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Steel Strips Wheels (BOM:513262) Gross Margin % : 35.51% (As of Dec. 2023)


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What is Steel Strips Wheels Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Steel Strips Wheels's Gross Profit for the three months ended in Dec. 2023 was ₹3,943 Mil. Steel Strips Wheels's Revenue for the three months ended in Dec. 2023 was ₹11,103 Mil. Therefore, Steel Strips Wheels's Gross Margin % for the quarter that ended in Dec. 2023 was 35.51%.


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

BOM:513262' s Gross Margin % Range Over the Past 10 Years
Min: 17.21   Med: 27.82   Max: 38.56
Current: 34.86


During the past 13 years, the highest Gross Margin % of Steel Strips Wheels was 38.56%. The lowest was 17.21%. And the median was 27.82%.

BOM:513262's Gross Margin % is ranked better than
83.66% of 1267 companies
in the Vehicles & Parts industry
Industry Median: 19.36 vs BOM:513262: 34.86

Steel Strips Wheels had a gross margin of 35.51% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Steel Strips Wheels was 4.80% per year.


Steel Strips Wheels Gross Margin % Historical Data

The historical data trend for Steel Strips Wheels'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.

Steel Strips Wheels Gross Margin % Chart

Steel Strips Wheels 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 27.55 28.09 26.57 38.56 34.08

Steel Strips Wheels 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 37.12 34.45 35.39 34.09 35.51

Competitive Comparison of Steel Strips Wheels's Gross Margin %

For the Auto Parts subindustry, Steel Strips Wheels'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.


Steel Strips Wheels's Gross Margin % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Steel Strips Wheels's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Steel Strips Wheels's Gross Margin % falls into.



Steel Strips Wheels Gross Margin % Calculation

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

Steel Strips Wheels'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 )
=13769.1 / 40405.449
=(Revenue - Cost of Goods Sold) / Revenue
=(40405.449 - 26636.396) / 40405.449
=34.08 %

Steel Strips Wheels'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 )
=3943.1 / 11103.029
=(Revenue - Cost of Goods Sold) / Revenue
=(11103.029 - 7159.962) / 11103.029
=35.51 %

* 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.


Steel Strips Wheels  (BOM:513262) 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

Steel Strips Wheels had a gross margin of 35.51% 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.


Steel Strips Wheels Gross Margin % Related Terms

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


Steel Strips Wheels (BOM:513262) Business Description

Traded in Other Exchanges
Address
Madhya Marg, SCO 49-50, Sector 26, Chandigarh, IND, 160 019
Steel Strips Wheels Ltd is an India-based automotive steel wheels manufacturing company. It is engaged in the designing and manufacturing business of Steel wheel rims and Alloy wheel rims catering to different segments of the automobile industry. The company operates in India and has a presence in international markets as well. The group generates the majority of its revenue from India.

Steel Strips Wheels (BOM:513262) Headlines

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