Vital Chemtech (NSE:VITAL) Gross Margin % : 17.04% (As of Sep. 2023)

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What is Vital Chemtech Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Vital Chemtech's Gross Profit for the six months ended in Sep. 2023 was ₹85 Mil. Vital Chemtech's Revenue for the six months ended in Sep. 2023 was ₹498 Mil. Therefore, Vital Chemtech's Gross Margin % for the quarter that ended in Sep. 2023 was 17.04%.

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

NSE:VITAL' s Gross Margin % Range Over the Past 10 Years
Min: 15.83 Med: 26.8 Max: 29.09
Current: 15.83

During the past 4 years, the highest Gross Margin % of Vital Chemtech was 29.09%. The lowest was 15.83%. And the median was 26.80%.

NSE:VITAL's Gross Margin % is ranked worse than
68.37% of 1508 companies
in the Chemicals industry
Industry Median: 22.245 vs NSE:VITAL: 15.83

Vital Chemtech had a gross margin of 17.04% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Vital Chemtech was 0.00% per year.

Vital Chemtech Gross Margin % Historical Data

The historical data trend for Vital Chemtech'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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Vital Chemtech Gross Margin % Chart

Vital Chemtech Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

Gross Margin %

27.21

29.09

26.38

23.81

Vital Chemtech Semi-Annual Data
	Mar20	Mar21	Mar22	Sep22	Mar23	Sep23
Gross Margin %	Get a 7-Day Free Trial			-	-	32.19	14.76	17.04

Competitive Comparison of Vital Chemtech's Gross Margin %

For the Specialty Chemicals subindustry, Vital Chemtech'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.

Vital Chemtech's Gross Margin % Distribution in the Chemicals Industry

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

* The bar in red indicates where Vital Chemtech's Gross Margin % falls into.

Vital Chemtech Gross Margin % Calculation

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

Vital Chemtech'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 )
	=	277.9	/	1167.433
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1167.433 - 889.51)	/	1167.433
	=	23.81 %

Vital Chemtech'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 )
	=	84.8	/	497.684
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(497.684 - 412.9)	/	497.684
	=	17.04 %

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.

Vital Chemtech (NSE:VITAL) 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

Vital Chemtech had a gross margin of 17.04% 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.

Vital Chemtech Gross Margin % Related Terms

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Vital Chemtech (NSE:VITAL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Vital Chemtech Ltd (NSE:VITAL) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

S. G. Highway, Opposite Karnavati Club, B-406, Mondeal Heights, Ahmedabad, GJ, IND, 380015

Website

https://www.vitalgroup.co.in

Vital Chemtech Ltd is engaged in the business of manufacturing, producing, refining, processing, formulating, mixing, enriching, mining, importing, exporting, acquiring, inventing, buying, selling, exchanging, distributing, and otherwise trading and dealing in all kinds of mixtures, formlations, intermediates, derivatives, compounds, phosphorous based chemicals, fine chemicals, heavy chemicals, valence, inorganic and organic chemicals, source materials, intermediates, ingredients, mixtures, derivatives and compounds. The company's Products include Phosphorus Derivatives, Industrial Chemicals, Specialty Chemicals & Intermediates, Organophosphates, Polymers & Dispersants, and Wellness Products.

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