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Kay Power & Paper (BOM:530255) Gross Margin % : 9.25% (As of Mar. 2024)


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What is Kay Power & Paper Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Kay Power & Paper's Gross Profit for the three months ended in Mar. 2024 was ₹10.4 Mil. Kay Power & Paper's Revenue for the three months ended in Mar. 2024 was ₹112.3 Mil. Therefore, Kay Power & Paper's Gross Margin % for the quarter that ended in Mar. 2024 was 9.25%.

Warning Sign:

Kay Power & Paper Ltd gross margin has been in long-term decline. The average rate of decline per year is -6.1%.


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

BOM:530255' s Gross Margin % Range Over the Past 10 Years
Min: 0.23   Med: 10.41   Max: 16.25
Current: 10.06


During the past 13 years, the highest Gross Margin % of Kay Power & Paper was 16.25%. The lowest was 0.23%. And the median was 10.41%.

BOM:530255's Gross Margin % is ranked worse than
80.85% of 282 companies
in the Forest Products industry
Industry Median: 19.94 vs BOM:530255: 10.06

Kay Power & Paper had a gross margin of 9.25% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Kay Power & Paper was -6.10% per year.


Kay Power & Paper Gross Margin % Historical Data

The historical data trend for Kay Power & Paper'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.

Kay Power & Paper Gross Margin % Chart

Kay Power & Paper 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 13.51 4.61 10.75 10.90 10.06

Kay Power & Paper 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 -0.94 7.52 9.50 13.68 9.25

Competitive Comparison of Kay Power & Paper's Gross Margin %

For the Paper & Paper Products subindustry, Kay Power & Paper'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.


Kay Power & Paper's Gross Margin % Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Kay Power & Paper's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Kay Power & Paper's Gross Margin % falls into.



Kay Power & Paper Gross Margin % Calculation

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

Kay Power & Paper'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 )
=36.3 / 360.771
=(Revenue - Cost of Goods Sold) / Revenue
=(360.771 - 324.471) / 360.771
=10.06 %

Kay Power & Paper'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 )
=10.4 / 112.262
=(Revenue - Cost of Goods Sold) / Revenue
=(112.262 - 101.877) / 112.262
=9.25 %

* 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.


Kay Power & Paper  (BOM:530255) 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

Kay Power & Paper had a gross margin of 9.25% for the quarter that ended in Mar. 2024 => No sustainable 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.


Kay Power & Paper Gross Margin % Related Terms

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Kay Power & Paper (BOM:530255) Business Description

Traded in Other Exchanges
N/A
Address
Gat Number 454/457, Village Borgaon, Satara, MH, IND, 415519
Kay Power & Paper Ltd is engaged in the manufacturing of kraft paper. The company has a single business segment which is the Paper division. The sale of kraft paper generates maximum revenue for the company.

Kay Power & Paper (BOM:530255) Headlines

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