Prakash Pipes (NSE:PPL) Gross Margin % : 34.90% (As of Dec. 2023)

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What is Prakash Pipes Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Prakash Pipes's Gross Profit for the three months ended in Dec. 2023 was ₹552 Mil. Prakash Pipes's Revenue for the three months ended in Dec. 2023 was ₹1,582 Mil. Therefore, Prakash Pipes's Gross Margin % for the quarter that ended in Dec. 2023 was 34.90%.

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

NSE:PPL' s Gross Margin % Range Over the Past 10 Years
Min: 23.11 Med: 24.07 Max: 29.88
Current: 29.88

During the past 6 years, the highest Gross Margin % of Prakash Pipes was 29.88%. The lowest was 23.11%. And the median was 24.07%.

NSE:PPL's Gross Margin % is ranked better than
69.25% of 1610 companies
in the Construction industry
Industry Median: 19.17 vs NSE:PPL: 29.88

Prakash Pipes had a gross margin of 34.90% for the quarter that ended in Dec. 2023 => Competition eroding margins

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

Prakash Pipes Gross Margin % Historical Data

The historical data trend for Prakash Pipes'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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Prakash Pipes Gross Margin % Chart

Prakash Pipes Annual Data

Trend

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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23.11

23.98

25.49

24.07

24.95

Prakash Pipes Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															26.26	27.69	28.17	28.99	34.90

Competitive Comparison of Prakash Pipes's Gross Margin %

For the Building Products & Equipment subindustry, Prakash Pipes'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.

Prakash Pipes's Gross Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Prakash Pipes's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Prakash Pipes's Gross Margin % falls into.

Prakash Pipes Gross Margin % Calculation

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

Prakash Pipes'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 )
	=	1769.2	/	7092.1
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(7092.1 - 5322.9)	/	7092.1
	=	24.95 %

Prakash Pipes's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	552.2	/	1582.2
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1582.2 - 1030)	/	1582.2
	=	34.90 %

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.

Prakash Pipes (NSE:PPL) 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

Prakash Pipes had a gross margin of 34.90% for the quarter that ended in Dec. 2023 => 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.

Prakash Pipes Gross Margin % Related Terms

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Prakash Pipes (NSE:PPL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Prakash Pipes Ltd (NSE:PPL) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

542684:India

Address

Srivan, Bijwasan, New Delhi, IND, 110061

Website

https://www.prakashplastics.in

Prakash Pipes Ltd is engaged in the manufacture of PVC pipes and fittings. It offers a products such as Agri Pipes, Column Pipes, Plumbing Pipes, Casing Pipes, SWR Pipes, Garden Pipes and their related Fittings. Its segments are PVC Pipe and fitting and Flexible Packaging. It generates the majority of its revenue from PVC Pipe and fitting.