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Ugro Capital (NSE:UGROCAP) Gross Margin % : 10.10% (As of Mar. 2024)


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What is Ugro Capital Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Ugro Capital's Gross Profit for the three months ended in Mar. 2024 was ₹202 Mil. Ugro Capital's Revenue for the three months ended in Mar. 2024 was ₹1,997 Mil. Therefore, Ugro Capital's Gross Margin % for the quarter that ended in Mar. 2024 was 10.10%.

Warning Sign:

Ugro Capital Ltd gross margin has been in long-term decline. The average rate of decline per year is -15.8%.


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

NSE:UGROCAP' s Gross Margin % Range Over the Past 10 Years
Min: 13.61   Med: 30.91   Max: 96.04
Current: 15.21


During the past 13 years, the highest Gross Margin % of Ugro Capital was 96.04%. The lowest was 13.61%. And the median was 30.91%.

NSE:UGROCAP's Gross Margin % is ranked worse than
88.58% of 359 companies
in the Credit Services industry
Industry Median: 54.12 vs NSE:UGROCAP: 15.21

Ugro Capital had a gross margin of 10.10% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Ugro Capital was -15.80% per year.


Ugro Capital Gross Margin % Historical Data

The historical data trend for Ugro Capital'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.

Ugro Capital Gross Margin % Chart

Ugro Capital 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 38.69 36.88 23.28 13.61 15.32

Ugro Capital Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Dec23 Mar24
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 12.09 10.97 23.50 13.19 10.10

Competitive Comparison of Ugro Capital's Gross Margin %

For the Credit Services subindustry, Ugro Capital'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.


Ugro Capital's Gross Margin % Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Ugro Capital's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Ugro Capital's Gross Margin % falls into.



Ugro Capital Gross Margin % Calculation

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

Ugro Capital'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 )
=1132.4 / 7390.2
=(Revenue - Cost of Goods Sold) / Revenue
=(7390.2 - 6257.781) / 7390.2
=15.32 %

Ugro Capital'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 )
=201.7 / 1997.187
=(Revenue - Cost of Goods Sold) / Revenue
=(1997.187 - 1795.53) / 1997.187
=10.10 %

* 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.


Ugro Capital  (NSE:UGROCAP) 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

Ugro Capital had a gross margin of 10.10% for the quarter that ended in Mar. 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.


Ugro Capital Gross Margin % Related Terms

Thank you for viewing the detailed overview of Ugro Capital's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Ugro Capital (NSE:UGROCAP) Business Description

Traded in Other Exchanges
Address
Lal Bahadur Shastri Road, Equinox Business Park, 4th Floor, Tower 3, Kurla (West), Mumbai, MH, IND, 400070
Ugro Capital Ltd is engaged in the business of lending and mainly deals in financing small and medium enterprise clients with a focus on Healthcare, Education, Chemicals, Food Processing/FMCG, Hospitality, Electrical Equipment and Components, Auto Components, and Light Engineering segments.

Ugro Capital (NSE:UGROCAP) Headlines

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