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Kakatiya Cement Sugar & Industries (BOM:500234) Gross Margin % : 33.76% (As of Mar. 2024)


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What is Kakatiya Cement Sugar & Industries Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Kakatiya Cement Sugar & Industries's Gross Profit for the three months ended in Mar. 2024 was ₹104 Mil. Kakatiya Cement Sugar & Industries's Revenue for the three months ended in Mar. 2024 was ₹309 Mil. Therefore, Kakatiya Cement Sugar & Industries's Gross Margin % for the quarter that ended in Mar. 2024 was 33.76%.

Warning Sign:

Kakatiya Cement Sugar & Industries Ltd gross margin has been in long-term decline. The average rate of decline per year is -19.2%.


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

BOM:500234' s Gross Margin % Range Over the Past 10 Years
Min: 18.91   Med: 49.62   Max: 69.65
Current: 23.84


During the past 13 years, the highest Gross Margin % of Kakatiya Cement Sugar & Industries was 69.65%. The lowest was 18.91%. And the median was 49.62%.

BOM:500234's Gross Margin % is ranked worse than
55.17% of 377 companies
in the Building Materials industry
Industry Median: 25.36 vs BOM:500234: 23.84

Kakatiya Cement Sugar & Industries had a gross margin of 33.76% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Kakatiya Cement Sugar & Industries was -19.20% per year.


Kakatiya Cement Sugar & Industries Gross Margin % Historical Data

The historical data trend for Kakatiya Cement Sugar & 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.

Kakatiya Cement Sugar & Industries Gross Margin % Chart

Kakatiya Cement Sugar & Industries 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 49.34 60.35 32.57 18.91 23.84

Kakatiya Cement Sugar & Industries Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 16.04 17.41 28.44 19.14 33.76

Competitive Comparison of Kakatiya Cement Sugar & Industries's Gross Margin %

For the Building Materials subindustry, Kakatiya Cement Sugar & 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.


Kakatiya Cement Sugar & Industries's Gross Margin % Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Kakatiya Cement Sugar & Industries's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Kakatiya Cement Sugar & Industries's Gross Margin % falls into.



Kakatiya Cement Sugar & Industries Gross Margin % Calculation

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

Kakatiya Cement Sugar & Industries'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 )
=371.7 / 1559.525
=(Revenue - Cost of Goods Sold) / Revenue
=(1559.525 - 1187.793) / 1559.525
=23.84 %

Kakatiya Cement Sugar & Industries's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=104.2 / 308.586
=(Revenue - Cost of Goods Sold) / Revenue
=(308.586 - 204.403) / 308.586
=33.76 %

* 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.


Kakatiya Cement Sugar & Industries  (BOM:500234) 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

Kakatiya Cement Sugar & Industries had a gross margin of 33.76% for the quarter that ended in Mar. 2024 => 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.


Kakatiya Cement Sugar & Industries Gross Margin % Related Terms

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Kakatiya Cement Sugar & Industries (BOM:500234) Business Description

Traded in Other Exchanges
Address
1-10-140/1, Gurukrupa, Ashok Nagar, Hyderabad, TG, IND, 500020
Kakatiya Cement Sugar & Industries Ltd is engaged in delivering products and solutions to the cement, sugar, and power generation industry. It is organized into three segments namely, the Cement segment produces, manufactures, refines, and prepares the portland cement; the Sugar segment deals mainly with the crushing of sugar cane and the Power segment generates and distributes the power. It generates the majority of its revenue from the cement segment. The operations of the company are confined to India only.

Kakatiya Cement Sugar & Industries (BOM:500234) Headlines

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