AB Cotspin India (NSE:ABCOTS) Gross Margin % : 24.32% (As of Sep. 2023)

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What is AB Cotspin India Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. AB Cotspin India's Gross Profit for the six months ended in Sep. 2023 was ₹270 Mil. AB Cotspin India's Revenue for the six months ended in Sep. 2023 was ₹1,110 Mil. Therefore, AB Cotspin India's Gross Margin % for the quarter that ended in Sep. 2023 was 24.32%.

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

NSE:ABCOTS' s Gross Margin % Range Over the Past 10 Years
Min: 11.23 Med: 12.71 Max: 16.41
Current: 16.2

During the past 5 years, the highest Gross Margin % of AB Cotspin India was 16.41%. The lowest was 11.23%. And the median was 12.71%.

NSE:ABCOTS's Gross Margin % is ranked worse than
69.87% of 1029 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 25.71 vs NSE:ABCOTS: 16.20

AB Cotspin India had a gross margin of 24.32% for the quarter that ended in Sep. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for AB Cotspin India was 0.00% per year.

AB Cotspin India Gross Margin % Historical Data

The historical data trend for AB Cotspin India'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.

AB Cotspin India Gross Margin % Chart

AB Cotspin India Annual Data

Trend

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

11.81

12.71

14.91

16.41

11.23

AB Cotspin India Semi-Annual Data
	Mar19	Mar20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Gross Margin %	Get a 7-Day Free Trial			25.02	-24.14	17.13	6.87	24.32

Competitive Comparison of AB Cotspin India's Gross Margin %

For the Textile Manufacturing subindustry, AB Cotspin India'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.

AB Cotspin India's Gross Margin % Distribution in the Manufacturing - Apparel & Accessories Industry

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

* The bar in red indicates where AB Cotspin India's Gross Margin % falls into.

AB Cotspin India Gross Margin % Calculation

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

AB Cotspin India'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 )
	=	188.8	/	1681.125
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1681.125 - 1492.335)	/	1681.125
	=	11.23 %

AB Cotspin India's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	270	/	1110.153
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1110.153 - 840.162)	/	1110.153
	=	24.32 %

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.

AB Cotspin India (NSE:ABCOTS) 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

AB Cotspin India had a gross margin of 24.32% for the quarter that ended in Sep. 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.

AB Cotspin India Gross Margin % Related Terms

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AB Cotspin India (NSE:ABCOTS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » AB Cotspin India Ltd (NSE:ABCOTS) » Definitions » Gross Margin %

Traded in Other Exchanges

N/A

Address

Goniana Road, NH-54, Near lake-3, Bathinda, PB, IND, 151001

Website

https://www.abcotspin.com

AB Cotspin India Ltd has one segment of activity namely Cotton Ginning. Revenue is generated from the sale of products. The company is engaged in manufacturing cotton yarns & fabrics both combed and karded, knitted fabric, cottonseed oil and oilcake catering to the requirements of niche customers who in turn are engaged in making garments for their international buyers.

AB Cotspin India (NSE:ABCOTS) Headlines

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