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SPML Infra (BOM:500402) Gross Margin % : 5.48% (As of Dec. 2023)


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What is SPML Infra Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. SPML Infra's Gross Profit for the three months ended in Dec. 2023 was ₹138 Mil. SPML Infra's Revenue for the three months ended in Dec. 2023 was ₹2,522 Mil. Therefore, SPML Infra's Gross Margin % for the quarter that ended in Dec. 2023 was 5.48%.

Warning Sign:

SPML Infra Ltd gross margin has been in long-term decline. The average rate of decline per year is -13.1%.


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

BOM:500402' s Gross Margin % Range Over the Past 10 Years
Min: 5.99   Med: 15.02   Max: 19.91
Current: 5.99


During the past 13 years, the highest Gross Margin % of SPML Infra was 19.91%. The lowest was 5.99%. And the median was 15.02%.

BOM:500402's Gross Margin % is ranked worse than
87.1% of 1612 companies
in the Construction industry
Industry Median: 19.255 vs BOM:500402: 5.99

SPML Infra had a gross margin of 5.48% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for SPML Infra was -13.10% per year.


SPML Infra Gross Margin % Historical Data

The historical data trend for SPML Infra'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.

SPML Infra Gross Margin % Chart

SPML Infra Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.32 12.27 15.71 7.59 9.90

SPML Infra Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.82 7.84 4.20 5.80 5.48

Competitive Comparison of SPML Infra's Gross Margin %

For the Engineering & Construction subindustry, SPML Infra'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.


SPML Infra's Gross Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, SPML Infra's Gross Margin % distribution charts can be found below:

* The bar in red indicates where SPML Infra's Gross Margin % falls into.



SPML Infra Gross Margin % Calculation

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

SPML Infra'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 )
=845.8 / 8546.168
=(Revenue - Cost of Goods Sold) / Revenue
=(8546.168 - 7700.33) / 8546.168
=9.90 %

SPML Infra's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=138.1 / 2522.361
=(Revenue - Cost of Goods Sold) / Revenue
=(2522.361 - 2384.249) / 2522.361
=5.48 %

* 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.


SPML Infra  (BOM:500402) 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

SPML Infra had a gross margin of 5.48% for the quarter that ended in Dec. 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.


SPML Infra Gross Margin % Related Terms

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SPML Infra (BOM:500402) Business Description

Traded in Other Exchanges
Address
22, Camac Street, Block A, 3rd Floor, Kolkata, WB, IND, 700016
SPML Infra Ltd is an Indian-based infrastructure development company. It is engaged in providing infrastructure solutions for water management, water infrastructure development, wastewater treatment, power generation, transmission and distribution, solid waste management, and other civil infrastructures. The company's operating segment includes Construction, Trading, Hydro Power Generation, Waste Management, and Others. Nearly half of the revenue is generated from the Construction segment followed by the trading segment which includes trading of Steel Products and Coal. Geographically, it operates only in India.

SPML Infra (BOM:500402) Headlines

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