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Sharda Cropchem (BOM:538666) Gross Margin % : 34.59% (As of Mar. 2024)


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What is Sharda Cropchem Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Sharda Cropchem's Gross Profit for the three months ended in Mar. 2024 was ₹4,538 Mil. Sharda Cropchem's Revenue for the three months ended in Mar. 2024 was ₹13,121 Mil. Therefore, Sharda Cropchem's Gross Margin % for the quarter that ended in Mar. 2024 was 34.59%.

Warning Sign:

Sharda Cropchem Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.8%.


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

BOM:538666' s Gross Margin % Range Over the Past 10 Years
Min: 25.94   Med: 31.05   Max: 35.56
Current: 25.95


During the past 11 years, the highest Gross Margin % of Sharda Cropchem was 35.56%. The lowest was 25.94%. And the median was 31.05%.

BOM:538666's Gross Margin % is ranked better than
51.9% of 237 companies
in the Agriculture industry
Industry Median: 24.71 vs BOM:538666: 25.95

Sharda Cropchem had a gross margin of 34.59% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Sharda Cropchem was -2.80% per year.


Sharda Cropchem Gross Margin % Historical Data

The historical data trend for Sharda Cropchem'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.

Sharda Cropchem Gross Margin % Chart

Sharda Cropchem 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 30.51 31.59 30.09 29.28 25.94

Sharda Cropchem 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 31.58 8.74 25.06 26.18 34.59

Competitive Comparison of Sharda Cropchem's Gross Margin %

For the Agricultural Inputs subindustry, Sharda Cropchem'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.


Sharda Cropchem's Gross Margin % Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Sharda Cropchem's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Sharda Cropchem's Gross Margin % falls into.



Sharda Cropchem Gross Margin % Calculation

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

Sharda Cropchem'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 )
=8206.4 / 31630.245
=(Revenue - Cost of Goods Sold) / Revenue
=(31630.245 - 23423.861) / 31630.245
=25.94 %

Sharda Cropchem'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 )
=4538 / 13120.504
=(Revenue - Cost of Goods Sold) / Revenue
=(13120.504 - 8582.538) / 13120.504
=34.59 %

* 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.


Sharda Cropchem  (BOM:538666) 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

Sharda Cropchem had a gross margin of 34.59% 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.


Sharda Cropchem Gross Margin % Related Terms

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Sharda Cropchem (BOM:538666) Business Description

Traded in Other Exchanges
Address
Dashrathlal Joshi Road, 2nd Floor, Prime Business Park, Vile Parle (West), Mumbai, MH, IND, 400 056
Sharda Cropchem Ltd is an agrochemical company based in India. It markets and sells formulations and active ingredients for agricultural purposes world wide through its subsidiaries. its business is obtained from the European continent. Its customers are also spread across North America, Latin America, and the Rest of the world. The company functions through two segments, which are Agrochemicals, and Non Agrochemicals. The company earns its income through the development and sale of agrochemicals such as insecticides, herbicides, fungicides, and biocides. The company also sells conveyor belts and V-belts under the belts segment.

Sharda Cropchem (BOM:538666) Headlines

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