LTOUF (Larsen & Toubro) Gross Margin % : 33.37% (As of Sep. 2024)

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What is Larsen & Toubro Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Larsen & Toubro's Gross Profit for the three months ended in Sep. 2024 was $2,452 Mil. Larsen & Toubro's Revenue for the three months ended in Sep. 2024 was $7,346 Mil. Therefore, Larsen & Toubro's Gross Margin % for the quarter that ended in Sep. 2024 was 33.37%.

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

LTOUF' s Gross Margin % Range Over the Past 10 Years
Min: 24.88 Med: 31.01 Max: 35.84
Current: 32.74

During the past 13 years, the highest Gross Margin % of Larsen & Toubro was 35.84%. The lowest was 24.88%. And the median was 31.01%.

LTOUF's Gross Margin % is ranked better than
73.92% of 1664 companies
in the Construction industry
Industry Median: 20.05 vs LTOUF: 32.74

Larsen & Toubro had a gross margin of 33.37% for the quarter that ended in Sep. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Larsen & Toubro was 3.30% per year.

Larsen & Toubro Gross Margin % Historical Data

The historical data trend for Larsen & Toubro'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.

Larsen & Toubro Gross Margin % Chart

Larsen & Toubro Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Gross Margin %

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32.53

35.53

35.84

35.81

33.36

Larsen & Toubro Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Gross Margin %	Get a 7-Day Free Trial															36.27	33.48	29.25	35.40	33.37

Competitive Comparison of Larsen & Toubro's Gross Margin %

For the Engineering & Construction subindustry, Larsen & Toubro'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.

Larsen & Toubro's Gross Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Larsen & Toubro's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Larsen & Toubro's Gross Margin % falls into.

Larsen & Toubro Gross Margin % Calculation

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

Larsen & Toubro'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 )
	=	8803.4	/	26392.676
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(26392.676 - 17589.299)	/	26392.676
	=	33.36 %

Larsen & Toubro'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 )
	=	2451.6	/	7346.204
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(7346.204 - 4894.622)	/	7346.204
	=	33.37 %

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.

Larsen & Toubro (OTCPK:LTOUF) 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

Larsen & Toubro had a gross margin of 33.37% 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.

Larsen & Toubro Gross Margin % Related Terms

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Larsen & Toubro Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Larsen & Toubro Ltd (OTCPK:LTOUF) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

LT:India 500510:India LTODl:UK LTOD:UK LTO:Germany

Address

Norottarn Morarjee Marg, L&T House, Ballard Estate, Mumbai, MH, IND, 400001

Website

https://www.larsentoubro.com

Larsen & Toubro Ltd is a technology, engineering, manufacturing, and financial services conglomerate. It enters contracts to construct various facilities, develop solutions for offshore and onshore hydrocarbon projects, serve power plants, build ships, and perform other engineering projects. Its integrated capabilities help customers throughout the entire value chain, from design to delivering a project. The company has several operating segments: Infrastructure projects, Energy projects, Hi-Tech Manufacturing, IT & Technology services, Financial services, Development projects, and other segments. The majority of the company's revenue is generated from its Infrastructure projects segment.