Ushanti Colour Chem (NSE:UCL) Gross Margin % : 39.35% (As of Sep. 2023)

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What is Ushanti Colour Chem Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Ushanti Colour Chem's Gross Profit for the six months ended in Sep. 2023 was ₹81.6 Mil. Ushanti Colour Chem's Revenue for the six months ended in Sep. 2023 was ₹207.3 Mil. Therefore, Ushanti Colour Chem's Gross Margin % for the quarter that ended in Sep. 2023 was 39.35%.

Warning Sign:

Ushanti Colour Chem Ltd gross margin has been in long-term decline. The average rate of decline per year is -5.8%.

The historical rank and industry rank for Ushanti Colour Chem's Gross Margin % or its related term are showing as below:

NSE:UCL' s Gross Margin % Range Over the Past 10 Years
Min: 32.47 Med: 44.26 Max: 50.02
Current: 36.59

During the past 11 years, the highest Gross Margin % of Ushanti Colour Chem was 50.02%. The lowest was 32.47%. And the median was 44.26%.

NSE:UCL's Gross Margin % is ranked better than
78.95% of 1511 companies
in the Chemicals industry
Industry Median: 22.24 vs NSE:UCL: 36.59

Ushanti Colour Chem had a gross margin of 39.35% for the quarter that ended in Sep. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Ushanti Colour Chem was -5.80% per year.

Ushanti Colour Chem Gross Margin % Historical Data

The historical data trend for Ushanti Colour Chem'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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Ushanti Colour Chem Gross Margin % Chart

Ushanti Colour Chem Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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44.29

44.23

48.45

39.12

32.47

Ushanti Colour Chem Semi-Annual Data
	Mar13	Mar14	Mar15	Mar16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Gross Margin %	Get a 7-Day Free Trial													42.45	36.46	32.05	33.16	39.35

Competitive Comparison of Ushanti Colour Chem's Gross Margin %

For the Specialty Chemicals subindustry, Ushanti Colour Chem'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.

Ushanti Colour Chem's Gross Margin % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Ushanti Colour Chem's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Ushanti Colour Chem's Gross Margin % falls into.

Ushanti Colour Chem Gross Margin % Calculation

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

Ushanti Colour Chem'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 )
	=	141.9	/	437.079
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(437.079 - 295.157)	/	437.079
	=	32.47 %

Ushanti Colour Chem'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 )
	=	81.6	/	207.334
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(207.334 - 125.752)	/	207.334
	=	39.35 %

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.

Ushanti Colour Chem (NSE:UCL) 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

Ushanti Colour Chem had a gross margin of 39.35% 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.

Ushanti Colour Chem Gross Margin % Related Terms

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Ushanti Colour Chem (NSE:UCL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Ushanti Colour Chem Ltd (NSE:UCL) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

88/8, Phase - 1, GIDC, Vatva, Ahmedabad, GJ, IND, 382445

Website

http://www.ushanti.com

Ushanti Colour Chem Ltd is engaged in the business of manufacturing and trading of dyestuffs. It manufactures reactive and direct dyestuffs. It also manufactures copper phthalocyamine, blue crude used for manufacturing dyestuffs. The company caters to textile, garment, cotton, leather, nylon, paper, wool, ink, wood, plastic and paint industries.