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Khaitan Chemicals & Fertilizers (BOM:507794) Gross Margin % : 27.37% (As of Sep. 2024)


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What is Khaitan Chemicals & Fertilizers Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Khaitan Chemicals & Fertilizers's Gross Profit for the three months ended in Sep. 2024 was ₹631 Mil. Khaitan Chemicals & Fertilizers's Revenue for the three months ended in Sep. 2024 was ₹2,306 Mil. Therefore, Khaitan Chemicals & Fertilizers's Gross Margin % for the quarter that ended in Sep. 2024 was 27.37%.

Warning Sign:

Khaitan Chemicals & Fertilizers Ltd gross margin has been in long-term decline. The average rate of decline per year is -12.9%.


The historical rank and industry rank for Khaitan Chemicals & Fertilizers's Gross Margin % or its related term are showing as below:

BOM:507794' s Gross Margin % Range Over the Past 10 Years
Min: 12.08   Med: 29.79   Max: 33.68
Current: 12.08


During the past 13 years, the highest Gross Margin % of Khaitan Chemicals & Fertilizers was 33.68%. The lowest was 12.08%. And the median was 29.79%.

BOM:507794's Gross Margin % is ranked worse than
73.47% of 245 companies
in the Agriculture industry
Industry Median: 22.35 vs BOM:507794: 12.08

Khaitan Chemicals & Fertilizers had a gross margin of 27.37% for the quarter that ended in Sep. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Khaitan Chemicals & Fertilizers was -12.90% per year.


Khaitan Chemicals & Fertilizers Gross Margin % Historical Data

The historical data trend for Khaitan Chemicals & Fertilizers'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.

Khaitan Chemicals & Fertilizers Gross Margin % Chart

Khaitan Chemicals & Fertilizers 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 30.07 33.68 31.39 24.49 13.44

Khaitan Chemicals & Fertilizers 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 26.02 19.62 -109.67 24.67 27.37

Competitive Comparison of Khaitan Chemicals & Fertilizers's Gross Margin %

For the Agricultural Inputs subindustry, Khaitan Chemicals & Fertilizers'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.


Khaitan Chemicals & Fertilizers's Gross Margin % Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Khaitan Chemicals & Fertilizers's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Khaitan Chemicals & Fertilizers's Gross Margin % falls into.



Khaitan Chemicals & Fertilizers Gross Margin % Calculation

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

Khaitan Chemicals & Fertilizers'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 )
=718.5 / 5346.994
=(Revenue - Cost of Goods Sold) / Revenue
=(5346.994 - 4628.54) / 5346.994
=13.44 %

Khaitan Chemicals & Fertilizers'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 )
=631.4 / 2306.48
=(Revenue - Cost of Goods Sold) / Revenue
=(2306.48 - 1675.123) / 2306.48
=27.37 %

* 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.


Khaitan Chemicals & Fertilizers  (BOM:507794) 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

Khaitan Chemicals & Fertilizers had a gross margin of 27.37% for the quarter that ended in Sep. 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.


Khaitan Chemicals & Fertilizers Gross Margin % Related Terms

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Khaitan Chemicals & Fertilizers Business Description

Traded in Other Exchanges
Address
Nipania Main Road, The B Zone, 7th Floor, Pipliya Kumar, Indore, MP, IND, 453771
Khaitan Chemicals & Fertilizers Ltd is a manufacturer of straight inorganic fertilizers. The company is mainly engaged in the manufacturing of Single Super Phosphate, Sulphuric Acid, and Soya Edible Oil. The segments of the group are Fertilizers and Chemicals, and Speciality Chemicals and others. The products of the company are sold under the brand names Khaitan and Utsav. The Fertilizer and Chemical division of the company is the main contributor to the company's turnover.

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