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Vallibel Power Erathna (COL:VPEL.N0000) Gross Margin % : 71.45% (As of Mar. 2024)


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What is Vallibel Power Erathna Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Vallibel Power Erathna's Gross Profit for the three months ended in Mar. 2024 was රු118 Mil. Vallibel Power Erathna's Revenue for the three months ended in Mar. 2024 was රු165 Mil. Therefore, Vallibel Power Erathna's Gross Margin % for the quarter that ended in Mar. 2024 was 71.45%.


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

COL:VPEL.N0000' s Gross Margin % Range Over the Past 10 Years
Min: 82.67   Med: 87.14   Max: 88.86
Current: 88.08


During the past 13 years, the highest Gross Margin % of Vallibel Power Erathna was 88.86%. The lowest was 82.67%. And the median was 87.14%.

COL:VPEL.N0000's Gross Margin % is ranked better than
90.91% of 396 companies
in the Utilities - Independent Power Producers industry
Industry Median: 35.46 vs COL:VPEL.N0000: 88.08

Vallibel Power Erathna had a gross margin of 71.45% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Vallibel Power Erathna was 0.00% per year.


Vallibel Power Erathna Gross Margin % Historical Data

The historical data trend for Vallibel Power Erathna'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.

Vallibel Power Erathna Gross Margin % Chart

Vallibel Power Erathna 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 86.13 86.20 88.63 85.64 88.08

Vallibel Power Erathna Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only 58.31 83.21 90.72 92.90 71.45

Competitive Comparison of Vallibel Power Erathna's Gross Margin %

For the Utilities - Independent Power Producers subindustry, Vallibel Power Erathna'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.


Vallibel Power Erathna's Gross Margin % Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Vallibel Power Erathna's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Vallibel Power Erathna's Gross Margin % falls into.



Vallibel Power Erathna Gross Margin % Calculation

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

Vallibel Power Erathna'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 )
=1299.5 / 1475.249
=(Revenue - Cost of Goods Sold) / Revenue
=(1475.249 - 175.791) / 1475.249
=88.08 %

Vallibel Power Erathna'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 )
=117.9 / 164.998
=(Revenue - Cost of Goods Sold) / Revenue
=(164.998 - 47.112) / 164.998
=71.45 %

* 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.


Vallibel Power Erathna  (COL:VPEL.N0000) 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

Vallibel Power Erathna had a gross margin of 71.45% for the quarter that ended in Mar. 2024 => 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.


Vallibel Power Erathna Gross Margin % Related Terms

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


Vallibel Power Erathna (COL:VPEL.N0000) Business Description

Traded in Other Exchanges
N/A
Address
No. 27-02, Echelon Square, East Tower, World Trade Center, Colombo, LKA, 01
Vallibel Power Erathna PLC is engaged in generating and selling of hydroelectric energy to the Ceylon Electricity Board. The company's segments include Erathna MHPP, Denawaka Ganga MHPP, and Kiriwaneliya MHPP. It derives majority of its revenue from the Denawaka Ganga MHPP segment. Denawaka Ganga MHPP project run-of-river mini hydro power project having the install capacity of 7.2 MW. The project is located near Durekkanda, in the Ratnapura Divisional secretariat of the Ratnapura District.

Vallibel Power Erathna (COL:VPEL.N0000) Headlines

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