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Madras Fertilizers (NSE:MADRASFERT) Gross Margin % : 42.30% (As of Sep. 2024)


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What is Madras Fertilizers Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Madras Fertilizers's Gross Profit for the three months ended in Sep. 2024 was ₹2,252 Mil. Madras Fertilizers's Revenue for the three months ended in Sep. 2024 was ₹5,324 Mil. Therefore, Madras Fertilizers's Gross Margin % for the quarter that ended in Sep. 2024 was 42.30%.

Warning Sign:

Madras Fertilizers Ltd gross margin has been in long-term decline. The average rate of decline per year is -23.7%.


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

NSE:MADRASFERT' s Gross Margin % Range Over the Past 10 Years
Min: -735.84   Med: -257.92   Max: 17.66
Current: -208.49


During the past 13 years, the highest Gross Margin % of Madras Fertilizers was 17.66%. The lowest was -735.84%. And the median was -257.92%.

NSE:MADRASFERT's Gross Margin % is ranked worse than
100% of 245 companies
in the Agriculture industry
Industry Median: 22.35 vs NSE:MADRASFERT: -208.49

Madras Fertilizers had a gross margin of 42.30% for the quarter that ended in Sep. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Madras Fertilizers was -23.70% per year.


Madras Fertilizers Gross Margin % Historical Data

The historical data trend for Madras Fertilizers'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.

Madras Fertilizers Gross Margin % Chart

Madras Fertilizers 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 -163.58 -147.66 -342.51 -735.84 -576.58

Madras Fertilizers 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 30.81 24.71 144.85 51.11 42.30

Competitive Comparison of Madras Fertilizers's Gross Margin %

For the Agricultural Inputs subindustry, Madras Fertilizers'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.


Madras Fertilizers's Gross Margin % Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Madras Fertilizers's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Madras Fertilizers's Gross Margin % falls into.



Madras Fertilizers Gross Margin % Calculation

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

Madras Fertilizers'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 )
=-14053.1 / 2437.3
=(Revenue - Cost of Goods Sold) / Revenue
=(2437.3 - 16490.4) / 2437.3
=-576.58 %

Madras Fertilizers'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 )
=2252.2 / 5324.2
=(Revenue - Cost of Goods Sold) / Revenue
=(5324.2 - 3072) / 5324.2
=42.30 %

* 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.


Madras Fertilizers  (NSE:MADRASFERT) 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

Madras Fertilizers had a gross margin of 42.30% 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.


Madras Fertilizers Gross Margin % Related Terms

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Madras Fertilizers Business Description

Traded in Other Exchanges
Address
Post Bag No. 2, Manali, Chennai, TN, IND, 600068
Madras Fertilizers Ltd is engaged in the manufacture of ammonia, urea, and complex fertilizers. It is also engaged in manufacturing bio-fertilizers and marketing fertilizers and agrochemicals under the brand name Vijay. The company operates through the manufacture and sale of fertilizers segment. It also provides biofertilizers, including Azospirillum for paddy, plantation crops, and other crops; Rhizobium for groundnuts and pulses; and Phosphor Bacteria and NP Bio for various crops.

Madras Fertilizers Headlines

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