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Lorenzini Apparels (NSE:LAL) Gross Margin % : 34.50% (As of Sep. 2024)


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What is Lorenzini Apparels Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Lorenzini Apparels's Gross Profit for the three months ended in Sep. 2024 was ₹45.0 Mil. Lorenzini Apparels's Revenue for the three months ended in Sep. 2024 was ₹130.5 Mil. Therefore, Lorenzini Apparels's Gross Margin % for the quarter that ended in Sep. 2024 was 34.50%.


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

NSE:LAL' s Gross Margin % Range Over the Past 10 Years
Min: 26.44   Med: 34.79   Max: 47.27
Current: 36.18


During the past 12 years, the highest Gross Margin % of Lorenzini Apparels was 47.27%. The lowest was 26.44%. And the median was 34.79%.

NSE:LAL's Gross Margin % is ranked better than
65.11% of 1026 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 25.67 vs NSE:LAL: 36.18

Lorenzini Apparels had a gross margin of 34.50% for the quarter that ended in Sep. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Lorenzini Apparels was 9.00% per year.


Lorenzini Apparels Gross Margin % Historical Data

The historical data trend for Lorenzini Apparels'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.

Lorenzini Apparels Gross Margin % Chart

Lorenzini Apparels 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 26.44 28.85 47.27 44.35 38.18

Lorenzini Apparels Quarterly Data
Mar17 Jul17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 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 33.70 41.11 44.07 28.33 34.50

Competitive Comparison of Lorenzini Apparels's Gross Margin %

For the Apparel Manufacturing subindustry, Lorenzini Apparels'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.


Lorenzini Apparels's Gross Margin % Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Lorenzini Apparels's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Lorenzini Apparels's Gross Margin % falls into.



Lorenzini Apparels Gross Margin % Calculation

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

Lorenzini Apparels'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 )
=209.1 / 547.592
=(Revenue - Cost of Goods Sold) / Revenue
=(547.592 - 338.515) / 547.592
=38.18 %

Lorenzini Apparels'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 )
=45 / 130.508
=(Revenue - Cost of Goods Sold) / Revenue
=(130.508 - 85.485) / 130.508
=34.50 %

* 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.


Lorenzini Apparels  (NSE:LAL) 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

Lorenzini Apparels had a gross margin of 34.50% 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.


Lorenzini Apparels Gross Margin % Related Terms

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Lorenzini Apparels Business Description

Traded in Other Exchanges
Address
C-64, Okhla Industrial Area Phase - I, South Delhi, New Delhi, IND, 110020
Lorenzini Apparels Ltd is engaged in the business of manufacturing, designing and marketing of readymade garments offering diverse range of formal, semi-formal and casual wear for men and women. It serves customers through the channels of retail and e-commerce. Its garment manufacturing process includes cutting, stitching, sewing, finishing, inspection and packing. It also outsources the garments manufacturing on job work basis from third party contractors from time to time and provides the technical specifications such as designs, pattern, quality, fabric etc. to them who, based on its specifications, procure the requisite raw materials at their own costs and begin the manufacturing process.

Lorenzini Apparels Headlines

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