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Mahasagar Travels (BOM:526795) Gross Margin % : 43.23% (As of Dec. 2023)


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What is Mahasagar Travels Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Mahasagar Travels's Gross Profit for the three months ended in Dec. 2023 was ₹49.7 Mil. Mahasagar Travels's Revenue for the three months ended in Dec. 2023 was ₹115.0 Mil. Therefore, Mahasagar Travels's Gross Margin % for the quarter that ended in Dec. 2023 was 43.23%.

Warning Sign:

Mahasagar Travels Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.4%.


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

BOM:526795' s Gross Margin % Range Over the Past 10 Years
Min: 26.77   Med: 43.61   Max: 59.23
Current: 59.23


During the past 13 years, the highest Gross Margin % of Mahasagar Travels was 59.23%. The lowest was 26.77%. And the median was 43.61%.

BOM:526795's Gross Margin % is ranked better than
84.76% of 1096 companies
in the Retail - Cyclical industry
Industry Median: 36.675 vs BOM:526795: 59.23

Mahasagar Travels had a gross margin of 43.23% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Mahasagar Travels was -2.40% per year.


Mahasagar Travels Gross Margin % Historical Data

The historical data trend for Mahasagar Travels'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.

Mahasagar Travels Gross Margin % Chart

Mahasagar Travels Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 45.54 47.54 33.69 41.92 45.29

Mahasagar Travels Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 40.67 80.28 55.26 58.49 43.23

Competitive Comparison of Mahasagar Travels's Gross Margin %

For the Specialty Retail subindustry, Mahasagar Travels'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.


Mahasagar Travels's Gross Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Mahasagar Travels's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Mahasagar Travels's Gross Margin % falls into.



Mahasagar Travels Gross Margin % Calculation

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

Mahasagar Travels's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )=Gross Profit (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=249.3 / 550.544
=(Revenue - Cost of Goods Sold) / Revenue
=(550.544 - 301.221) / 550.544
=45.29 %

Mahasagar Travels's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=49.7 / 115.019
=(Revenue - Cost of Goods Sold) / Revenue
=(115.019 - 65.302) / 115.019
=43.23 %

* 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.


Mahasagar Travels  (BOM:526795) 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

Mahasagar Travels had a gross margin of 43.23% for the quarter that ended in Dec. 2023 => 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.


Mahasagar Travels Gross Margin % Related Terms

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Mahasagar Travels (BOM:526795) Business Description

Traded in Other Exchanges
N/A
Address
Jayshree Talkies Road, Mahasagar House, Kalwa Chowk, Junagadh, GJ, IND, 362001
Mahasagar Travels Ltd is involved in two segments namely Travels and Petroleum. The Petroleum segment generates maximum revenue for the company.

Mahasagar Travels (BOM:526795) Headlines

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