Hindprakash Industries�Ltd (NSE:HPIL) Gross Margin % : 6.35% (As of Sep. 2023)

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What is Hindprakash Industries�Ltd Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Hindprakash Industries�Ltd's Gross Profit for the six months ended in Sep. 2023 was ₹37 Mil. Hindprakash Industries�Ltd's Revenue for the six months ended in Sep. 2023 was ₹575 Mil. Therefore, Hindprakash Industries�Ltd's Gross Margin % for the quarter that ended in Sep. 2023 was 6.35%.

The historical rank and industry rank for Hindprakash Industries�Ltd's Gross Margin % or its related term are showing as below:

NSE:HPIL' s Gross Margin % Range Over the Past 10 Years
Min: 5.92 Med: 8.26 Max: 10.91
Current: 7.12

During the past 7 years, the highest Gross Margin % of Hindprakash Industries�Ltd was 10.91%. The lowest was 5.92%. And the median was 8.26%.

NSE:HPIL's Gross Margin % is ranked worse than
87.76% of 1511 companies
in the Chemicals industry
Industry Median: 22.24 vs NSE:HPIL: 7.12

Hindprakash Industries�Ltd had a gross margin of 6.35% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Hindprakash Industries�Ltd was -7.90% per year.

Hindprakash Industries�Ltd Gross Margin % Historical Data

The historical data trend for Hindprakash Industries�Ltd'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.

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Hindprakash Industries�Ltd Gross Margin % Chart

Hindprakash Industries�Ltd Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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8.26

8.38

5.92

6.69

6.42

Hindprakash Industries�Ltd Semi-Annual Data
	Mar17	Mar18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Gross Margin %	Get a 7-Day Free Trial							5.56	7.90	4.33	7.88	6.35

Competitive Comparison of Hindprakash Industries�Ltd's Gross Margin %

For the Specialty Chemicals subindustry, Hindprakash Industries�Ltd'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.

Hindprakash Industries�Ltd's Gross Margin % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Hindprakash Industries�Ltd's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Hindprakash Industries�Ltd's Gross Margin % falls into.

Hindprakash Industries�Ltd Gross Margin % Calculation

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

Hindprakash Industries�Ltd'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 )
	=	64.7	/	1007.854
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1007.854 - 943.171)	/	1007.854
	=	6.42 %

Hindprakash Industries�Ltd'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 )
	=	36.5	/	575.315
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(575.315 - 538.799)	/	575.315
	=	6.35 %

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.

Hindprakash Industries�Ltd (NSE:HPIL) 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

Hindprakash Industries�Ltd had a gross margin of 6.35% for the quarter that ended in Sep. 2023 => 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.

Hindprakash Industries�Ltd Gross Margin % Related Terms

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Hindprakash Industries�Ltd (NSE:HPIL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Hindprakash Industries�Ltd (NSE:HPIL) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

543645:India

Address

301 Hindprakash House Plot No. 10/6, Phase-I, GIDC, Vatva, Ahmedabad, GJ, IND, 382 445

Website

https://www.hindprakash.in

Hindprakash Industries Ltd is an Indian company engaged in manufacturing, dealing, and trading of dyes, intermediates, auxiliary, chemicals, and other merchandise. The company's products include Dyestuff, Dyes intermediates, Textile chemicals and aux, and Water treatments. It earns revenues from the manufacturing of dyes.