Star Cement (BOM:540575) Gross Margin % : 96.20% (As of Mar. 2024)

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What is Star Cement Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Star Cement's Gross Profit for the three months ended in Mar. 2024 was ₹8,788 Mil. Star Cement's Revenue for the three months ended in Mar. 2024 was ₹9,135 Mil. Therefore, Star Cement's Gross Margin % for the quarter that ended in Mar. 2024 was 96.20%.

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

BOM:540575' s Gross Margin % Range Over the Past 10 Years
Min: 72.32 Med: 77.45 Max: 87.38
Current: 83.53

During the past 9 years, the highest Gross Margin % of Star Cement was 87.38%. The lowest was 72.32%. And the median was 77.45%.

BOM:540575's Gross Margin % is ranked better than
96.29% of 377 companies
in the Building Materials industry
Industry Median: 25.36 vs BOM:540575: 83.53

Star Cement had a gross margin of 96.20% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Star Cement was 2.40% per year.

Star Cement Gross Margin % Historical Data

The historical data trend for Star Cement'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.

Star Cement Gross Margin % Chart

Star Cement Annual Data

Trend

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Gross Margin %

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77.45

75.92

72.32

87.38

83.52

Star Cement 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															110.64	73.66	79.58	80.81	96.20

Competitive Comparison of Star Cement's Gross Margin %

For the Building Materials subindustry, Star Cement'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.

Star Cement's Gross Margin % Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Star Cement's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Star Cement's Gross Margin % falls into.

Star Cement Gross Margin % Calculation

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

Star Cement'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 )
	=	24311.3	/	29106.671
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(29106.671 - 4795.367)	/	29106.671
	=	83.52 %

Star Cement'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 )
	=	8788.3	/	9135.319
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(9135.319 - 347.043)	/	9135.319
	=	96.20 %

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.

Star Cement (BOM:540575) 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

Star Cement had a gross margin of 96.20% for the quarter that ended in Mar. 2024 => Durable competitive advantage

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.

Star Cement Gross Margin % Related Terms

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Star Cement (BOM:540575) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Star Cement Ltd (BOM:540575) » Definitions » Gross Margin %

Traded in Other Exchanges

STARCEMENT:India

Address

P-15/1, Taratala Main Road, Century House, 2nd Floor, CPT Colony, Kolkata, WB, IND, 700 088

Website

https://www.starcement.co.in

Star Cement Ltd is a cement company in India. It offers Cement and Cement linker products. The group markets clinker to different grinding units in North East India and parts of Eastern India. It also exports clinker to neighbouring countries like Nepal and Bhutan. The company's product range comprises Ordinary portland cement, Portland pozzolana cement, and Portland slag cement. The company sells its products in India, Nepal and Bhutan, of which prime revenue is generated from the sales made in India.

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