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Garden Reach Shipbuilders & Engineers (BOM:542011) Gross Margin % : 20.67% (As of Dec. 2023)


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What is Garden Reach Shipbuilders & Engineers Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Garden Reach Shipbuilders & Engineers's Gross Profit for the three months ended in Dec. 2023 was ₹1,908 Mil. Garden Reach Shipbuilders & Engineers's Revenue for the three months ended in Dec. 2023 was ₹9,231 Mil. Therefore, Garden Reach Shipbuilders & Engineers's Gross Margin % for the quarter that ended in Dec. 2023 was 20.67%.

Warning Sign:

Garden Reach Shipbuilders & Engineers Ltd gross margin has been in long-term decline. The average rate of decline per year is -5.9%.


The historical rank and industry rank for Garden Reach Shipbuilders & Engineers's Gross Margin % or its related term are showing as below:

BOM:542011' s Gross Margin % Range Over the Past 10 Years
Min: 21.77   Med: 34.41   Max: 45.88
Current: 21.77


During the past 11 years, the highest Gross Margin % of Garden Reach Shipbuilders & Engineers was 45.88%. The lowest was 21.77%. And the median was 34.41%.

BOM:542011's Gross Margin % is ranked worse than
59.93% of 297 companies
in the Aerospace & Defense industry
Industry Median: 26.24 vs BOM:542011: 21.77

Garden Reach Shipbuilders & Engineers had a gross margin of 20.67% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Garden Reach Shipbuilders & Engineers was -5.90% per year.


Garden Reach Shipbuilders & Engineers Gross Margin % Historical Data

The historical data trend for Garden Reach Shipbuilders & Engineers'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.

Garden Reach Shipbuilders & Engineers Gross Margin % Chart

Garden Reach Shipbuilders & Engineers 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 35.41 37.34 45.88 31.29 24.21

Garden Reach Shipbuilders & Engineers 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 25.21 24.47 23.99 19.25 20.67

Competitive Comparison of Garden Reach Shipbuilders & Engineers's Gross Margin %

For the Aerospace & Defense subindustry, Garden Reach Shipbuilders & Engineers'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.


Garden Reach Shipbuilders & Engineers's Gross Margin % Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Garden Reach Shipbuilders & Engineers's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Garden Reach Shipbuilders & Engineers's Gross Margin % falls into.



Garden Reach Shipbuilders & Engineers Gross Margin % Calculation

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

Garden Reach Shipbuilders & Engineers'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 )
=6169.2 / 25478.372
=(Revenue - Cost of Goods Sold) / Revenue
=(25478.372 - 19309.189) / 25478.372
=24.21 %

Garden Reach Shipbuilders & Engineers'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 )
=1908.3 / 9230.978
=(Revenue - Cost of Goods Sold) / Revenue
=(9230.978 - 7322.677) / 9230.978
=20.67 %

* 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.


Garden Reach Shipbuilders & Engineers  (BOM:542011) 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

Garden Reach Shipbuilders & Engineers had a gross margin of 20.67% 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.


Garden Reach Shipbuilders & Engineers Gross Margin % Related Terms

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Garden Reach Shipbuilders & Engineers (BOM:542011) Business Description

Traded in Other Exchanges
Address
61, Garden Reach Road, GRSE Bhavan, Kolkata, WB, IND, 700 024
Garden Reach Shipbuilders & Engineers Ltd is an India based shipbuilding company. It is mainly engaged in the engineering and engine production activities. The company offers products and services in three verticals including shipbuilding, engineering, and, engine production. Its product portfolio includes deck machinery items, pumps, portable steel bridges, boat davits, anchors, mooring and dock capstans, and engines.

Garden Reach Shipbuilders & Engineers (BOM:542011) Headlines

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