GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Gensol Engineering Ltd (BOM:542851) » Definitions » Gross Margin %

Gensol Engineering (BOM:542851) Gross Margin % : 24.35% (As of Mar. 2024)


View and export this data going back to 2019. Start your Free Trial

What is Gensol Engineering Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Gensol Engineering's Gross Profit for the three months ended in Mar. 2024 was ₹971 Mil. Gensol Engineering's Revenue for the three months ended in Mar. 2024 was ₹3,988 Mil. Therefore, Gensol Engineering's Gross Margin % for the quarter that ended in Mar. 2024 was 24.35%.

Warning Sign:

Gensol Engineering Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.2%.


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

BOM:542851' s Gross Margin % Range Over the Past 10 Years
Min: 14.92   Med: 32.69   Max: 36.81
Current: 32.85


During the past 8 years, the highest Gross Margin % of Gensol Engineering was 36.81%. The lowest was 14.92%. And the median was 32.69%.

BOM:542851's Gross Margin % is ranked better than
58.54% of 972 companies
in the Semiconductors industry
Industry Median: 28.725 vs BOM:542851: 32.85

Gensol Engineering had a gross margin of 24.35% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Gensol Engineering was -3.20% per year.


Gensol Engineering Gross Margin % Historical Data

The historical data trend for Gensol Engineering'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.

Gensol Engineering Gross Margin % Chart

Gensol Engineering Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Gross Margin %
Get a 7-Day Free Trial 32.56 32.82 21.60 28.62 32.85

Gensol Engineering Quarterly Data
Mar17 Mar18 Mar19 Mar20 Sep20 Mar21 Sep21 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 27.12 42.91 34.89 39.78 24.35

Competitive Comparison of Gensol Engineering's Gross Margin %

For the Solar subindustry, Gensol Engineering'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.


Gensol Engineering's Gross Margin % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Gensol Engineering's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Gensol Engineering's Gross Margin % falls into.



Gensol Engineering Gross Margin % Calculation

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

Gensol Engineering'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 )
=3163.6 / 9631
=(Revenue - Cost of Goods Sold) / Revenue
=(9631 - 6467.4) / 9631
=32.85 %

Gensol Engineering'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 )
=971.1 / 3988.2
=(Revenue - Cost of Goods Sold) / Revenue
=(3988.2 - 3017.1) / 3988.2
=24.35 %

* 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.


Gensol Engineering  (BOM:542851) 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

Gensol Engineering had a gross margin of 24.35% 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.


Gensol Engineering Gross Margin % Related Terms

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


Gensol Engineering (BOM:542851) Business Description

Traded in Other Exchanges
Address
Westgate Business Bay, Block - A, 15th FLoor, Makarba, Ahmedabad, GJ, IND, 380051
Gensol Engineering Ltd is a renewable energy solutions provider focused on end to end solar engineering, procurement, and construction projects. It is engaged in providing technical due diligence, detailed engineering, quality control, construction supervision, and other consulting services for solar projects across various countries, including India.

Gensol Engineering (BOM:542851) Headlines

No Headlines