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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:
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%.
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.
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.
Seshasayee Paper & Boards Annual Data | |||||||||||||||||||||
Trend | Mar15 | Mar16 | Mar17 | Mar18 | Mar19 | Mar20 | Mar21 | Mar22 | Mar23 | Mar24 | |||||||||||
Gross Margin % | Get a 7-Day Free Trial | 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 | 58.31 | 43.74 | -3.21 | 43.37 | 40.31 |
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.
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.
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.
Thank you for viewing the detailed overview of Seshasayee Paper & Boards's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
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