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GPH Ispat (DHA:GPHISPAT) Gross Margin % : 13.15% (As of Dec. 2023)


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What is GPH Ispat Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. GPH Ispat's Gross Profit for the three months ended in Dec. 2023 was BDT2,204 Mil. GPH Ispat's Revenue for the three months ended in Dec. 2023 was BDT16,758 Mil. Therefore, GPH Ispat's Gross Margin % for the quarter that ended in Dec. 2023 was 13.15%.

Warning Sign:

GPH Ispat Ltd gross margin has been in long-term decline. The average rate of decline per year is -4.2%.


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

DHA:GPHISPAT' s Gross Margin % Range Over the Past 10 Years
Min: 13.56   Med: 16.27   Max: 18.89
Current: 14.91


During the past 10 years, the highest Gross Margin % of GPH Ispat was 18.89%. The lowest was 13.56%. And the median was 16.27%.

DHA:GPHISPAT's Gross Margin % is ranked better than
56.24% of 585 companies
in the Steel industry
Industry Median: 13.01 vs DHA:GPHISPAT: 14.91

GPH Ispat had a gross margin of 13.15% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for GPH Ispat was -4.20% per year.


GPH Ispat Gross Margin % Historical Data

The historical data trend for GPH Ispat'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.

GPH Ispat Gross Margin % Chart

GPH Ispat Annual Data
Trend Apr13 Apr14 Apr15 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.26 16.52 14.92 13.56 13.81

GPH Ispat Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 10.52 17.51 14.85 13.99 13.15

Competitive Comparison of GPH Ispat's Gross Margin %

For the Steel subindustry, GPH Ispat'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.


GPH Ispat's Gross Margin % Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, GPH Ispat's Gross Margin % distribution charts can be found below:

* The bar in red indicates where GPH Ispat's Gross Margin % falls into.



GPH Ispat Gross Margin % Calculation

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

GPH Ispat's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )=Gross Profit (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=7960.4 / 57656.893
=(Revenue - Cost of Goods Sold) / Revenue
=(57656.893 - 49696.529) / 57656.893
=13.81 %

GPH Ispat'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 )
=2203.7 / 16758.28
=(Revenue - Cost of Goods Sold) / Revenue
=(16758.28 - 14554.536) / 16758.28
=13.15 %

* 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.


GPH Ispat  (DHA:GPHISPAT) 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

GPH Ispat had a gross margin of 13.15% for the quarter that ended in Dec. 2023 => 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.


GPH Ispat Gross Margin % Related Terms

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GPH Ispat (DHA:GPHISPAT) Business Description

Traded in Other Exchanges
N/A
Address
Crown Chamber, 325 Asadgonj, Chattogram, BGD, 4000
GPH Ispat Ltd is engaged in the manufacturing and trading of iron products and steel. It also produces low and medium carbon and low alloy steel billets. The company products include Billet and Rebar which include Deformed bar and Plain bar.

GPH Ispat (DHA:GPHISPAT) Headlines

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