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Kirloskar Pneumatic Co (BOM:505283) Gross Margin % : 48.98% (As of Sep. 2024)


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What is Kirloskar Pneumatic Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Kirloskar Pneumatic Co's Gross Profit for the three months ended in Sep. 2024 was ₹2,110 Mil. Kirloskar Pneumatic Co's Revenue for the three months ended in Sep. 2024 was ₹4,307 Mil. Therefore, Kirloskar Pneumatic Co's Gross Margin % for the quarter that ended in Sep. 2024 was 48.98%.

Warning Sign:

Kirloskar Pneumatic Co 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 Kirloskar Pneumatic Co's Gross Margin % or its related term are showing as below:

BOM:505283' s Gross Margin % Range Over the Past 10 Years
Min: 32.49   Med: 36.99   Max: 48.85
Current: 37.75


During the past 13 years, the highest Gross Margin % of Kirloskar Pneumatic Co was 48.85%. The lowest was 32.49%. And the median was 36.99%.

BOM:505283's Gross Margin % is ranked better than
76.46% of 2953 companies
in the Industrial Products industry
Industry Median: 26.71 vs BOM:505283: 37.75

Kirloskar Pneumatic Co had a gross margin of 48.98% for the quarter that ended in Sep. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Kirloskar Pneumatic Co was -1.90% per year.


Kirloskar Pneumatic Co Gross Margin % Historical Data

The historical data trend for Kirloskar Pneumatic Co'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.

Kirloskar Pneumatic Co Gross Margin % Chart

Kirloskar Pneumatic Co 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 34.93 32.49 34.53 32.77 35.05

Kirloskar Pneumatic Co 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 45.87 48.14 13.27 51.10 48.98

Competitive Comparison of Kirloskar Pneumatic Co's Gross Margin %

For the Specialty Industrial Machinery subindustry, Kirloskar Pneumatic Co'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.


Kirloskar Pneumatic Co's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Kirloskar Pneumatic Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Kirloskar Pneumatic Co's Gross Margin % falls into.



Kirloskar Pneumatic Co Gross Margin % Calculation

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

Kirloskar Pneumatic Co'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 )
=4596.9 / 13115.23
=(Revenue - Cost of Goods Sold) / Revenue
=(13115.23 - 8518.32) / 13115.23
=35.05 %

Kirloskar Pneumatic Co'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 )
=2109.5 / 4306.7
=(Revenue - Cost of Goods Sold) / Revenue
=(4306.7 - 2197.2) / 4306.7
=48.98 %

* 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.


Kirloskar Pneumatic Co  (BOM:505283) 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

Kirloskar Pneumatic Co had a gross margin of 48.98% 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.


Kirloskar Pneumatic Co Gross Margin % Related Terms

Thank you for viewing the detailed overview of Kirloskar Pneumatic Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Kirloskar Pneumatic Co Business Description

Traded in Other Exchanges
Address
Hadapsar Industrial Estate, Plot No. 1, Pune, MH, IND, 411 013
Kirloskar Pneumatic Co Ltd is an India-based company, which engages in the manufacture of air compressors and pneumatic tools. The company operates in the following segments; the Compression Products or Systems segment which offers Air, gas, and refrigeration compressors; as well as packages and systems. The Other non-reportable Segments comprise the Remaining nonqualifying segments. The firm generates maximum revenue from the Compression Products or Systems segment.

Kirloskar Pneumatic Co Headlines

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