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Valiant organics (BOM:540145) Gross Margin % : 36.09% (As of Dec. 2024)


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What is Valiant organics Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Valiant organics's Gross Profit for the three months ended in Dec. 2024 was ₹674 Mil. Valiant organics's Revenue for the three months ended in Dec. 2024 was ₹1,869 Mil. Therefore, Valiant organics's Gross Margin % for the quarter that ended in Dec. 2024 was 36.09%.

Warning Sign:

Valiant organics Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.5%.


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

BOM:540145' s Gross Margin % Range Over the Past 10 Years
Min: 29.52   Med: 33.23   Max: 44.53
Current: 32.97


During the past 13 years, the highest Gross Margin % of Valiant organics was 44.53%. The lowest was 29.52%. And the median was 33.23%.

BOM:540145's Gross Margin % is ranked better than
74.57% of 1522 companies
in the Chemicals industry
Industry Median: 22.27 vs BOM:540145: 32.97

Valiant organics had a gross margin of 36.09% for the quarter that ended in Dec. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Valiant organics was -2.50% per year.


Valiant organics Gross Margin % Historical Data

The historical data trend for Valiant organics'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.

Valiant organics Gross Margin % Chart

Valiant organics 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 41.75 44.53 31.97 33.73 31.49

Valiant organics Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 35.38 21.39 39.43 35.33 36.09

Competitive Comparison of Valiant organics's Gross Margin %

For the Chemicals subindustry, Valiant organics'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.


Valiant organics's Gross Margin % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Valiant organics's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Valiant organics's Gross Margin % falls into.


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Valiant organics Gross Margin % Calculation

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

Valiant organics'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 )
=2277.2 / 7230.594
=(Revenue - Cost of Goods Sold) / Revenue
=(7230.594 - 4953.419) / 7230.594
=31.49 %

Valiant organics's Gross Margin for the quarter that ended in Dec. 2024 is calculated as


Gross Margin % (Q: Dec. 2024 )=Gross Profit (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=674.3 / 1868.571
=(Revenue - Cost of Goods Sold) / Revenue
=(1868.571 - 1194.233) / 1868.571
=36.09 %

* 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.


Valiant organics  (BOM:540145) 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

Valiant organics had a gross margin of 36.09% for the quarter that ended in Dec. 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.


Valiant organics Gross Margin % Related Terms

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Valiant organics Business Description

Traded in Other Exchanges
Address
Mulund Goregaon Link Road, 109, Udyog Kshetra, 1st Floor, Mulund (West), Mumbai, MH, IND, 400080
Valiant organics Ltd is an Indian chemical manufacturing company. It is engaged in the manufacturing of chemicals for agro-intermediate and pharmaceutical requirements. The product portfolio includes Para ChloroPhenol (PCP) , Ortho ChloroPhenol (OCP), 2,4 Di Chlorophenol (2,4 DCP), 2,6 Di ChloroPhenol (2,6 DCP), 2,4,6 Tri ChloroPhenol (2,4,6 TCP). The chemicals are used in the Rubber, Agriculture, Cosmetic, and Medical sector. The group sells its products in India and other countries, and key revenue is derived from India.

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