Indraprastha Gas Ltd gross margin has been in long-term decline. The average rate of decline per year is -7.1%.
The historical rank and industry rank for Indraprastha Gas's Gross Margin % or its related term are showing as below:
BOM:532514'
s Gross Margin % Range Over the Past 10 Years
Min: 19.88 Med: 33.07 Max: 43.28
Current: 22.4
During the past 13 years, the highestGross Margin % of Indraprastha Gas was 43.28%. The lowest was 19.88%. And the median was 33.07%.
BOM:532514's Gross Margin % is ranked worse than 61.03% of 503
companies
in the Utilities - Regulated industry
Industry Median: 28.6
vs BOM:532514: 22.40
Indraprastha Gas had a gross margin of 28.41% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Indraprastha Gas was -7.10% per year.
Indraprastha Gas Gross Margin % Historical Data
The historical data trend for Indraprastha Gas'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.
Competitive Comparison of Indraprastha Gas's Gross Margin %
For the Utilities - Regulated Gas subindustry, Indraprastha Gas'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.
Indraprastha Gas's Gross Margin % Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Indraprastha Gas's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Indraprastha Gas's Gross Margin % falls into.
* 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.
Indraprastha Gas (BOM:532514) 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
Indraprastha Gas had a gross margin of 28.41% 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.
Indraprastha Gas Gross Margin % Related Terms
Thank you for viewing the detailed overview of Indraprastha Gas's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Indraprastha Gas (BOM:532514) Business Description
Indraprastha Gas Ltd, or IGL, is an Indian utility company that derives nearly all of its revenue from the sale of natural gas. IGL supplies compressed natural gas (CNG) to the transport sector and piped natural gas (PNG) to domestic, industrial, and commercial sector customers. Most of the natural gas sold by IGL is in the form of compressed natural gas. CNG is an alternative to fossil fuels that is distributed from IGL's portfolio of fueling stations to power a variety of vehicles. The vast majority of these CNG stations are located in the Delhi and National Capital Regions. IGL distributes a significant amount of natural gas through its network of pipelines in Delhi and the National Capital Region, as well. The customers served by IGL's PNG business are primarily residential consumers.
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