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Indo Rama Synthetics (India) (BOM:500207) Gross Margin % : 18.05% (As of Sep. 2024)


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What is Indo Rama Synthetics (India) Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Indo Rama Synthetics (India)'s Gross Profit for the three months ended in Sep. 2024 was ₹1,716 Mil. Indo Rama Synthetics (India)'s Revenue for the three months ended in Sep. 2024 was ₹9,506 Mil. Therefore, Indo Rama Synthetics (India)'s Gross Margin % for the quarter that ended in Sep. 2024 was 18.05%.

Warning Sign:

Indo Rama Synthetics (India) Ltd gross margin has been in long-term decline. The average rate of decline per year is -4%.


The historical rank and industry rank for Indo Rama Synthetics (India)'s Gross Margin % or its related term are showing as below:

BOM:500207' s Gross Margin % Range Over the Past 10 Years
Min: 10.68   Med: 18.04   Max: 59429.44
Current: 10.7


During the past 13 years, the highest Gross Margin % of Indo Rama Synthetics (India) was 59429.44%. The lowest was 10.68%. And the median was 18.04%.

BOM:500207's Gross Margin % is ranked worse than
79.63% of 1026 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 25.67 vs BOM:500207: 10.70

Indo Rama Synthetics (India) had a gross margin of 18.05% for the quarter that ended in Sep. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Indo Rama Synthetics (India) was -4.00% per year.


Indo Rama Synthetics (India) Gross Margin % Historical Data

The historical data trend for Indo Rama Synthetics (India)'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.

Indo Rama Synthetics (India) Gross Margin % Chart

Indo Rama Synthetics (India) Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.01 22.42 20.14 14.12 10.68

Indo Rama Synthetics (India) Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 18.80 14.39 -16.99 20.95 18.05

Competitive Comparison of Indo Rama Synthetics (India)'s Gross Margin %

For the Textile Manufacturing subindustry, Indo Rama Synthetics (India)'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.


Indo Rama Synthetics (India)'s Gross Margin % Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Indo Rama Synthetics (India)'s Gross Margin % distribution charts can be found below:

* The bar in red indicates where Indo Rama Synthetics (India)'s Gross Margin % falls into.



Indo Rama Synthetics (India) Gross Margin % Calculation

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

Indo Rama Synthetics (India)'s Gross Margin for the fiscal year that ended in Mar. 2024 is calculated as

Gross Margin % (A: Mar. 2024 )=Gross Profit (A: Mar. 2024 ) / Revenue (A: Mar. 2024 )
=3947.1 / 36961
=(Revenue - Cost of Goods Sold) / Revenue
=(36961 - 33013.9) / 36961
=10.68 %

Indo Rama Synthetics (India)'s Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=1716.1 / 9506.3
=(Revenue - Cost of Goods Sold) / Revenue
=(9506.3 - 7790.2) / 9506.3
=18.05 %

* 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.


Indo Rama Synthetics (India)  (BOM:500207) 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

Indo Rama Synthetics (India) had a gross margin of 18.05% for the quarter that ended in Sep. 2024 => 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.


Indo Rama Synthetics (India) Gross Margin % Related Terms

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Indo Rama Synthetics (India) Business Description

Traded in Other Exchanges
Address
Delhi Press Building, Phase-1V, Plot No. 53 & 54, Udyog Vihar, Gurugram, HR, IND, 122 015
Indo Rama Synthetics (India) Ltd is a polyester manufacturer company. The company offers products such as Polyester Staple Fibre (PSF), Partially Oriented Yarn (POY), Draw Texturised Yarn (DTY), Fully Drawn Yarn (FDY), Polyester Chips and Others. Its only operating segment being the manufacturing and trading of Polyster goods. Geographically, it derives a majority of revenue from India and also has a presence in Turkey, Nepal, and Other overseas countries.

Indo Rama Synthetics (India) Headlines

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