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Subam Papers (BOM:544267) Gross Margin % : 23.36% (As of Mar. 2024)


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What is Subam Papers Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Subam Papers's Gross Profit for the six months ended in Mar. 2024 was ₹1,142 Mil. Subam Papers's Revenue for the six months ended in Mar. 2024 was ₹4,889 Mil. Therefore, Subam Papers's Gross Margin % for the quarter that ended in Mar. 2024 was 23.36%.


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

BOM:544267' s Gross Margin % Range Over the Past 10 Years
Min: 15.03   Med: 21.71   Max: 23.36
Current: 23.36


During the past 3 years, the highest Gross Margin % of Subam Papers was 23.36%. The lowest was 15.03%. And the median was 21.71%.

BOM:544267's Gross Margin % is ranked better than
59.57% of 277 companies
in the Forest Products industry
Industry Median: 18.52 vs BOM:544267: 23.36

Subam Papers had a gross margin of 23.36% for the quarter that ended in Mar. 2024 => Competition eroding margins

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


Subam Papers Gross Margin % Historical Data

The historical data trend for Subam Papers'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.

Subam Papers Gross Margin % Chart

Subam Papers Annual Data
Trend Mar22 Mar23 Mar24
Gross Margin %
21.71 15.03 23.36

Subam Papers Semi-Annual Data
Mar22 Mar23 Mar24
Gross Margin % 21.71 15.03 23.36

Competitive Comparison of Subam Papers's Gross Margin %

For the Paper & Paper Products subindustry, Subam Papers'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.


Subam Papers's Gross Margin % Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Subam Papers's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Subam Papers's Gross Margin % falls into.


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Subam Papers Gross Margin % Calculation

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

Subam Papers'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 )
=1141.9 / 4888.504
=(Revenue - Cost of Goods Sold) / Revenue
=(4888.504 - 3746.59) / 4888.504
=23.36 %

Subam Papers'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 )
=1141.9 / 4888.504
=(Revenue - Cost of Goods Sold) / Revenue
=(4888.504 - 3746.59) / 4888.504
=23.36 %

* 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.


Subam Papers  (BOM:544267) 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

Subam Papers had a gross margin of 23.36% 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.


Subam Papers Gross Margin % Related Terms

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


Subam Papers Business Description

Traded in Other Exchanges
N/A
Address
S.F. No. 143-146 Vaduganpatti Village, Nadukallur to Tirunelveli, Tirunelveli Taluk, Tirunelveli, TN, IND, 627010
Subam Papers Ltd is engaged in the manufacturing, sale, and distribution of Kraft Paper and Paper Products. The company does not manufacture its products from wood pulp but instead, it uses waste paper as its raw material. Its products include Kraft Paper, Paper Cones & Tubes, Duplex Boards, and Corrugated Boxes. Geographically, it derives a majority of its revenue through domestic sales and also exports its products to other countries.

Subam Papers Headlines

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