Tulsyan NEC (BOM:513629) Gross Margin % : 8.11% (As of Dec. 2023)

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What is Tulsyan NEC Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Tulsyan NEC's Gross Profit for the three months ended in Dec. 2023 was ₹205 Mil. Tulsyan NEC's Revenue for the three months ended in Dec. 2023 was ₹2,527 Mil. Therefore, Tulsyan NEC's Gross Margin % for the quarter that ended in Dec. 2023 was 8.11%.

Warning Sign:

Tulsyan NEC Ltd gross margin has been in long-term decline. The average rate of decline per year is -9.3%.

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

BOM:513629' s Gross Margin % Range Over the Past 10 Years
Min: 9.12 Med: 16.45 Max: 19.46
Current: 9.12

During the past 13 years, the highest Gross Margin % of Tulsyan NEC was 19.46%. The lowest was 9.12%. And the median was 16.45%.

BOM:513629's Gross Margin % is ranked worse than
63.18% of 584 companies
in the Steel industry
Industry Median: 12.845 vs BOM:513629: 9.12

Tulsyan NEC had a gross margin of 8.11% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Tulsyan NEC was -9.30% per year.

Tulsyan NEC Gross Margin % Historical Data

The historical data trend for Tulsyan NEC'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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Tulsyan NEC Gross Margin % Chart

Tulsyan NEC Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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17.79

16.57

17.98

11.52

10.50

Tulsyan NEC 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															8.08	12.69	8.60	7.29	8.11

Competitive Comparison of Tulsyan NEC's Gross Margin %

For the Steel subindustry, Tulsyan NEC'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.

Tulsyan NEC's Gross Margin % Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Tulsyan NEC's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Tulsyan NEC's Gross Margin % falls into.

Tulsyan NEC Gross Margin % Calculation

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

Tulsyan NEC'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 )
	=	1072.8	/	10216.821
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(10216.821 - 9144.069)	/	10216.821
	=	10.50 %

Tulsyan NEC'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 )
	=	205	/	2527.377
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2527.377 - 2322.342)	/	2527.377
	=	8.11 %

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.

Tulsyan NEC (BOM:513629) 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

Tulsyan NEC had a gross margin of 8.11% 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.

Tulsyan NEC Gross Margin % Related Terms

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Tulsyan NEC (BOM:513629) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Tulsyan NEC Ltd (BOM:513629) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Miller Tank Bund Road, No. 37, Kaveriappa Layout, Vasanth Nagar, Bangalore, KA, IND, 560 052

Website

http://www.tulsyannec.in

Tulsyan NEC Ltd is a manufacturer of Thermo Mechanically Treated (TMT) Bars in India. Its reportable segments are Steel, Synthetic, and Power. The company generates maximum revenue from the Steel segment. Its products include TMT Bars, sponge, billets, and ingots in the steel division, and in the synthetic division, it includes PP Woven Sacks, FIBC, and Woven Fabric. Geographically, it derives a majority of revenue from India.

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