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Atul Auto (NSE:ATULAUTO) Gross Margin % : 26.67% (As of Dec. 2023)


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What is Atul Auto Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Atul Auto's Gross Profit for the three months ended in Dec. 2023 was ₹404 Mil. Atul Auto's Revenue for the three months ended in Dec. 2023 was ₹1,514 Mil. Therefore, Atul Auto's Gross Margin % for the quarter that ended in Dec. 2023 was 26.67%.

Warning Sign:

Atul Auto Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.6%.


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

NSE:ATULAUTO' s Gross Margin % Range Over the Past 10 Years
Min: 17.59   Med: 25.97   Max: 29.08
Current: 29.08


During the past 13 years, the highest Gross Margin % of Atul Auto was 29.08%. The lowest was 17.59%. And the median was 25.97%.

NSE:ATULAUTO's Gross Margin % is ranked better than
74.53% of 1268 companies
in the Vehicles & Parts industry
Industry Median: 19.545 vs NSE:ATULAUTO: 29.08

Atul Auto had a gross margin of 26.67% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Atul Auto was -2.60% per year.


Atul Auto Gross Margin % Historical Data

The historical data trend for Atul Auto'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.

Atul Auto Gross Margin % Chart

Atul Auto Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.16 26.98 17.59 21.61 26.78

Atul Auto 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 27.54 28.20 33.33 30.74 26.67

Competitive Comparison of Atul Auto's Gross Margin %

For the Auto Manufacturers subindustry, Atul Auto'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.


Atul Auto's Gross Margin % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Atul Auto's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Atul Auto's Gross Margin % falls into.



Atul Auto Gross Margin % Calculation

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

Atul Auto's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )=Gross Profit (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=1351.4 / 5046
=(Revenue - Cost of Goods Sold) / Revenue
=(5046 - 3694.6) / 5046
=26.78 %

Atul Auto'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 )
=403.7 / 1513.7
=(Revenue - Cost of Goods Sold) / Revenue
=(1513.7 - 1110) / 1513.7
=26.67 %

* 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.


Atul Auto  (NSE:ATULAUTO) 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

Atul Auto had a gross margin of 26.67% for the quarter that ended in Dec. 2023 => 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.


Atul Auto Gross Margin % Related Terms

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


Atul Auto (NSE:ATULAUTO) Business Description

Traded in Other Exchanges
Address
National Highway 8-B, Survey No. 86, Near Microwave Tower, Plot No. 1 - 4, Shapar (Veraval), Rajkot District, Rajkot, GJ, IND, 360024
Atul Auto Ltd is an Indian-based automobile manufacturing company. It manufactures and sells three-wheeled commercial automobiles in the domestic and overseas markets. The product portfolio of the company includes Atul Shakti, Atul Gem, Atul Smart, Atul Gemini, Atul RIK, and Atul Elite. The company has a presence in India as well as exports its products internationally. The majority of the revenue is earned from the domestic market. It operates in the following segment namely Automotive Vehicles and Parts and Non-Banking Financial Business.

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