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Nishat Power (KAR:NPL) Gross Margin % : 29.37% (As of Mar. 2024)


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What is Nishat Power Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Nishat Power's Gross Profit for the three months ended in Mar. 2024 was ₨1,430 Mil. Nishat Power's Revenue for the three months ended in Mar. 2024 was ₨4,869 Mil. Therefore, Nishat Power's Gross Margin % for the quarter that ended in Mar. 2024 was 29.37%.

Warning Sign:

Nishat Power Ltd gross margin has been in long-term decline. The average rate of decline per year is -10.2%.


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

KAR:NPL' s Gross Margin % Range Over the Past 10 Years
Min: 16.36   Med: 25.35   Max: 54.08
Current: 21.52


During the past 13 years, the highest Gross Margin % of Nishat Power was 54.08%. The lowest was 16.36%. And the median was 25.35%.

KAR:NPL's Gross Margin % is ranked worse than
69.21% of 393 companies
in the Utilities - Independent Power Producers industry
Industry Median: 35.67 vs KAR:NPL: 21.52

Nishat Power had a gross margin of 29.37% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Nishat Power was -10.20% per year.


Nishat Power Gross Margin % Historical Data

The historical data trend for Nishat Power'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.

Nishat Power Gross Margin % Chart

Nishat Power Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 32.07 54.08 29.99 16.36 19.82

Nishat Power 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 27.68 22.11 14.28 33.52 29.37

Competitive Comparison of Nishat Power's Gross Margin %

For the Utilities - Independent Power Producers subindustry, Nishat Power'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.


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

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

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



Nishat Power Gross Margin % Calculation

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

Nishat Power'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 )
=4573.3 / 23068.964
=(Revenue - Cost of Goods Sold) / Revenue
=(23068.964 - 18495.64) / 23068.964
=19.82 %

Nishat Power'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 )
=1429.8 / 4868.5
=(Revenue - Cost of Goods Sold) / Revenue
=(4868.5 - 3438.735) / 4868.5
=29.37 %

* 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.


Nishat Power  (KAR:NPL) 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

Nishat Power had a gross margin of 29.37% 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.


Nishat Power Gross Margin % Related Terms

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


Nishat Power (KAR:NPL) Business Description

Traded in Other Exchanges
N/A
Address
1-B, Aziz Avenue, Canal Bank, Gulberg-V, Lahore, PB, PAK
Nishat Power Ltd is a company whose principal activity is to build, own, operate and maintain a fuel-fired power plant based on Reciprocating Engine Technology having a gross capacity of 200MW in Jamber Kalan, Tehsil Pattoki, District Kasur, Punjab, Pakistan.

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