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Orient Paper & Industries (NSE:ORIENTPPR) Gross Margin % : 43.25% (As of Dec. 2023)


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What is Orient Paper & Industries Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Orient Paper & Industries's Gross Profit for the three months ended in Dec. 2023 was ₹879 Mil. Orient Paper & Industries's Revenue for the three months ended in Dec. 2023 was ₹2,034 Mil. Therefore, Orient Paper & Industries's Gross Margin % for the quarter that ended in Dec. 2023 was 43.25%.

Warning Sign:

Orient Paper & Industries Ltd gross margin has been in long-term decline. The average rate of decline per year is -18.2%.


The historical rank and industry rank for Orient Paper & Industries's Gross Margin % or its related term are showing as below:

NSE:ORIENTPPR' s Gross Margin % Range Over the Past 10 Years
Min: 26.5   Med: 41.22   Max: 71.17
Current: 42.36


During the past 13 years, the highest Gross Margin % of Orient Paper & Industries was 71.17%. The lowest was 26.50%. And the median was 41.22%.

NSE:ORIENTPPR's Gross Margin % is ranked better than
84.45% of 283 companies
in the Forest Products industry
Industry Median: 19.39 vs NSE:ORIENTPPR: 42.36

Orient Paper & Industries had a gross margin of 43.25% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Orient Paper & Industries was -18.20% per year.


Orient Paper & Industries Gross Margin % Historical Data

The historical data trend for Orient Paper & Industries'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.

Orient Paper & Industries Gross Margin % Chart

Orient Paper & Industries 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 71.17 67.90 28.75 26.50 37.40

Orient Paper & Industries 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 49.03 39.48 47.23 37.81 43.25

Competitive Comparison of Orient Paper & Industries's Gross Margin %

For the Paper & Paper Products subindustry, Orient Paper & Industries'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.


Orient Paper & Industries's Gross Margin % Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Orient Paper & Industries's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Orient Paper & Industries's Gross Margin % falls into.



Orient Paper & Industries Gross Margin % Calculation

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

Orient Paper & Industries'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 )
=3485.6 / 9319.947
=(Revenue - Cost of Goods Sold) / Revenue
=(9319.947 - 5834.309) / 9319.947
=37.40 %

Orient Paper & Industries'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 )
=879.5 / 2033.676
=(Revenue - Cost of Goods Sold) / Revenue
=(2033.676 - 1154.195) / 2033.676
=43.25 %

* 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.


Orient Paper & Industries  (NSE:ORIENTPPR) 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

Orient Paper & Industries had a gross margin of 43.25% 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.


Orient Paper & Industries Gross Margin % Related Terms

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Orient Paper & Industries (NSE:ORIENTPPR) Business Description

Traded in Other Exchanges
Address
9/1, R. N. Mukherjee Road, 9th Floor, Birla Building, Kolkata, WB, IND, 700001
Orient Paper & Industries Ltd is engaged in the manufacturing and selling of paper and other paper-related products and chemicals. The company produces pulp and paper for writing, printing, industrial, and specialty papers. The company manages its business into segments namely Paper and Tissue, and Chemicals. The company generates maximum revenue from the Paper & Tissue segment. The company operates its business in India and overseas.

Orient Paper & Industries (NSE:ORIENTPPR) Headlines

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