Divgi TorqTransfer Systems (BOM:543812) Gross Margin % : 54.95% (As of Dec. 2023)

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What is Divgi TorqTransfer Systems Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Divgi TorqTransfer Systems's Gross Profit for the three months ended in Dec. 2023 was ₹346 Mil. Divgi TorqTransfer Systems's Revenue for the three months ended in Dec. 2023 was ₹630 Mil. Therefore, Divgi TorqTransfer Systems's Gross Margin % for the quarter that ended in Dec. 2023 was 54.95%.

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

BOM:543812' s Gross Margin % Range Over the Past 10 Years
Min: 54.03 Med: 56.72 Max: 59.41
Current: 54.03

During the past 4 years, the highest Gross Margin % of Divgi TorqTransfer Systems was 59.41%. The lowest was 54.03%. And the median was 56.72%.

BOM:543812's Gross Margin % is ranked better than
96.85% of 1268 companies
in the Vehicles & Parts industry
Industry Median: 19.545 vs BOM:543812: 54.03

Divgi TorqTransfer Systems had a gross margin of 54.95% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Divgi TorqTransfer Systems was 0.00% per year.

Divgi TorqTransfer Systems Gross Margin % Historical Data

The historical data trend for Divgi TorqTransfer Systems'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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Divgi TorqTransfer Systems Gross Margin % Chart

Divgi TorqTransfer Systems Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

Gross Margin %

58.06

59.41

55.38

55.13

Divgi TorqTransfer Systems Quarterly Data
	Mar20	Mar21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial					60.41	43.04	61.01	58.56	54.95

Competitive Comparison of Divgi TorqTransfer Systems's Gross Margin %

For the Auto Parts subindustry, Divgi TorqTransfer Systems'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.

Divgi TorqTransfer Systems's Gross Margin % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Divgi TorqTransfer Systems's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Divgi TorqTransfer Systems's Gross Margin % falls into.

Divgi TorqTransfer Systems Gross Margin % Calculation

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

Divgi TorqTransfer Systems'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 )
	=	1472.9	/	2671.49
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2671.49 - 1198.6)	/	2671.49
	=	55.13 %

Divgi TorqTransfer Systems'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 )
	=	346.5	/	630.49
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(630.49 - 284.01)	/	630.49
	=	54.95 %

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.

Divgi TorqTransfer Systems (BOM:543812) 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

Divgi TorqTransfer Systems had a gross margin of 54.95% for the quarter that ended in Dec. 2023 => 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.

Divgi TorqTransfer Systems Gross Margin % Related Terms

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Divgi TorqTransfer Systems (BOM:543812) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Divgi TorqTransfer Systems Ltd (BOM:543812) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

DIVGIITTS:India

Address

MIDC, Bhosari, Plot No. 75, General Block, Pune, MH, IND, 411026

Website

https://www.divgi-tts.com

Divgi TorqTransfer Systems Ltd is engaged in the business as an automotive component entity. It develops and provides system level transfer case, torque coupler and dual clutch automatic transmissions solutions. The Company operates only in one business segment viz. Auto Components and Parts. The secondary segment is based on geographical demarcation, i.e. domestic and exports.

Divgi TorqTransfer Systems (BOM:543812) Headlines

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