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Rasi Electrodes (BOM:531233) Gross Margin % : 20.37% (As of Mar. 2024)


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What is Rasi Electrodes Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Rasi Electrodes's Gross Profit for the three months ended in Mar. 2024 was ₹46.3 Mil. Rasi Electrodes's Revenue for the three months ended in Mar. 2024 was ₹227.4 Mil. Therefore, Rasi Electrodes's Gross Margin % for the quarter that ended in Mar. 2024 was 20.37%.


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

BOM:531233' s Gross Margin % Range Over the Past 10 Years
Min: 13.82   Med: 18.31   Max: 23.71
Current: 18.62


During the past 13 years, the highest Gross Margin % of Rasi Electrodes was 23.71%. The lowest was 13.82%. And the median was 18.31%.

BOM:531233's Gross Margin % is ranked worse than
72.87% of 2934 companies
in the Industrial Products industry
Industry Median: 26.57 vs BOM:531233: 18.62

Rasi Electrodes had a gross margin of 20.37% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Rasi Electrodes was -0.10% per year.


Rasi Electrodes Gross Margin % Historical Data

The historical data trend for Rasi Electrodes'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.

Rasi Electrodes Gross Margin % Chart

Rasi Electrodes 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 18.62 18.00 13.82 16.67 18.62

Rasi Electrodes 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 17.28 16.37 18.93 18.40 20.37

Competitive Comparison of Rasi Electrodes's Gross Margin %

For the Tools & Accessories subindustry, Rasi Electrodes'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.


Rasi Electrodes's Gross Margin % Distribution in the Industrial Products Industry

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

* The bar in red indicates where Rasi Electrodes's Gross Margin % falls into.



Rasi Electrodes Gross Margin % Calculation

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

Rasi Electrodes'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 )
=156.1 / 838.274
=(Revenue - Cost of Goods Sold) / Revenue
=(838.274 - 682.22) / 838.274
=18.62 %

Rasi Electrodes'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 )
=46.3 / 227.398
=(Revenue - Cost of Goods Sold) / Revenue
=(227.398 - 181.073) / 227.398
=20.37 %

* 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.


Rasi Electrodes  (BOM:531233) 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

Rasi Electrodes had a gross margin of 20.37% for the quarter that ended in Mar. 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.


Rasi Electrodes Gross Margin % Related Terms

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Rasi Electrodes (BOM:531233) Business Description

Traded in Other Exchanges
N/A
Address
Number 21, Raja Annamalai Road, Flat A/14, Rams Apartment, 3rd Floor, Purasawalkam, Chennai, TN, IND, 600084
Rasi Electrodes Ltd is an Indian company engaged in manufacturing welding consumables catering to the requirements of the Heavy Engineering and Light Engineering industries. The Company is a supplier of welding consumables under the brand name RASI for public-sector undertakings private-sector engineering conglomerates and other Original Equipment Manufacturers. The Company also deals in diverse welding products such as welding machines and accessories.

Rasi Electrodes (BOM:531233) Headlines

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