % Historical Data

The historical data trend for Salzer Electronics'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.

Salzer Electronics Gross Margin % Chart

Salzer Electronics 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 23.98 25.55 21.96 20.77 21.41

Salzer Electronics 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 24.40 17.98 21.89 23.71 26.66

Competitive Comparison of Salzer Electronics's Gross Margin %

For the Electrical Equipment & Parts subindustry, Salzer Electronics'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.


Salzer Electronics's Gross Margin % Distribution in the Industrial Products Industry

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

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



Salzer Electronics Gross Margin % Calculation

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

Salzer Electronics'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 )
=2215.7 / 10347.1
=(Revenue - Cost of Goods Sold) / Revenue
=(10347.1 - 8131.392) / 10347.1
=21.41 %

Salzer Electronics'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 )
=720.7 / 2703.491
=(Revenue - Cost of Goods Sold) / Revenue
=(2703.491 - 1982.78) / 2703.491
=26.66 %

* 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.


Salzer Electronics  (BOM:517059) 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

Salzer Electronics had a gross margin of 26.66% 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.


Salzer Electronics Gross Margin % Related Terms

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Salzer Electronics (BOM:517059) Business Description

Traded in Other Exchanges
Address
Samichettipalayam, Jothipuram, Coimbatore, TN, IND, 641047
Salzer Electronics Ltd is engaged in manufacturing cam-operated rotary switches, selector switches, wiring ducts, voltmeter switches, and allied products. Salzer Electronics has four business divisions that are industrial switchgears, copper business, building products, and energy savers. The wires and cables segment generates maximum revenue for the company.

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