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Rex Pipes and Cables Industries (NSE:REXPIPES) Gross Margin % : 17.79% (As of Sep. 2023)


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What is Rex Pipes and Cables Industries Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Rex Pipes and Cables Industries's Gross Profit for the six months ended in Sep. 2023 was ₹102 Mil. Rex Pipes and Cables Industries's Revenue for the six months ended in Sep. 2023 was ₹575 Mil. Therefore, Rex Pipes and Cables Industries's Gross Margin % for the quarter that ended in Sep. 2023 was 17.79%.

Warning Sign:

Rex Pipes and Cables Industries Ltd gross margin has been in long-term decline. The average rate of decline per year is -9.8%.


The historical rank and industry rank for Rex Pipes and Cables Industries's Gross Margin % or its related term are showing as below:

NSE:REXPIPES' s Gross Margin % Range Over the Past 10 Years
Min: 8.5   Med: 12.55   Max: 20.15
Current: 12.31


During the past 6 years, the highest Gross Margin % of Rex Pipes and Cables Industries was 20.15%. The lowest was 8.50%. And the median was 12.55%.

NSE:REXPIPES's Gross Margin % is ranked worse than
77.75% of 1510 companies
in the Chemicals industry
Industry Median: 22.355 vs NSE:REXPIPES: 12.31

Rex Pipes and Cables Industries had a gross margin of 17.79% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Rex Pipes and Cables Industries was -9.80% per year.


Rex Pipes and Cables Industries Gross Margin % Historical Data

The historical data trend for Rex Pipes and Cables Industries'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.

Rex Pipes and Cables Industries Gross Margin % Chart

Rex Pipes and Cables Industries Annual Data
Trend Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial 16.03 20.15 11.65 8.50 10.68

Rex Pipes and Cables Industries Semi-Annual Data
Mar18 Mar19 Mar20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
Gross Margin % Get a 7-Day Free Trial Premium Member Only 10.74 6.26 14.71 7.55 17.79

Competitive Comparison of Rex Pipes and Cables Industries's Gross Margin %

For the Specialty Chemicals subindustry, Rex Pipes and Cables Industries'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.


Rex Pipes and Cables Industries's Gross Margin % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Rex Pipes and Cables Industries's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Rex Pipes and Cables Industries's Gross Margin % falls into.



Rex Pipes and Cables Industries Gross Margin % Calculation

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

Rex Pipes and Cables Industries'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 )
=125.6 / 1176.142
=(Revenue - Cost of Goods Sold) / Revenue
=(1176.142 - 1050.499) / 1176.142
=10.68 %

Rex Pipes and Cables Industries'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 )
=102.3 / 575.216
=(Revenue - Cost of Goods Sold) / Revenue
=(575.216 - 472.89) / 575.216
=17.79 %

* 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.


Rex Pipes and Cables Industries  (NSE:REXPIPES) 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

Rex Pipes and Cables Industries had a gross margin of 17.79% 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.


Rex Pipes and Cables Industries Gross Margin % Related Terms

Thank you for viewing the detailed overview of Rex Pipes and Cables Industries's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Rex Pipes and Cables Industries (NSE:REXPIPES) Business Description

Traded in Other Exchanges
N/A
Address
F-69A, RIICO Industrial Area, Sikar, RJ, IND, 332 001
Rex Pipes and Cables Industries Ltd is engaged in the trading and manufacturing of PVC pipes, HDPE pipes, cables, and fittings under the Rex brand name. It offers a wide range of products including three-core flat cables, PVC & HDPE pipes, single-core flexible home wire, HDPE and sprinklers, and cables that are used by different industries such as agriculture, power, construction, and engineering.

Rex Pipes and Cables Industries (NSE:REXPIPES) Headlines

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