Le Merite Exports (NSE:LEMERITE) Gross Margin % : 7.73% (As of Mar. 2024)

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What is Le Merite Exports Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Le Merite Exports's Gross Profit for the six months ended in Mar. 2024 was ₹177 Mil. Le Merite Exports's Revenue for the six months ended in Mar. 2024 was ₹2,286 Mil. Therefore, Le Merite Exports's Gross Margin % for the quarter that ended in Mar. 2024 was 7.73%.

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

NSE:LEMERITE' s Gross Margin % Range Over the Past 10 Years
Min: -0.85 Med: 5.86 Max: 11.19
Current: -0.85

During the past 6 years, the highest Gross Margin % of Le Merite Exports was 11.19%. The lowest was -0.85%. And the median was 5.86%.

NSE:LEMERITE's Gross Margin % is ranked worse than
95.8% of 1025 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 26.22 vs NSE:LEMERITE: -0.85

Le Merite Exports had a gross margin of 7.73% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Le Merite Exports was 0.00% per year.

Le Merite Exports Gross Margin % Historical Data

The historical data trend for Le Merite Exports'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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Le Merite Exports Gross Margin % Chart

Le Merite Exports Annual Data

Trend

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Gross Margin %

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5.86

8.89

11.19

10.93

7.27

Le Merite Exports Semi-Annual Data
	Mar19	Mar20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24
Gross Margin %	Get a 7-Day Free Trial				5.89	15.80	6.43	6.84	7.73

Competitive Comparison of Le Merite Exports's Gross Margin %

For the Textile Manufacturing subindustry, Le Merite Exports'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.

Le Merite Exports's Gross Margin % Distribution in the Manufacturing - Apparel & Accessories Industry

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

* The bar in red indicates where Le Merite Exports's Gross Margin % falls into.

Le Merite Exports Gross Margin % Calculation

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

Le Merite Exports'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 )
	=	340.5	/	4681.534
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4681.534 - 4341.007)	/	4681.534
	=	7.27 %

Le Merite Exports'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 )
	=	176.7	/	2286.379
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2286.379 - 2109.664)	/	2286.379
	=	7.73 %

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.

Le Merite Exports (NSE:LEMERITE) 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

Le Merite Exports had a gross margin of 7.73% 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.

Le Merite Exports Gross Margin % Related Terms

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Le Merite Exports (NSE:LEMERITE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Le Merite Exports Ltd (NSE:LEMERITE) » Definitions » Gross Margin %

Traded in Other Exchanges

N/A

Address

1 st Floor, Chandivali Farm Road, B1-104D, Boomerang, Powai, Andheri- East, Mumbai, MH, IND, 400072

Website

https://www.lemeriteexports.com

Le Merite Exports Ltd is engaged in the manufacturing and trading of textile products namely cotton yarn, greige fabric, and finished fabric for domestic and export sales. The reportable segment for the Company is Textile Business.

Le Merite Exports (NSE:LEMERITE) Headlines

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