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Saffron Industries (BOM:531436) Gross Margin % : 39.26% (As of Dec. 2023)


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What is Saffron Industries Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Saffron Industries's Gross Profit for the three months ended in Dec. 2023 was ₹14.7 Mil. Saffron Industries's Revenue for the three months ended in Dec. 2023 was ₹37.5 Mil. Therefore, Saffron Industries's Gross Margin % for the quarter that ended in Dec. 2023 was 39.26%.


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

BOM:531436' s Gross Margin % Range Over the Past 10 Years
Min: -0.7   Med: 8.9   Max: 43.56
Current: 13.61


During the past 13 years, the highest Gross Margin % of Saffron Industries was 43.56%. The lowest was -0.70%. And the median was 8.90%.

BOM:531436's Gross Margin % is ranked worse than
68.9% of 283 companies
in the Forest Products industry
Industry Median: 19.39 vs BOM:531436: 13.61

Saffron Industries had a gross margin of 39.26% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Saffron Industries was 0.00% per year.


Saffron Industries Gross Margin % Historical Data

The historical data trend for Saffron Industries'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.

Saffron Industries Gross Margin % Chart

Saffron Industries 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 30.80 39.04 -0.70 2.75 7.04

Saffron Industries 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 23.88 -25.98 9.30 - 39.26

Competitive Comparison of Saffron Industries's Gross Margin %

For the Paper & Paper Products subindustry, Saffron Industries'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.


Saffron Industries's Gross Margin % Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Saffron Industries's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Saffron Industries's Gross Margin % falls into.



Saffron Industries Gross Margin % Calculation

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

Saffron Industries'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 )
=12 / 170.174
=(Revenue - Cost of Goods Sold) / Revenue
=(170.174 - 158.2) / 170.174
=7.04 %

Saffron Industries'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 )
=14.7 / 37.511
=(Revenue - Cost of Goods Sold) / Revenue
=(37.511 - 22.784) / 37.511
=39.26 %

* 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.


Saffron Industries  (BOM:531436) 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

Saffron Industries had a gross margin of 39.26% for the quarter that ended in Dec. 2023 => 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.


Saffron Industries Gross Margin % Related Terms

Thank you for viewing the detailed overview of Saffron Industries's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Saffron Industries (BOM:531436) Business Description

Traded in Other Exchanges
N/A
Address
Wardha Road, Navabharat Bhavan, Chhatrapati Square, Nagpur, MH, IND, 440015
Saffron Industries Ltd is engaged in the manufacturing of paper and paper products. The company is involved in the production of newsprint, kraft paper, Colour Boards, Chromo Papers and among others.

Saffron Industries (BOM:531436) Headlines

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