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Narmada Gelatines (BOM:526739) Gross Margin % : 39.27% (As of Dec. 2023)


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What is Narmada Gelatines Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Narmada Gelatines's Gross Profit for the three months ended in Dec. 2023 was ₹185 Mil. Narmada Gelatines's Revenue for the three months ended in Dec. 2023 was ₹471 Mil. Therefore, Narmada Gelatines's Gross Margin % for the quarter that ended in Dec. 2023 was 39.27%.


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

BOM:526739' s Gross Margin % Range Over the Past 10 Years
Min: 32.82   Med: 39.13   Max: 51.3
Current: 41.78


During the past 13 years, the highest Gross Margin % of Narmada Gelatines was 51.30%. The lowest was 32.82%. And the median was 39.13%.

BOM:526739's Gross Margin % is ranked better than
85.93% of 1507 companies
in the Chemicals industry
Industry Median: 22.25 vs BOM:526739: 41.78

Narmada Gelatines had a gross margin of 39.27% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Narmada Gelatines was 0.10% per year.


Narmada Gelatines Gross Margin % Historical Data

The historical data trend for Narmada Gelatines'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.

Narmada Gelatines Gross Margin % Chart

Narmada Gelatines 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 41.03 42.68 32.82 36.71 40.35

Narmada Gelatines 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 41.93 39.25 45.53 43.69 39.27

Competitive Comparison of Narmada Gelatines's Gross Margin %

For the Specialty Chemicals subindustry, Narmada Gelatines'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.


Narmada Gelatines's Gross Margin % Distribution in the Chemicals Industry

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

* The bar in red indicates where Narmada Gelatines's Gross Margin % falls into.



Narmada Gelatines Gross Margin % Calculation

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

Narmada Gelatines'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 )
=770.6 / 1909.789
=(Revenue - Cost of Goods Sold) / Revenue
=(1909.789 - 1139.211) / 1909.789
=40.35 %

Narmada Gelatines'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 )
=184.9 / 470.8
=(Revenue - Cost of Goods Sold) / Revenue
=(470.8 - 285.9) / 470.8
=39.27 %

* 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.


Narmada Gelatines  (BOM:526739) 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

Narmada Gelatines had a gross margin of 39.27% for the quarter that ended in Dec. 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.


Narmada Gelatines Gross Margin % Related Terms

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Narmada Gelatines (BOM:526739) Business Description

Traded in Other Exchanges
N/A
Address
15 Civil Lines, Caravs Building, 1st Floor, Room No 28, Jabalpur, MP, IND, 482001
Narmada Gelatines Ltd is a gelatin manufacturing company. The company is engaged in the business of manufacturing and sale of gelatine and its by-product di-calcium phosphate (DCP) for industrial applications. Gelatine, ossein and the by-product DCP together form part of one product group, which is the operating segment of the company. The group operates in India, and also exports internationally, of which sales from India constitute majorly to the revenue. The company generates its key revenue from the sale of gelatin.

Narmada Gelatines (BOM:526739) Headlines

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