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Hindustan Foods (NSE:HNDFDS) Gross Margin % : 16.51% (As of Dec. 2024)


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What is Hindustan Foods Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Hindustan Foods's Gross Profit for the three months ended in Dec. 2024 was ₹1,453 Mil. Hindustan Foods's Revenue for the three months ended in Dec. 2024 was ₹8,797 Mil. Therefore, Hindustan Foods's Gross Margin % for the quarter that ended in Dec. 2024 was 16.51%.

Warning Sign:

Hindustan Foods Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.1%.


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

NSE:HNDFDS' s Gross Margin % Range Over the Past 10 Years
Min: 8.58   Med: 12.44   Max: 28.76
Current: 15.45


During the past 13 years, the highest Gross Margin % of Hindustan Foods was 28.76%. The lowest was 8.58%. And the median was 12.44%.

NSE:HNDFDS's Gross Margin % is ranked worse than
73.5% of 532 companies
in the Conglomerates industry
Industry Median: 24.755 vs NSE:HNDFDS: 15.45

Hindustan Foods had a gross margin of 16.51% for the quarter that ended in Dec. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Hindustan Foods was -3.10% per year.


Hindustan Foods Gross Margin % Historical Data

The historical data trend for Hindustan Foods'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.

Hindustan Foods Gross Margin % Chart

Hindustan Foods 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 12.01 10.19 8.58 9.67 12.11

Hindustan Foods Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 12.02 12.48 16.35 15.94 16.51

Competitive Comparison of Hindustan Foods's Gross Margin %

For the Conglomerates subindustry, Hindustan Foods'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.


Hindustan Foods's Gross Margin % Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Hindustan Foods's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Hindustan Foods's Gross Margin % falls into.


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Hindustan Foods Gross Margin % Calculation

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

Hindustan Foods'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 )
=3323.5 / 27452.063
=(Revenue - Cost of Goods Sold) / Revenue
=(27452.063 - 24128.602) / 27452.063
=12.11 %

Hindustan Foods's Gross Margin for the quarter that ended in Dec. 2024 is calculated as


Gross Margin % (Q: Dec. 2024 )=Gross Profit (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=1452.8 / 8797.3
=(Revenue - Cost of Goods Sold) / Revenue
=(8797.3 - 7344.5) / 8797.3
=16.51 %

* 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.


Hindustan Foods  (NSE:HNDFDS) 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

Hindustan Foods had a gross margin of 16.51% for the quarter that ended in Dec. 2024 => 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.


Hindustan Foods Gross Margin % Related Terms

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Hindustan Foods Business Description

Traded in Other Exchanges
Address
15, Lal Bahadur Shastri Road, Office No. 03, Level 2, Centrium, Phoenix Market City, Kurla (West), Mumbai, MH, IND, 400 070
Hindustan Foods Ltd is an India-based company engaged in the business of contract manufacturing of FMCG products comprising primarily of home care, personal care, foods and beverages and job working of shoes. Its operating segment is Contract manufacturing. Geographically the company generates the majority of its revenue from India.

Hindustan Foods Headlines

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