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Escorts Kubota (BOM:500495) Gross Margin % : 31.96% (As of Mar. 2024)


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What is Escorts Kubota Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Escorts Kubota's Gross Profit for the three months ended in Mar. 2024 was ₹6,691 Mil. Escorts Kubota's Revenue for the three months ended in Mar. 2024 was ₹20,935 Mil. Therefore, Escorts Kubota's Gross Margin % for the quarter that ended in Mar. 2024 was 31.96%.


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

BOM:500495' s Gross Margin % Range Over the Past 10 Years
Min: 27.36   Med: 29.8   Max: 31.4
Current: 31.22


During the past 13 years, the highest Gross Margin % of Escorts Kubota was 31.40%. The lowest was 27.36%. And the median was 29.80%.

BOM:500495's Gross Margin % is ranked better than
65.05% of 206 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 24.36 vs BOM:500495: 31.22

Escorts Kubota had a gross margin of 31.96% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Escorts Kubota was -0.60% per year.


Escorts Kubota Gross Margin % Historical Data

The historical data trend for Escorts Kubota'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.

Escorts Kubota Gross Margin % Chart

Escorts Kubota 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 31.36 31.40 28.51 27.36 31.21

Escorts Kubota Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 28.41 30.17 32.25 30.68 31.96

Competitive Comparison of Escorts Kubota's Gross Margin %

For the Farm & Heavy Construction Machinery subindustry, Escorts Kubota'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.


Escorts Kubota's Gross Margin % Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Escorts Kubota's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Escorts Kubota's Gross Margin % falls into.



Escorts Kubota Gross Margin % Calculation

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

Escorts Kubota'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 )
=27624 / 88496.2
=(Revenue - Cost of Goods Sold) / Revenue
=(88496.2 - 60872.2) / 88496.2
=31.21 %

Escorts Kubota's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=6691.2 / 20935.3
=(Revenue - Cost of Goods Sold) / Revenue
=(20935.3 - 14244.1) / 20935.3
=31.96 %

* 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.


Escorts Kubota  (BOM:500495) 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

Escorts Kubota had a gross margin of 31.96% for the quarter that ended in Mar. 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.


Escorts Kubota Gross Margin % Related Terms

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Escorts Kubota (BOM:500495) Business Description

Traded in Other Exchanges
Address
15/5, Mathura Road, Faridabad, HR, IND, 121 003
Escorts Kubota Ltd is an Indian company manufacturing agricultural tractors and construction equipment. It manufactures engines for agricultural tractors, earth moving and material handling equipment, round and flat tubes, heating elements, and other machines. The company's operating segments include Agri machinery products, Construction equipment, Railway equipment, and Others. It generates maximum revenue from the Agri machinery products segment. Geographically, it derives a majority of its revenue from India. The company also trades in oils and lubricants, compressor accessories and spares, and others.

Escorts Kubota (BOM:500495) Headlines

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