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Lahoti Overseas (BOM:531842) Gross Margin % : 2.58% (As of Mar. 2024)


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What is Lahoti Overseas Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Lahoti Overseas's Gross Profit for the three months ended in Mar. 2024 was ₹25 Mil. Lahoti Overseas's Revenue for the three months ended in Mar. 2024 was ₹964 Mil. Therefore, Lahoti Overseas's Gross Margin % for the quarter that ended in Mar. 2024 was 2.58%.

Warning Sign:

Lahoti Overseas Ltd gross margin has been in long-term decline. The average rate of decline per year is -20.4%.


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

BOM:531842' s Gross Margin % Range Over the Past 10 Years
Min: 2.12   Med: 7.69   Max: 9.98
Current: 2.12


During the past 13 years, the highest Gross Margin % of Lahoti Overseas was 9.98%. The lowest was 2.12%. And the median was 7.69%.

BOM:531842's Gross Margin % is ranked worse than
94.07% of 1029 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 26.22 vs BOM:531842: 2.12

Lahoti Overseas had a gross margin of 2.58% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Lahoti Overseas was -20.40% per year.


Lahoti Overseas Gross Margin % Historical Data

The historical data trend for Lahoti Overseas'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.

Lahoti Overseas Gross Margin % Chart

Lahoti Overseas 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 8.11 9.25 9.98 6.27 2.12

Lahoti Overseas 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 1.76 2.57 1.55 1.92 2.58

Competitive Comparison of Lahoti Overseas's Gross Margin %

For the Textile Manufacturing subindustry, Lahoti Overseas'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.


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

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

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



Lahoti Overseas Gross Margin % Calculation

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

Lahoti Overseas'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 )
=97 / 4583.247
=(Revenue - Cost of Goods Sold) / Revenue
=(4583.247 - 4486.2) / 4583.247
=2.12 %

Lahoti Overseas'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 )
=24.9 / 964.396
=(Revenue - Cost of Goods Sold) / Revenue
=(964.396 - 939.519) / 964.396
=2.58 %

* 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.


Lahoti Overseas  (BOM:531842) 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

Lahoti Overseas had a gross margin of 2.58% 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.


Lahoti Overseas Gross Margin % Related Terms

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


Lahoti Overseas (BOM:531842) Business Description

Traded in Other Exchanges
N/A
Address
Tardeo Road, 307, Arun Chambers, Mumbai, MH, IND, 400034
Lahoti Overseas Ltd is engaged in the business of merchant exports of cotton textiles and specializes in the export of quality cotton yarns and fabrics. It is also engaged in the business of setting up of power projects and to generate, supply, distribute, transmit and transform electric or other sources of power. Its products include carded and combed ring spun yarns, ply yarns, special yarns. The segments of the company include Trading and Power.

Lahoti Overseas (BOM:531842) Headlines

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