The historical rank and industry rank for Tata Power Co's Gross Margin % or its related term are showing as below:
NSE:TATAPOWER'
s Gross Margin % Range Over the Past 10 Years
Min: 28.42 Med: 31.41 Max: 34.58
Current: 33.7
During the past 13 years, the highestGross Margin % of Tata Power Co was 34.58%. The lowest was 28.42%. And the median was 31.41%.
NSE:TATAPOWER's Gross Margin % is ranked worse than 52.64% of 397
companies
in the Utilities - Independent Power Producers industry
Industry Median: 35.58
vs NSE:TATAPOWER: 33.70
Tata Power Co had a gross margin of 33.84% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Tata Power Co was 0.80% per year.
Tata Power Co Gross Margin % Historical Data
The historical data trend for Tata Power 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.
Competitive Comparison of Tata Power Co's Gross Margin %
For the Utilities - Independent Power Producers subindustry, Tata Power 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.
Tata Power Co's Gross Margin % Distribution in the Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Tata Power Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tata Power Co's Gross Margin % falls into.
* 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.
Tata Power Co (NSE:TATAPOWER) 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
Tata Power Co had a gross margin of 33.84% for the quarter that ended in Mar. 2024 => 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.
Tata Power Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Tata Power Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Tata Power Co (NSE:TATAPOWER) Business Description
Tata Power Co Ltd is an Indian electric utility company within the Tata Group multinational conglomerate that builds, operates, and maintains power generation and distribution facilities. With the help of its seven key subsidiaries and numerous joint-venture companies, Tata Power generates Most of its revenue through the generation, transmission, distribution, and trading of electricity throughout India. Most of this energy is produced from thermal fuel sources, such as coal, oil, and gas. Additionally, Tata Power engages in the production of energy from hydroelectric and renewable sources, including multiple hydroelectric and wind power projects located throughout Africa. Its segment comprises Generation; Renewables; Transmission and Distribution; and Others.
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