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GVK Power & Infrastructure (BOM:532708) Gross Margin % : 54.24% (As of Dec. 2023)


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What is GVK Power & Infrastructure Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. GVK Power & Infrastructure's Gross Profit for the three months ended in Dec. 2023 was ₹730 Mil. GVK Power & Infrastructure's Revenue for the three months ended in Dec. 2023 was ₹1,346 Mil. Therefore, GVK Power & Infrastructure's Gross Margin % for the quarter that ended in Dec. 2023 was 54.24%.


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

BOM:532708' s Gross Margin % Range Over the Past 10 Years
Min: 34.81   Med: 49.17   Max: 90.95
Current: 74.16


During the past 13 years, the highest Gross Margin % of GVK Power & Infrastructure was 90.95%. The lowest was 34.81%. And the median was 49.17%.

BOM:532708's Gross Margin % is ranked better than
82.83% of 396 companies
in the Utilities - Independent Power Producers industry
Industry Median: 35.46 vs BOM:532708: 74.16

GVK Power & Infrastructure had a gross margin of 54.24% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for GVK Power & Infrastructure was 7.80% per year.


GVK Power & Infrastructure Gross Margin % Historical Data

The historical data trend for GVK Power & Infrastructure'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.

GVK Power & Infrastructure Gross Margin % Chart

GVK Power & Infrastructure 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 40.55 77.97 79.25 61.99 54.10

GVK Power & Infrastructure 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 60.98 33.42 87.56 83.56 54.24

Competitive Comparison of GVK Power & Infrastructure's Gross Margin %

For the Utilities - Independent Power Producers subindustry, GVK Power & Infrastructure'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.


GVK Power & Infrastructure's Gross Margin % Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, GVK Power & Infrastructure's Gross Margin % distribution charts can be found below:

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



GVK Power & Infrastructure Gross Margin % Calculation

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

GVK Power & Infrastructure'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 )
=11472.1 / 21203.6
=(Revenue - Cost of Goods Sold) / Revenue
=(21203.6 - 9731.5) / 21203.6
=54.10 %

GVK Power & Infrastructure'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 )
=730.3 / 1346.4
=(Revenue - Cost of Goods Sold) / Revenue
=(1346.4 - 616.1) / 1346.4
=54.24 %

* 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.


GVK Power & Infrastructure  (BOM:532708) 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

GVK Power & Infrastructure had a gross margin of 54.24% 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.


GVK Power & Infrastructure Gross Margin % Related Terms

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GVK Power & Infrastructure (BOM:532708) Business Description

Traded in Other Exchanges
Address
Street No: 1, Penderghast Road, Darshak Chambers, House No. 1-8-303/48/32, Plot No.32, Ground Floor, Secunderabad, TG, IND, 500 003
GVK Power & Infrastructure Ltd is an India-based company engaged in the business of providing operation and maintenance services, manpower, consultancy services, and incidental services to owners of power plants. It is also engaged in constructing and operating power plants, highway projects, airports, exploration of oil and coal mines. It operates its business through three business segments. The Power segment is a key revenue driver, engaged in the construction and operation of power plants; Roads segment is engaged in the construction and operation of highway projects and Others segment is engaged in investment in SEZ and other investments.

GVK Power & Infrastructure (BOM:532708) Headlines

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