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The Phosphate Co (BOM:542123) Gross Margin % : 28.16% (As of Dec. 2023)


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What is The Phosphate Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. The Phosphate Co's Gross Profit for the three months ended in Dec. 2023 was ₹119 Mil. The Phosphate Co's Revenue for the three months ended in Dec. 2023 was ₹423 Mil. Therefore, The Phosphate Co's Gross Margin % for the quarter that ended in Dec. 2023 was 28.16%.

Warning Sign:

The Phosphate Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -6.9%.


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

BOM:542123' s Gross Margin % Range Over the Past 10 Years
Min: 25.98   Med: 35.6   Max: 43.51
Current: 28.53


During the past 12 years, the highest Gross Margin % of The Phosphate Co was 43.51%. The lowest was 25.98%. And the median was 35.60%.

BOM:542123's Gross Margin % is ranked better than
56.6% of 235 companies
in the Agriculture industry
Industry Median: 24.52 vs BOM:542123: 28.53

The Phosphate Co had a gross margin of 28.16% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for The Phosphate Co was -6.90% per year.


The Phosphate Co Gross Margin % Historical Data

The historical data trend for The Phosphate Co'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.

The Phosphate Co Gross Margin % Chart

The Phosphate Co 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 37.27 41.03 43.51 27.71 25.98

The Phosphate Co 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 36.57 25.90 36.39 29.30 28.16

Competitive Comparison of The Phosphate Co's Gross Margin %

For the Agricultural Inputs subindustry, The Phosphate Co'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.


The Phosphate Co's Gross Margin % Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, The Phosphate Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where The Phosphate Co's Gross Margin % falls into.



The Phosphate Co Gross Margin % Calculation

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

The Phosphate Co'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 )
=380.8 / 1465.662
=(Revenue - Cost of Goods Sold) / Revenue
=(1465.662 - 1084.868) / 1465.662
=25.98 %

The Phosphate Co'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 )
=119 / 422.709
=(Revenue - Cost of Goods Sold) / Revenue
=(422.709 - 303.692) / 422.709
=28.16 %

* 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.


The Phosphate Co  (BOM:542123) 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

The Phosphate Co had a gross margin of 28.16% 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.


The Phosphate Co Gross Margin % Related Terms

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


The Phosphate Co (BOM:542123) Business Description

Traded in Other Exchanges
N/A
Address
14, Netaji Subhas Road, 3rd Floor, Kolkata, WB, IND, 700001
The Phosphate Co Ltd is engaged in the business of farm inputs comprising of fertilizer, crop protection, specialty nutrients, and organic compost. Its product Single Super Phosphate contains sulphur, calcium besides phosphorous which makes it a multi-nutrient fertilizer. The company is also engaged in the trading of acid. Its manufacturing unit is located at Rishra, West Bengal.

The Phosphate Co (BOM:542123) Headlines

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