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Vardhman Acrylics (NSE:VARDHACRLC) Gross Margin % : 23.82% (As of Dec. 2024)


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What is Vardhman Acrylics Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Vardhman Acrylics's Gross Profit for the three months ended in Dec. 2024 was ₹195 Mil. Vardhman Acrylics's Revenue for the three months ended in Dec. 2024 was ₹818 Mil. Therefore, Vardhman Acrylics's Gross Margin % for the quarter that ended in Dec. 2024 was 23.82%.


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

NSE:VARDHACRLC' s Gross Margin % Range Over the Past 10 Years
Min: 18.97   Med: 27.7   Max: 38.62
Current: 29.63


During the past 13 years, the highest Gross Margin % of Vardhman Acrylics was 38.62%. The lowest was 18.97%. And the median was 27.70%.

NSE:VARDHACRLC's Gross Margin % is ranked better than
56.72% of 1019 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 25.27 vs NSE:VARDHACRLC: 29.63

Vardhman Acrylics had a gross margin of 23.82% for the quarter that ended in Dec. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Vardhman Acrylics was 5.40% per year.


Vardhman Acrylics Gross Margin % Historical Data

The historical data trend for Vardhman Acrylics'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.

Vardhman Acrylics Gross Margin % Chart

Vardhman Acrylics 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 27.34 38.62 22.68 32.32 33.47

Vardhman Acrylics Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 41.49 31.63 35.48 29.71 23.82

Competitive Comparison of Vardhman Acrylics's Gross Margin %

For the Textile Manufacturing subindustry, Vardhman Acrylics'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.


Vardhman Acrylics's Gross Margin % Distribution in the Manufacturing - Apparel & Accessories Industry

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

* The bar in red indicates where Vardhman Acrylics's Gross Margin % falls into.


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Vardhman Acrylics Gross Margin % Calculation

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

Vardhman Acrylics'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 )
=993.6 / 2968.53
=(Revenue - Cost of Goods Sold) / Revenue
=(2968.53 - 1974.934) / 2968.53
=33.47 %

Vardhman Acrylics's Gross Margin for the quarter that ended in Dec. 2024 is calculated as


Gross Margin % (Q: Dec. 2024 )=Gross Profit (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=194.8 / 817.8
=(Revenue - Cost of Goods Sold) / Revenue
=(817.8 - 623) / 817.8
=23.82 %

* 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.


Vardhman Acrylics  (NSE:VARDHACRLC) 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

Vardhman Acrylics had a gross margin of 23.82% for the quarter that ended in Dec. 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.


Vardhman Acrylics Gross Margin % Related Terms

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Vardhman Acrylics Business Description

Traded in Other Exchanges
N/A
Address
Chandigarh Road, Vardhman Premises, Ludhiana, PB, IND, 141010
Vardhman Acrylics Ltd is engaged in manufacturing man-made fibers. The firm operates through the Acrylic Fibre and Tow segment having its manufacturing facility in Gujarat, India. Its products are widely used for the manufacture of winter wear such as sweaters, woolen fabric, technical textiles such as non-wovens and carpets, and others. Geographically, it generates the majority of its revenue within India.

Vardhman Acrylics Headlines

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