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Tierra Agrotech (BOM:543531) Gross Margin % : -19.65% (As of Dec. 2024)


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What is Tierra Agrotech Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Tierra Agrotech's Gross Profit for the three months ended in Dec. 2024 was ₹-9.4 Mil. Tierra Agrotech's Revenue for the three months ended in Dec. 2024 was ₹47.9 Mil. Therefore, Tierra Agrotech's Gross Margin % for the quarter that ended in Dec. 2024 was -19.65%.

Warning Sign:

Tierra Agrotech Ltd gross margin has been in long-term decline. The average rate of decline per year is -9.6%.


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

BOM:543531' s Gross Margin % Range Over the Past 10 Years
Min: 10.94   Med: 33.26   Max: 43.79
Current: 22.54


During the past 10 years, the highest Gross Margin % of Tierra Agrotech was 43.79%. The lowest was 10.94%. And the median was 33.26%.

BOM:543531's Gross Margin % is ranked better than
50.2% of 249 companies
in the Agriculture industry
Industry Median: 22.51 vs BOM:543531: 22.54

Tierra Agrotech had a gross margin of -19.65% for the quarter that ended in Dec. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Tierra Agrotech was -9.60% per year.


Tierra Agrotech Gross Margin % Historical Data

The historical data trend for Tierra Agrotech'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.

Tierra Agrotech Gross Margin % Chart

Tierra Agrotech 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 32.12 37.20 27.74 10.94 34.43

Tierra Agrotech Quarterly Data
Mar18 Mar19 Mar20 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 -27.97 19.06 30.42 -4.82 -19.65

Competitive Comparison of Tierra Agrotech's Gross Margin %

For the Agricultural Inputs subindustry, Tierra Agrotech'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.


Tierra Agrotech's Gross Margin % Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Tierra Agrotech's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Tierra Agrotech's Gross Margin % falls into.


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Tierra Agrotech Gross Margin % Calculation

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

Tierra Agrotech'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 )
=231.2 / 671.437
=(Revenue - Cost of Goods Sold) / Revenue
=(671.437 - 440.244) / 671.437
=34.43 %

Tierra Agrotech'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 )
=-9.4 / 47.883
=(Revenue - Cost of Goods Sold) / Revenue
=(47.883 - 57.293) / 47.883
=-19.65 %

* 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.


Tierra Agrotech  (BOM:543531) 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

Tierra Agrotech had a gross margin of -19.65% for the quarter that ended in Dec. 2024 => No sustainable 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.


Tierra Agrotech Gross Margin % Related Terms

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


Tierra Agrotech Business Description

Traded in Other Exchanges
N/A
Address
Road No. 2, Banjara Hills, Kamalapuri Colony Lane, 1st Floor, Sravana Complex, Next to L V Prasad Hospital, Hyderabad, TG, IND, 500034
Tierra Agrotech Ltd is engaged in the research, development, production, processing, and commercialization of superior products in crops like Cotton, Maize, Paddy, Rice, Corn, Mustard, Tomato, and Okra. The company is engaged in the Production and trading of Agricultural seeds.

Tierra Agrotech Headlines

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