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Link Pharma Chem (BOM:524748) Gross Margin % : 52.87% (As of Mar. 2024)


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What is Link Pharma Chem Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Link Pharma Chem's Gross Profit for the three months ended in Mar. 2024 was ₹42.5 Mil. Link Pharma Chem's Revenue for the three months ended in Mar. 2024 was ₹80.3 Mil. Therefore, Link Pharma Chem's Gross Margin % for the quarter that ended in Mar. 2024 was 52.87%.

Warning Sign:

Link Pharma Chem Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.3%.


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

BOM:524748' s Gross Margin % Range Over the Past 10 Years
Min: 18.75   Med: 44.54   Max: 61
Current: 44.21


During the past 13 years, the highest Gross Margin % of Link Pharma Chem was 61.00%. The lowest was 18.75%. And the median was 44.54%.

BOM:524748's Gross Margin % is ranked better than
87.86% of 1507 companies
in the Chemicals industry
Industry Median: 22.7 vs BOM:524748: 44.21

Link Pharma Chem had a gross margin of 52.87% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Link Pharma Chem was -3.30% per year.


Link Pharma Chem Gross Margin % Historical Data

The historical data trend for Link Pharma Chem'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.

Link Pharma Chem Gross Margin % Chart

Link Pharma Chem 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 52.69 42.75 28.50 44.87 44.21

Link Pharma Chem 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 43.04 29.41 42.15 51.70 52.87

Competitive Comparison of Link Pharma Chem's Gross Margin %

For the Chemicals subindustry, Link Pharma Chem'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.


Link Pharma Chem's Gross Margin % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Link Pharma Chem's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Link Pharma Chem's Gross Margin % falls into.



Link Pharma Chem Gross Margin % Calculation

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

Link Pharma Chem'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 )
=132.2 / 298.977
=(Revenue - Cost of Goods Sold) / Revenue
=(298.977 - 166.809) / 298.977
=44.21 %

Link Pharma Chem'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 )
=42.5 / 80.324
=(Revenue - Cost of Goods Sold) / Revenue
=(80.324 - 37.86) / 80.324
=52.87 %

* 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.


Link Pharma Chem  (BOM:524748) 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

Link Pharma Chem had a gross margin of 52.87% for the quarter that ended in Mar. 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.


Link Pharma Chem Gross Margin % Related Terms

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Link Pharma Chem (BOM:524748) Business Description

Traded in Other Exchanges
N/A
Address
161 - 162, GIDC Estate, Nandesari Industrial Estate, Nandesari, Vadodara, GJ, IND, 391340
Link Pharma Chem Ltd is a chemical manufacturing company in India. The company is engaged in the manufacturing and exporting of multi-range intermediates for pharmaceuticals, agro-industries, and specialty chemicals. It is also engaged in custom synthesis/contract manufacturing for multistage synthesis for a range of companies. It operates through one single segment which is Chemical manufacturing and generates revenue from the same. The company generates the majority of its revenue from domestic sales.

Link Pharma Chem (BOM:524748) Headlines

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