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Mangalam Drugs & Organics (BOM:532637) Gross Margin % : 28.63% (As of Dec. 2023)


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What is Mangalam Drugs & Organics Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Mangalam Drugs & Organics's Gross Profit for the three months ended in Dec. 2023 was ₹278 Mil. Mangalam Drugs & Organics's Revenue for the three months ended in Dec. 2023 was ₹970 Mil. Therefore, Mangalam Drugs & Organics's Gross Margin % for the quarter that ended in Dec. 2023 was 28.63%.

Warning Sign:

Mangalam Drugs & Organics Ltd gross margin has been in long-term decline. The average rate of decline per year is -6%.


The historical rank and industry rank for Mangalam Drugs & Organics's Gross Margin % or its related term are showing as below:

BOM:532637' s Gross Margin % Range Over the Past 10 Years
Min: 18.51   Med: 22.11   Max: 31.04
Current: 23.71


During the past 13 years, the highest Gross Margin % of Mangalam Drugs & Organics was 31.04%. The lowest was 18.51%. And the median was 22.11%.

BOM:532637's Gross Margin % is ranked worse than
84.3% of 987 companies
in the Drug Manufacturers industry
Industry Median: 46.24 vs BOM:532637: 23.71

Mangalam Drugs & Organics had a gross margin of 28.63% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Mangalam Drugs & Organics was -6.00% per year.


Mangalam Drugs & Organics Gross Margin % Historical Data

The historical data trend for Mangalam Drugs & Organics'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.

Mangalam Drugs & Organics Gross Margin % Chart

Mangalam Drugs & Organics 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 21.23 22.36 25.72 22.07 19.17

Mangalam Drugs & Organics 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 - 19.17 24.29 37.67 28.63

Competitive Comparison of Mangalam Drugs & Organics's Gross Margin %

For the Drug Manufacturers - Specialty & Generic subindustry, Mangalam Drugs & Organics'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.


Mangalam Drugs & Organics's Gross Margin % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Mangalam Drugs & Organics's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Mangalam Drugs & Organics's Gross Margin % falls into.



Mangalam Drugs & Organics Gross Margin % Calculation

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

Mangalam Drugs & Organics'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 )
=701.5 / 3659.677
=(Revenue - Cost of Goods Sold) / Revenue
=(3659.677 - 2958.173) / 3659.677
=19.17 %

Mangalam Drugs & Organics'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 )
=277.8 / 970.459
=(Revenue - Cost of Goods Sold) / Revenue
=(970.459 - 692.651) / 970.459
=28.63 %

* 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.


Mangalam Drugs & Organics  (BOM:532637) 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

Mangalam Drugs & Organics had a gross margin of 28.63% 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.


Mangalam Drugs & Organics Gross Margin % Related Terms

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Mangalam Drugs & Organics (BOM:532637) Business Description

Traded in Other Exchanges
Address
239, P. D’Mello Road, Rupam Building, 3rd Floor, Near General Post Office, Mumbai, MH, IND, 400001
Mangalam Drugs & Organics Ltd is an Indian company operating in the healthcare sector. It is engaged in the research and development and manufacturing of drugs. Its product range includes Active Pharmaceutical Ingredients (APIs), Intermediates, and Specialty chemicals. Its sales comprise of sales in the Indian and overseas markets.

Mangalam Drugs & Organics (BOM:532637) Headlines

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