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Godrej Consumer Products (BOM:532424) Gross Margin % : 55.44% (As of Dec. 2023)


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What is Godrej Consumer Products Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Godrej Consumer Products's Gross Profit for the three months ended in Dec. 2023 was ₹20,085 Mil. Godrej Consumer Products's Revenue for the three months ended in Dec. 2023 was ₹36,228 Mil. Therefore, Godrej Consumer Products's Gross Margin % for the quarter that ended in Dec. 2023 was 55.44%.

Warning Sign:

Godrej Consumer Products Ltd gross margin has been in long-term decline. The average rate of decline per year is -3%.


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

BOM:532424' s Gross Margin % Range Over the Past 10 Years
Min: 47.1   Med: 52.2   Max: 54.15
Current: 51.92


During the past 13 years, the highest Gross Margin % of Godrej Consumer Products was 54.15%. The lowest was 47.10%. And the median was 52.20%.

BOM:532424's Gross Margin % is ranked better than
86.89% of 1808 companies
in the Consumer Packaged Goods industry
Industry Median: 25.085 vs BOM:532424: 51.92

Godrej Consumer Products had a gross margin of 55.44% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Godrej Consumer Products was -3.00% per year.


Godrej Consumer Products Gross Margin % Historical Data

The historical data trend for Godrej Consumer Products'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.

Godrej Consumer Products Gross Margin % Chart

Godrej Consumer Products 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 53.35 54.01 52.44 47.77 47.10

Godrej Consumer Products 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 50.72 43.81 53.32 54.46 55.44

Competitive Comparison of Godrej Consumer Products's Gross Margin %

For the Household & Personal Products subindustry, Godrej Consumer Products'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.


Godrej Consumer Products's Gross Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Godrej Consumer Products's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Godrej Consumer Products's Gross Margin % falls into.



Godrej Consumer Products Gross Margin % Calculation

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

Godrej Consumer Products'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 )
=62720.3 / 133159.7
=(Revenue - Cost of Goods Sold) / Revenue
=(133159.7 - 70439.4) / 133159.7
=47.10 %

Godrej Consumer Products'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 )
=20085.4 / 36228
=(Revenue - Cost of Goods Sold) / Revenue
=(36228 - 16142.6) / 36228
=55.44 %

* 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.


Godrej Consumer Products  (BOM:532424) 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

Godrej Consumer Products had a gross margin of 55.44% for the quarter that ended in Dec. 2023 => Durable 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.


Godrej Consumer Products Gross Margin % Related Terms

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Godrej Consumer Products (BOM:532424) Business Description

Traded in Other Exchanges
Address
Eastern Express Highway, 4th Floor, Godrej One, Pirojshanagar, Vikhroli (East), Mumbai, MH, IND, 400079
Godrej Consumer Products Ltd is a household and personal care producer. The company has three main product categories: home care, hair care, and personal care. Godrej Consumer Products serves different geographic regions: Asia (India, Indonesia, Middle East, Myanmar, Nepal, Pakistan, Sri Lanka); Africa (South Africa, Nigeria, Mozambique, Kenya); Latin America (Argentina, Bolivia, Chile, Paraguay, and Uruguay); and Europe (the United Kingdom). The brand portfolio includes Roby, Renew, Darling, and Inecto in hair care; Hit, Ezee, and Good Knight in-home care; and Mitu, Protekt, and Cinthol in personal care.

Godrej Consumer Products (BOM:532424) Headlines

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