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Melewar Industrial Group Bhd (XKLS:3778) Gross Margin % : 6.83% (As of Sep. 2024)


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What is Melewar Industrial Group Bhd Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Melewar Industrial Group Bhd's Gross Profit for the three months ended in Sep. 2024 was RM13.7 Mil. Melewar Industrial Group Bhd's Revenue for the three months ended in Sep. 2024 was RM200.0 Mil. Therefore, Melewar Industrial Group Bhd's Gross Margin % for the quarter that ended in Sep. 2024 was 6.83%.

Warning Sign:

Melewar Industrial Group Bhd gross margin has been in long-term decline. The average rate of decline per year is -4.1%.


The historical rank and industry rank for Melewar Industrial Group Bhd's Gross Margin % or its related term are showing as below:

XKLS:3778' s Gross Margin % Range Over the Past 10 Years
Min: 0.33   Med: 8.94   Max: 16.3
Current: 8.33


During the past 13 years, the highest Gross Margin % of Melewar Industrial Group Bhd was 16.30%. The lowest was 0.33%. And the median was 8.94%.

XKLS:3778's Gross Margin % is ranked worse than
61.83% of 600 companies
in the Steel industry
Industry Median: 11.595 vs XKLS:3778: 8.33

Melewar Industrial Group Bhd had a gross margin of 6.83% for the quarter that ended in Sep. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Melewar Industrial Group Bhd was -4.10% per year.


Melewar Industrial Group Bhd Gross Margin % Historical Data

The historical data trend for Melewar Industrial Group Bhd'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.

Melewar Industrial Group Bhd Gross Margin % Chart

Melewar Industrial Group Bhd Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.18 15.23 16.30 5.96 8.62

Melewar Industrial Group Bhd 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 7.91 6.30 8.78 10.65 6.83

Competitive Comparison of Melewar Industrial Group Bhd's Gross Margin %

For the Steel subindustry, Melewar Industrial Group Bhd'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.


Melewar Industrial Group Bhd's Gross Margin % Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Melewar Industrial Group Bhd's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Melewar Industrial Group Bhd's Gross Margin % falls into.



Melewar Industrial Group Bhd Gross Margin % Calculation

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

Melewar Industrial Group Bhd's Gross Margin for the fiscal year that ended in Jun. 2024 is calculated as

Gross Margin % (A: Jun. 2024 )=Gross Profit (A: Jun. 2024 ) / Revenue (A: Jun. 2024 )
=69.8 / 810.168
=(Revenue - Cost of Goods Sold) / Revenue
=(810.168 - 740.356) / 810.168
=8.62 %

Melewar Industrial Group Bhd'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 )
=13.7 / 200.038
=(Revenue - Cost of Goods Sold) / Revenue
=(200.038 - 186.384) / 200.038
=6.83 %

* 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.


Melewar Industrial Group Bhd  (XKLS:3778) 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

Melewar Industrial Group Bhd had a gross margin of 6.83% for the quarter that ended in Sep. 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.


Melewar Industrial Group Bhd Gross Margin % Related Terms

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


Melewar Industrial Group Bhd Business Description

Traded in Other Exchanges
N/A
Address
No. 566 Jalan Ipoh, 15th Floor, Kuala Lumpur, SGR, MYS, 51200
Melewar Industrial Group Bhd along with its subsidiaries, operates in four reportable segments. The Steel Tube segment is in the business of manufacturing and sales of steel pipes and tubes. The Cold Rolled Coil segment is in the business of manufacturing and sales of cold-rolled coils. The investment holding segment refers to companies with investments in subsidiaries and companies with investments in quoted and unquoted equity securities. Others comprise companies involved in the food, trade-retail business, modular construction, and metal scraps trading businesses. It generates maximum revenue from the Cold rolled coil segment. Geographically, the group derives maximum revenue from Malaysia.

Melewar Industrial Group Bhd Headlines

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