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GE Power India (BOM:532309) Gross Margin % : 27.22% (As of Dec. 2023)


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What is GE Power India Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. GE Power India's Gross Profit for the three months ended in Dec. 2023 was ₹1,242 Mil. GE Power India's Revenue for the three months ended in Dec. 2023 was ₹4,562 Mil. Therefore, GE Power India's Gross Margin % for the quarter that ended in Dec. 2023 was 27.22%.

Warning Sign:

GE Power India Ltd gross margin has been in long-term decline. The average rate of decline per year is -20.2%.


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

BOM:532309' s Gross Margin % Range Over the Past 10 Years
Min: 18.14   Med: 38.37   Max: 58.2
Current: 18.63


During the past 13 years, the highest Gross Margin % of GE Power India was 58.20%. The lowest was 18.14%. And the median was 38.37%.

BOM:532309's Gross Margin % is ranked worse than
51.02% of 1613 companies
in the Construction industry
Industry Median: 19.14 vs BOM:532309: 18.63

GE Power India had a gross margin of 27.22% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for GE Power India was -20.20% per year.


GE Power India Gross Margin % Historical Data

The historical data trend for GE Power India'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.

GE Power India Gross Margin % Chart

GE Power India 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 39.25 28.64 22.60 18.14 20.03

GE Power India 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 30.28 15.53 7.58 23.74 27.22

Competitive Comparison of GE Power India's Gross Margin %

For the Engineering & Construction subindustry, GE Power India'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.


GE Power India's Gross Margin % Distribution in the Construction Industry

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

* The bar in red indicates where GE Power India's Gross Margin % falls into.



GE Power India Gross Margin % Calculation

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

GE Power India'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 )
=3581.4 / 17881.5
=(Revenue - Cost of Goods Sold) / Revenue
=(17881.5 - 14300.1) / 17881.5
=20.03 %

GE Power India'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 )
=1241.7 / 4562.2
=(Revenue - Cost of Goods Sold) / Revenue
=(4562.2 - 3320.5) / 4562.2
=27.22 %

* 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.


GE Power India  (BOM:532309) 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

GE Power India had a gross margin of 27.22% 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.


GE Power India Gross Margin % Related Terms

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GE Power India (BOM:532309) Business Description

Traded in Other Exchanges
Address
Axis House, Towers 5 & 6, Plot No. 1-14, Sector 128, Jaypee Wish Town, Noida, UP, IND, 201301
GE Power India Ltd engages in the construction, engineering, procurement, manufacturing, and servicing of power plants and equipment in India. The company generates the majority of revenue domestically. The company offers products including supercritical and ultra-supercritical boilers, high pressure and beater mills, environmental control systems, automation systems, and gas power systems. Hydro and thermal solutions are also offered, including steam turbine retrofitting.

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