Bihar Sponge Iron's gross profit for the
three
months ended in Dec. 2024 was ₹42 Mil. Bihar Sponge Iron's gross profit for the trailing twelve months (TTM) ended in Dec. 2024 was ₹216 Mil.
Bihar Sponge Iron had a gross margin of 7.80% for the quarter that ended in Dec. 2024 => No sustainable competitive advantage
During the past 13 years, the highestGross Margin % of Bihar Sponge Iron was 42.16%. The lowest was -700.00%. And the median was 9.73%.
Bihar Sponge Iron Gross Profit Historical Data
The historical data trend for Bihar Sponge Iron's Gross Profit 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.
Competitive Comparison of Bihar Sponge Iron's Gross Profit
For the Steel subindustry, Bihar Sponge Iron's Gross Profit, along with its competitors' market caps and Gross Profit 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.
Bihar Sponge Iron's Gross Profit Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, Bihar Sponge Iron's Gross Profit distribution charts can be found below:
* The bar in red indicates where Bihar Sponge Iron's Gross Profit falls into.
Gross Profit for the trailing twelve months (TTM) ended in Dec. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was ₹216 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* 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.
Bihar Sponge Iron (BOM:500058) Gross Profit 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
Bihar Sponge Iron had a gross margin of 7.80% for the quarter that ended in Dec. 2024 => No sustainable competitive advantage
Bihar Sponge Iron Gross Profit Related Terms
Thank you for viewing the detailed overview of Bihar Sponge Iron's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
Bihar Sponge Iron Ltd is engaged in manufacturing and selling of sponge iron. It is involved in manufacturing, producing, purchasing, exporting, selling and dealing with the pre-reduced form of iron, including sponge iron. It produces sponge iron from coal and iron ore. The company's primary product, sponge iron, is a pre-reduced ferrous material, which is used in the place of steel scrap by secondary steel producers operating induction and electric arc furnaces in the construction and infrastructure sectors.
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