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Reliance Infrastructure (Reliance Infrastructure) Gross Margin % : 35.36% (As of Dec. 2023)


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What is Reliance Infrastructure Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Reliance Infrastructure's Gross Profit for the three months ended in Dec. 2023 was $198 Mil. Reliance Infrastructure's Revenue for the three months ended in Dec. 2023 was $559 Mil. Therefore, Reliance Infrastructure's Gross Margin % for the quarter that ended in Dec. 2023 was 35.36%.

Warning Sign:

Reliance Infrastructure Ltd gross margin has been in long-term decline. The average rate of decline per year is -6.3%.


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

RELFF' s Gross Margin % Range Over the Past 10 Years
Min: 22.49   Med: 26.27   Max: 32.4
Current: 23.79


During the past 13 years, the highest Gross Margin % of Reliance Infrastructure was 32.40%. The lowest was 22.49%. And the median was 26.27%.

RELFF's Gross Margin % is ranked worse than
65.23% of 394 companies
in the Utilities - Independent Power Producers industry
Industry Median: 35.54 vs RELFF: 23.79

Reliance Infrastructure had a gross margin of 35.36% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Reliance Infrastructure was -6.30% per year.


Reliance Infrastructure Gross Margin % Historical Data

The historical data trend for Reliance Infrastructure'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.

Reliance Infrastructure Gross Margin % Chart

Reliance Infrastructure Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 31.54 26.03 24.47 26.50 22.49

Reliance Infrastructure 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 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 32.14 -0.68 21.55 30.95 35.36

Competitive Comparison of Reliance Infrastructure's Gross Margin %

For the Utilities - Independent Power Producers subindustry, Reliance Infrastructure'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.


Reliance Infrastructure's Gross Margin % Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Reliance Infrastructure's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Reliance Infrastructure's Gross Margin % falls into.



Reliance Infrastructure Gross Margin % Calculation

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

Reliance Infrastructure'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 )
=557.6 / 2479.655
=(Revenue - Cost of Goods Sold) / Revenue
=(2479.655 - 1922.091) / 2479.655
=22.49 %

Reliance Infrastructure'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 )
=197.8 / 559.412
=(Revenue - Cost of Goods Sold) / Revenue
=(559.412 - 361.629) / 559.412
=35.36 %

* 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.


Reliance Infrastructure  (OTCPK:RELFF) 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

Reliance Infrastructure had a gross margin of 35.36% 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.


Reliance Infrastructure Gross Margin % Related Terms

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Reliance Infrastructure (Reliance Infrastructure) Business Description

Traded in Other Exchanges
Address
19, Walchand Hirachand Marg, Reliance Centre, Ground Floor, Mumbai, MH, IND, 400001
Reliance Infrastructure Ltd, or RInfra, is an Indian company operating in the country's utilities and infrastructure sectors. The company segments its activities into 'Power', 'Engineering and Construction' (E&C) and 'Infrastructure. Reliance Infrastructure's revenue is derived from electricity sales and transmission charges issued by its Power division. This unit is involved in the generation, transmission, distribution, and trading of energy in India. RInfra's Power Business utilizes thermal power plants that operate on natural gas and coal to then distribute electricity to urban markets, such as Mumbai and Delhi. The company's EPC division also generates substantial income through contracts with entities in India's power and road sectors.

Reliance Infrastructure (Reliance Infrastructure) Headlines

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