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Sanghvi Brands (BOM:540782) Gross Margin % : 87.93% (As of Mar. 2024)


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What is Sanghvi Brands Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Sanghvi Brands's Gross Profit for the six months ended in Mar. 2024 was ₹42.39 Mil. Sanghvi Brands's Revenue for the six months ended in Mar. 2024 was ₹48.20 Mil. Therefore, Sanghvi Brands's Gross Margin % for the quarter that ended in Mar. 2024 was 87.93%.


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

BOM:540782' s Gross Margin % Range Over the Past 10 Years
Min: 66.92   Med: 89.44   Max: 96.44
Current: 90.85


During the past 12 years, the highest Gross Margin % of Sanghvi Brands was 96.44%. The lowest was 66.92%. And the median was 89.44%.

BOM:540782's Gross Margin % is ranked better than
94.17% of 103 companies
in the Personal Services industry
Industry Median: 45.25 vs BOM:540782: 90.85

Sanghvi Brands had a gross margin of 87.93% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Sanghvi Brands was 2.30% per year.


Sanghvi Brands Gross Margin % Historical Data

The historical data trend for Sanghvi Brands'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.

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Sanghvi Brands Gross Margin % Chart

Sanghvi Brands 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 80.86 66.92 77.12 96.13 90.85

Sanghvi Brands Semi-Annual Data
Mar13 Mar14 Mar15 Mar16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 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 75.38 95.00 97.21 94.11 87.93

Competitive Comparison of Sanghvi Brands's Gross Margin %

For the Personal Services subindustry, Sanghvi Brands'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.


Sanghvi Brands's Gross Margin % Distribution in the Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, Sanghvi Brands's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Sanghvi Brands's Gross Margin % falls into.



Sanghvi Brands Gross Margin % Calculation

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

Sanghvi Brands'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 )
=82.9 / 91.27
=(Revenue - Cost of Goods Sold) / Revenue
=(91.27 - 8.351) / 91.27
=90.85 %

Sanghvi Brands'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 )
=42.4 / 48.202
=(Revenue - Cost of Goods Sold) / Revenue
=(48.202 - 5.816) / 48.202
=87.93 %

* 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.


Sanghvi Brands  (BOM:540782) 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

Sanghvi Brands had a gross margin of 87.93% 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.


Sanghvi Brands Gross Margin % Related Terms

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


Sanghvi Brands (BOM:540782) Business Description

Traded in Other Exchanges
N/A
Address
Shivajinagar, Sanghvi House, 105/2, Pune, MH, IND, 411005
Sanghvi Brands Ltd is engaged in the business of branding national and international brands, dealing in goods and services of such brands, and providing spa services. Its brands include Spa Loccitane, Elle Spas and Salons, Warren Tricomi, Ramona Braganza, Elemis, and Holyfield Gyms. The company has a domestic as well as an international presence. Revenue is generated from the sale of products and services. The majority of the revenue is generated from the sale of services.

Sanghvi Brands (BOM:540782) Headlines

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