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Welspun Enterprises (NSE:WELENT) Gross Margin % : 30.87% (As of Sep. 2024)


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What is Welspun Enterprises Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Welspun Enterprises's Gross Profit for the three months ended in Sep. 2024 was ₹2,435 Mil. Welspun Enterprises's Revenue for the three months ended in Sep. 2024 was ₹7,885 Mil. Therefore, Welspun Enterprises's Gross Margin % for the quarter that ended in Sep. 2024 was 30.87%.


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

NSE:WELENT' s Gross Margin % Range Over the Past 10 Years
Min: 17.16   Med: 20.5   Max: 30.99
Current: 30.25


During the past 13 years, the highest Gross Margin % of Welspun Enterprises was 30.99%. The lowest was 17.16%. And the median was 20.50%.

NSE:WELENT's Gross Margin % is ranked better than
69.35% of 1664 companies
in the Construction industry
Industry Median: 20.015 vs NSE:WELENT: 30.25

Welspun Enterprises had a gross margin of 30.87% for the quarter that ended in Sep. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Welspun Enterprises was 8.30% per year.


Welspun Enterprises Gross Margin % Historical Data

The historical data trend for Welspun Enterprises'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.

Welspun Enterprises Gross Margin % Chart

Welspun Enterprises 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 20.45 25.74 28.61 21.72 30.99

Welspun Enterprises 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 33.12 35.12 27.29 28.44 30.87

Competitive Comparison of Welspun Enterprises's Gross Margin %

For the Engineering & Construction subindustry, Welspun Enterprises'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.


Welspun Enterprises's Gross Margin % Distribution in the Construction Industry

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

* The bar in red indicates where Welspun Enterprises's Gross Margin % falls into.



Welspun Enterprises Gross Margin % Calculation

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

Welspun Enterprises'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 )
=8760.3 / 28268.2
=(Revenue - Cost of Goods Sold) / Revenue
=(28268.2 - 19507.9) / 28268.2
=30.99 %

Welspun Enterprises'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 )
=2434.5 / 7885.1
=(Revenue - Cost of Goods Sold) / Revenue
=(7885.1 - 5450.6) / 7885.1
=30.87 %

* 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.


Welspun Enterprises  (NSE:WELENT) 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

Welspun Enterprises had a gross margin of 30.87% 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.


Welspun Enterprises Gross Margin % Related Terms

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Welspun Enterprises Business Description

Traded in Other Exchanges
Address
Senapati Bapat Marg, Welspun House, Kamala Mills Compound, Lower Parel (West), Mumbai, MH, IND, 400 013
Welspun Enterprises Ltd is an India based company, engaged in the infrastructure (road and water) business. Through its subsidiaries, the company operates through the segments of Infrastructure and Oil and Gas. The company has developed and operates public-private partnership (PPP) projects in various sectors, such as roads, water, and urban infrastructure. The firm generates maximum revenue from the Infrastructure segment which involves undertaking of road construction and water supply projects.

Welspun Enterprises Headlines

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