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East West Holdings (BOM:540006) Gross Margin % : 11.98% (As of Dec. 2023)


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What is East West Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. East West Holdings's Gross Profit for the three months ended in Dec. 2023 was ₹50 Mil. East West Holdings's Revenue for the three months ended in Dec. 2023 was ₹420 Mil. Therefore, East West Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 11.98%.

Warning Sign:

East West Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.9%.


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

BOM:540006' s Gross Margin % Range Over the Past 10 Years
Min: 1.09   Med: 7.74   Max: 11.58
Current: 9.85


During the past 13 years, the highest Gross Margin % of East West Holdings was 11.58%. The lowest was 1.09%. And the median was 7.74%.

BOM:540006's Gross Margin % is ranked worse than
78.61% of 949 companies
in the Transportation industry
Industry Median: 20.08 vs BOM:540006: 9.85

East West Holdings had a gross margin of 11.98% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for East West Holdings was -1.90% per year.


East West Holdings Gross Margin % Historical Data

The historical data trend for East West Holdings'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.

East West Holdings Gross Margin % Chart

East West Holdings 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 8.47 7.74 8.24 7.75 6.67

East West Holdings 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 5.56 9.64 9.22 8.84 11.98

Competitive Comparison of East West Holdings's Gross Margin %

For the Integrated Freight & Logistics subindustry, East West Holdings'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.


East West Holdings's Gross Margin % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, East West Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where East West Holdings's Gross Margin % falls into.



East West Holdings Gross Margin % Calculation

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

East West Holdings'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 )
=166.8 / 2500.007
=(Revenue - Cost of Goods Sold) / Revenue
=(2500.007 - 2333.205) / 2500.007
=6.67 %

East West Holdings'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 )
=50.4 / 420.416
=(Revenue - Cost of Goods Sold) / Revenue
=(420.416 - 370.044) / 420.416
=11.98 %

* 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.


East West Holdings  (BOM:540006) 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

East West Holdings had a gross margin of 11.98% 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.


East West Holdings Gross Margin % Related Terms

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East West Holdings (BOM:540006) Business Description

Traded in Other Exchanges
N/A
Address
Sahar Chakala Road, Unit No. 62, Adarsh Industrial Estate, Andheri East, Mumbai, MH, IND, 400099
East West Holdings Ltd is a company that operates in the transportation sector. The company is engaged in providing logistics solutions including air and ocean freight forwarding operation and road transportation. Its only operating segment being Transportation, Logistic and allied activities.

East West Holdings (BOM:540006) Headlines

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