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Kundan Edifice (NSE:KEL) Gross Margin % : 24.53% (As of Mar. 2024)


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What is Kundan Edifice Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Kundan Edifice's Gross Profit for the six months ended in Mar. 2024 was ₹205.8 Mil. Kundan Edifice's Revenue for the six months ended in Mar. 2024 was ₹839.0 Mil. Therefore, Kundan Edifice's Gross Margin % for the quarter that ended in Mar. 2024 was 24.53%.


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

NSE:KEL' s Gross Margin % Range Over the Past 10 Years
Min: 20.49   Med: 26.69   Max: 28.05
Current: 24.53


During the past 3 years, the highest Gross Margin % of Kundan Edifice was 28.05%. The lowest was 20.49%. And the median was 26.69%.

NSE:KEL's Gross Margin % is ranked worse than
50.58% of 2424 companies
in the Hardware industry
Industry Median: 24.735 vs NSE:KEL: 24.53

Kundan Edifice had a gross margin of 24.53% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Kundan Edifice was 0.00% per year.


Kundan Edifice Gross Margin % Historical Data

The historical data trend for Kundan Edifice'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.

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Kundan Edifice Gross Margin % Chart

Kundan Edifice Annual Data
Trend Mar21 Mar22 Mar23
Gross Margin %
26.69 20.49 28.05

Kundan Edifice Semi-Annual Data
Mar21 Mar22 Mar23 Mar24
Gross Margin % 26.69 20.49 28.05 24.53

Competitive Comparison of Kundan Edifice's Gross Margin %

For the Electronic Components subindustry, Kundan Edifice'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.


Kundan Edifice's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Kundan Edifice's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Kundan Edifice's Gross Margin % falls into.



Kundan Edifice Gross Margin % Calculation

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

Kundan Edifice'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 )
=168.2 / 599.62
=(Revenue - Cost of Goods Sold) / Revenue
=(599.62 - 431.403) / 599.62
=28.05 %

Kundan Edifice'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 )
=205.8 / 839.027
=(Revenue - Cost of Goods Sold) / Revenue
=(839.027 - 633.205) / 839.027
=24.53 %

* 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.


Kundan Edifice  (NSE:KEL) 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

Kundan Edifice had a gross margin of 24.53% 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.


Kundan Edifice Gross Margin % Related Terms

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Kundan Edifice Business Description

Traded in Other Exchanges
N/A
Address
Gala A/ B, Ganesh Industrial Estate, behind Burma Shell Petrol Pump, Vasai East, Palghar, MH, IND, 401208
Kundan Edifice Ltd is a Company engaged in manufacturing, assembly and sale of light emitting diode (LED) strip lights. They provide lighting solutions to some of the key electrical and electronic manufacturing brands in India. The Company has one reportable segment which is business of Manufacture & Selling LED Strip Lights.

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