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H P Cotton Textile Mills (BOM:502873) Gross Margin % : 60.03% (As of Dec. 2024)


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What is H P Cotton Textile Mills Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. H P Cotton Textile Mills's Gross Profit for the three months ended in Dec. 2024 was ₹196 Mil. H P Cotton Textile Mills's Revenue for the three months ended in Dec. 2024 was ₹327 Mil. Therefore, H P Cotton Textile Mills's Gross Margin % for the quarter that ended in Dec. 2024 was 60.03%.

Warning Sign:

H P Cotton Textile Mills Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.6%.


The historical rank and industry rank for H P Cotton Textile Mills's Gross Margin % or its related term are showing as below:

BOM:502873' s Gross Margin % Range Over the Past 10 Years
Min: 40.24   Med: 51.28   Max: 58.02
Current: 56.58


During the past 13 years, the highest Gross Margin % of H P Cotton Textile Mills was 58.02%. The lowest was 40.24%. And the median was 51.28%.

BOM:502873's Gross Margin % is ranked better than
86.85% of 1019 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 25 vs BOM:502873: 56.58

H P Cotton Textile Mills had a gross margin of 60.03% for the quarter that ended in Dec. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for H P Cotton Textile Mills was -1.60% per year.


H P Cotton Textile Mills Gross Margin % Historical Data

The historical data trend for H P Cotton Textile Mills'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.

H P Cotton Textile Mills Gross Margin % Chart

H P Cotton Textile Mills 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 57.89 58.02 53.29 42.68 55.38

H P Cotton Textile Mills Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 55.10 33.65 65.05 56.46 60.03

Competitive Comparison of H P Cotton Textile Mills's Gross Margin %

For the Textile Manufacturing subindustry, H P Cotton Textile Mills'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.


H P Cotton Textile Mills's Gross Margin % Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, H P Cotton Textile Mills's Gross Margin % distribution charts can be found below:

* The bar in red indicates where H P Cotton Textile Mills's Gross Margin % falls into.


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H P Cotton Textile Mills Gross Margin % Calculation

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

H P Cotton Textile Mills'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 )
=490.4 / 885.506
=(Revenue - Cost of Goods Sold) / Revenue
=(885.506 - 395.156) / 885.506
=55.38 %

H P Cotton Textile Mills's Gross Margin for the quarter that ended in Dec. 2024 is calculated as


Gross Margin % (Q: Dec. 2024 )=Gross Profit (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=196 / 326.5
=(Revenue - Cost of Goods Sold) / Revenue
=(326.5 - 130.5) / 326.5
=60.03 %

* 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.


H P Cotton Textile Mills  (BOM:502873) 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

H P Cotton Textile Mills had a gross margin of 60.03% for the quarter that ended in Dec. 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.


H P Cotton Textile Mills Gross Margin % Related Terms

Thank you for viewing the detailed overview of H P Cotton Textile Mills's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


H P Cotton Textile Mills Business Description

Traded in Other Exchanges
N/A
Address
1 & 2, Old Ishwar Nagar, Mathura Road, F (0), The Mira Corporate Suites, New Delhi, IND, 110065
H P Cotton Textile Mills Ltd manufactures cotton yarns and threads and is an exporter of cotton specialty yarns and cotton sewing threads. It manufactures two types of threads namely sewing threads and hosiery yarn. Its product portfolio includes Crocheta Crochet Threads, Peecock Hand Knitting Yarn, Embroidery Threads, Lace Threads, Patchwork and Quilting, Kite Flying Thread, Cotton Sewing Threads, and Mercerized Cotton RFD Threads. Geographically, the company generates sales both in India and internationally, with a vast majority of its revenue derived from sewing thread products exported to markets outside India.

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