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Bharat Gears (NSE:BHARATGEAR) Gross Margin % : 49.08% (As of Sep. 2024)


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What is Bharat Gears Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Bharat Gears's Gross Profit for the three months ended in Sep. 2024 was ₹808 Mil. Bharat Gears's Revenue for the three months ended in Sep. 2024 was ₹1,646 Mil. Therefore, Bharat Gears's Gross Margin % for the quarter that ended in Sep. 2024 was 49.08%.

Warning Sign:

Bharat Gears Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.4%.


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

NSE:BHARATGEAR' s Gross Margin % Range Over the Past 10 Years
Min: 36.57   Med: 42.78   Max: 52.6
Current: 36.8


During the past 13 years, the highest Gross Margin % of Bharat Gears was 52.60%. The lowest was 36.57%. And the median was 42.78%.

NSE:BHARATGEAR's Gross Margin % is ranked better than
84.28% of 1279 companies
in the Vehicles & Parts industry
Industry Median: 20.04 vs NSE:BHARATGEAR: 36.80

Bharat Gears had a gross margin of 49.08% for the quarter that ended in Sep. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Bharat Gears was -3.40% per year.


Bharat Gears Gross Margin % Historical Data

The historical data trend for Bharat Gears'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.

Bharat Gears Gross Margin % Chart

Bharat Gears 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 39.99 41.32 39.94 37.35 36.57

Bharat Gears 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 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 46.19 46.80 3.14 46.99 49.08

Competitive Comparison of Bharat Gears's Gross Margin %

For the Auto Parts subindustry, Bharat Gears'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.


Bharat Gears's Gross Margin % Distribution in the Vehicles & Parts Industry

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

* The bar in red indicates where Bharat Gears's Gross Margin % falls into.



Bharat Gears Gross Margin % Calculation

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

Bharat Gears'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 )
=2358.2 / 6449.011
=(Revenue - Cost of Goods Sold) / Revenue
=(6449.011 - 4090.78) / 6449.011
=36.57 %

Bharat Gears'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 )
=807.7 / 1645.8
=(Revenue - Cost of Goods Sold) / Revenue
=(1645.8 - 838.1) / 1645.8
=49.08 %

* 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.


Bharat Gears  (NSE:BHARATGEAR) 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

Bharat Gears had a gross margin of 49.08% for the quarter that ended in Sep. 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.


Bharat Gears Gross Margin % Related Terms

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


Bharat Gears Business Description

Traded in Other Exchanges
Address
14th Floor, Hoechst House, Nariman Point, Mumbai, MH, IND, 400021
Bharat Gears Ltd is engaged in the automotive gears business. The company offers a wide range of gear products such as ring gears and pinions, transmission gears and shafts, differential gears, gearboxes and heat treatment furnaces. The company caters to the commercial vehicle, agricultural machinery, construction equipment segments and other. It has a presence in India and USA, Mexico, Spain, and Other countries.

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