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Vindhya Telelinks (BOM:517015) Gross Margin % : 13.47% (As of Mar. 2024)


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What is Vindhya Telelinks Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Vindhya Telelinks's Gross Profit for the three months ended in Mar. 2024 was ₹1,738 Mil. Vindhya Telelinks's Revenue for the three months ended in Mar. 2024 was ₹12,900 Mil. Therefore, Vindhya Telelinks's Gross Margin % for the quarter that ended in Mar. 2024 was 13.47%.

Warning Sign:

Vindhya Telelinks Ltd gross margin has been in long-term decline. The average rate of decline per year is -9.6%.


The historical rank and industry rank for Vindhya Telelinks's Gross Margin % or its related term are showing as below:

BOM:517015' s Gross Margin % Range Over the Past 10 Years
Min: 14.85   Med: 24.71   Max: 29.49
Current: 14.85


During the past 13 years, the highest Gross Margin % of Vindhya Telelinks was 29.49%. The lowest was 14.85%. And the median was 24.71%.

BOM:517015's Gross Margin % is ranked worse than
59.7% of 1613 companies
in the Construction industry
Industry Median: 19.14 vs BOM:517015: 14.85

Vindhya Telelinks had a gross margin of 13.47% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Vindhya Telelinks was -9.60% per year.


Vindhya Telelinks Gross Margin % Historical Data

The historical data trend for Vindhya Telelinks'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.

Vindhya Telelinks Gross Margin % Chart

Vindhya Telelinks 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 23.82 24.93 25.20 17.88 14.85

Vindhya Telelinks Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 14.70 16.55 15.73 14.48 13.47

Competitive Comparison of Vindhya Telelinks's Gross Margin %

For the Engineering & Construction subindustry, Vindhya Telelinks'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.


Vindhya Telelinks's Gross Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Vindhya Telelinks's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Vindhya Telelinks's Gross Margin % falls into.



Vindhya Telelinks Gross Margin % Calculation

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

Vindhya Telelinks'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 )
=6070.3 / 40865.293
=(Revenue - Cost of Goods Sold) / Revenue
=(40865.293 - 34795.034) / 40865.293
=14.85 %

Vindhya Telelinks's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=1737.7 / 12899.836
=(Revenue - Cost of Goods Sold) / Revenue
=(12899.836 - 11162.115) / 12899.836
=13.47 %

* 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.


Vindhya Telelinks  (BOM:517015) 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

Vindhya Telelinks had a gross margin of 13.47% for the quarter that ended in Mar. 2024 => No sustainable 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.


Vindhya Telelinks Gross Margin % Related Terms

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Vindhya Telelinks (BOM:517015) Business Description

Traded in Other Exchanges
Address
Radisson Hotel National Highyway-8, 2nd Floor, Wing-B Commercial Plaza, Mahipalpur, New Delhi, IND, 110037
Vindhya Telelinks Ltd is engaged in the manufacturing and sale of cables as well as turnkey contracts and services business. The company's operating segment includes Cable and EPC (Engineering, Procurement and Construction). It generates maximum revenue from the EPC segment. EPC segment undertakes and executes contracts or provides infrastructure related services with or without materials. Geographically, it derives a majority of its revenue from India. The company derives revenue from goods and services such as Construction Contracts, Indefeasible Right of Usage (IRU), and Operation and Maintenance Services.

Vindhya Telelinks (BOM:517015) Headlines

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