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Chatha Foods (BOM:544151) Gross Margin % : 27.02% (As of Sep. 2024)


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What is Chatha Foods Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Chatha Foods's Gross Profit for the six months ended in Sep. 2024 was ₹200 Mil. Chatha Foods's Revenue for the six months ended in Sep. 2024 was ₹738 Mil. Therefore, Chatha Foods's Gross Margin % for the quarter that ended in Sep. 2024 was 27.02%.


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

BOM:544151' s Gross Margin % Range Over the Past 10 Years
Min: 21.5   Med: 26.69   Max: 28.7
Current: 28.47


During the past 4 years, the highest Gross Margin % of Chatha Foods was 28.70%. The lowest was 21.50%. And the median was 26.69%.

BOM:544151's Gross Margin % is ranked better than
55.81% of 1842 companies
in the Consumer Packaged Goods industry
Industry Median: 25.885 vs BOM:544151: 28.47

Chatha Foods had a gross margin of 27.02% for the quarter that ended in Sep. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Chatha Foods was 0.00% per year.


Chatha Foods Gross Margin % Historical Data

The historical data trend for Chatha Foods'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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Chatha Foods Gross Margin % Chart

Chatha Foods Annual Data
Trend Mar21 Mar22 Mar23 Mar24
Gross Margin %
21.50 27.46 25.92 28.70

Chatha Foods Semi-Annual Data
Mar21 Mar22 Mar23 Sep23 Mar24 Sep24
Gross Margin % Get a 7-Day Free Trial - - 27.39 30.17 27.02

Competitive Comparison of Chatha Foods's Gross Margin %

For the Packaged Foods subindustry, Chatha Foods'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.


Chatha Foods's Gross Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Chatha Foods's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Chatha Foods's Gross Margin % falls into.


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Chatha Foods Gross Margin % Calculation

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

Chatha Foods'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 )
=384 / 1337.993
=(Revenue - Cost of Goods Sold) / Revenue
=(1337.993 - 954.021) / 1337.993
=28.70 %

Chatha Foods's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=199.5 / 738.387
=(Revenue - Cost of Goods Sold) / Revenue
=(738.387 - 538.879) / 738.387
=27.02 %

* 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.


Chatha Foods  (BOM:544151) 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

Chatha Foods had a gross margin of 27.02% for the quarter that ended in Sep. 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.


Chatha Foods Gross Margin % Related Terms

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Chatha Foods Business Description

Traded in Other Exchanges
N/A
Address
Chandigarh - Ambala Highway, Village Chaundheri, Post office Dapper, District Mohali, Mohali, PB, IND, 140501
Chatha Foods Ltd is a frozen food processor, serving top QSRs (Quick Serving Restaurants), CDRs (Casual Dining Restaurants), and other players in the HoReCa (Hotel-Restaurant-Catering) segment. Its product portfolio includes three categories: Non-Vegetarian, Vegetarian, and Plant-Based. Non-Vegetarian: Manufactures and sells non-vegetarian products such as pizza toppings, sandwich fillings, burger patties, snacks, and more to QSR's, CDR's, and other HoReCa segment players. Vegetarian: Manufactures and sells vegetarian products such as pizza toppings, sandwich fillings, burger patties, taco fillings. Plant-Based: It manufactures and sells plant-based products such as plant-based sausages, salami, and pepperoni; Indian snacks like kebabs, tikkas & samosas; plant-based nuggets & burger.

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