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Seshasayee Paper & Boards (BOM:502450) Gross Margin % : 40.31% (As of Sep. 2024)


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What is Seshasayee Paper & Boards Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Seshasayee Paper & Boards's Gross Profit for the three months ended in Sep. 2024 was ₹1,606 Mil. Seshasayee Paper & Boards's Revenue for the three months ended in Sep. 2024 was ₹3,985 Mil. Therefore, Seshasayee Paper & Boards's Gross Margin % for the quarter that ended in Sep. 2024 was 40.31%.

Warning Sign:

Seshasayee Paper & Boards 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 Seshasayee Paper & Boards's Gross Margin % or its related term are showing as below:

BOM:502450' s Gross Margin % Range Over the Past 10 Years
Min: 29.48   Med: 37.03   Max: 41.94
Current: 29.48


During the past 13 years, the highest Gross Margin % of Seshasayee Paper & Boards was 41.94%. The lowest was 29.48%. And the median was 37.03%.

BOM:502450's Gross Margin % is ranked better than
67.27% of 278 companies
in the Forest Products industry
Industry Median: 19.04 vs BOM:502450: 29.48

Seshasayee Paper & Boards had a gross margin of 40.31% for the quarter that ended in Sep. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Seshasayee Paper & Boards was -1.90% per year.


Seshasayee Paper & Boards Gross Margin % Historical Data

The historical data trend for Seshasayee Paper & Boards'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.

Seshasayee Paper & Boards Gross Margin % Chart

Seshasayee Paper & Boards 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 41.94 38.98 29.56 41.02 35.45

Seshasayee Paper & Boards 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 58.31 43.74 -3.21 43.37 40.31

Competitive Comparison of Seshasayee Paper & Boards's Gross Margin %

For the Paper & Paper Products subindustry, Seshasayee Paper & Boards'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.


Seshasayee Paper & Boards's Gross Margin % Distribution in the Forest Products Industry

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

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



Seshasayee Paper & Boards Gross Margin % Calculation

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

Seshasayee Paper & Boards'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 )
=6310.8 / 17803.4
=(Revenue - Cost of Goods Sold) / Revenue
=(17803.4 - 11492.6) / 17803.4
=35.45 %

Seshasayee Paper & Boards'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 )
=1606.1 / 3984.7
=(Revenue - Cost of Goods Sold) / Revenue
=(3984.7 - 2378.6) / 3984.7
=40.31 %

* 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.


Seshasayee Paper & Boards  (BOM:502450) 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

Seshasayee Paper & Boards had a gross margin of 40.31% for the quarter that ended in Sep. 2024 => 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.


Seshasayee Paper & Boards Gross Margin % Related Terms

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Seshasayee Paper & Boards Business Description

Traded in Other Exchanges
Address
Pallipalayam, Cauvery RS PO, Namakkal District, Erode, TN, IND, 638007
Seshasayee Paper & Boards Ltd is engaged in the manufacture of paper and paper boards at its unit at Erode and Tirunelveli. Seshasayee derives maximum revenue from the sale of the paper products in India.

Seshasayee Paper & Boards Headlines

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