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Indian Wood Products Co (BOM:540954) Gross Margin %

: 45.46% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Indian Wood Products Co's Gross Profit for the three months ended in Dec. 2023 was ₹202 Mil. Indian Wood Products Co's Revenue for the three months ended in Dec. 2023 was ₹445 Mil. Therefore, Indian Wood Products Co's Gross Margin % for the quarter that ended in Dec. 2023 was 45.46%.

Warning Sign:

Indian Wood Products Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -6.9%.


The historical rank and industry rank for Indian Wood Products Co's Gross Margin % or its related term are showing as below:

BOM:540954' s Gross Margin % Range Over the Past 10 Years
Min: 22.83   Med: 29.3   Max: 38.45
Current: 29.79


During the past 12 years, the highest Gross Margin % of Indian Wood Products Co was 38.45%. The lowest was 22.83%. And the median was 29.30%.

BOM:540954's Gross Margin % is ranked better than
65.72% of 283 companies
in the Forest Products industry
Industry Median: 19.91 vs BOM:540954: 29.79

Indian Wood Products Co had a gross margin of 45.46% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Indian Wood Products Co was -6.90% per year.


Indian Wood Products Co Gross Margin % Historical Data

The historical data trend for Indian Wood Products Co'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.

Indian Wood Products Co 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 38.45 33.00 29.28 24.52 29.31

Indian Wood Products Co 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 39.79 -1.06 35.24 36.91 45.46

Competitive Comparison

For the Lumber & Wood Production subindustry, Indian Wood Products Co'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.


Indian Wood Products Co Gross Margin % Distribution

For the Forest Products industry and Basic Materials sector, Indian Wood Products Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Indian Wood Products Co's Gross Margin % falls into.



Indian Wood Products Co Gross Margin % Calculation

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

Indian Wood Products Co'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 )
=529.7 / 1807.318
=(Revenue - Cost of Goods Sold) / Revenue
=(1807.318 - 1277.664) / 1807.318
=29.31 %

Indian Wood Products Co'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 )
=202.3 / 444.953
=(Revenue - Cost of Goods Sold) / Revenue
=(444.953 - 242.679) / 444.953
=45.46 %

* 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.


Indian Wood Products Co  (BOM:540954) 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

Indian Wood Products Co had a gross margin of 45.46% for the quarter that ended in Dec. 2023 => Durable 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.


Indian Wood Products Co Gross Margin % Related Terms

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Indian Wood Products Co (BOM:540954) Business Description

Traded in Other Exchanges
N/A
Address
9, Brabourne Road, 7th Floor, Bombay Mutual Building, Kolkata, WB, IND, 700001
Indian Wood Products Co Ltd is engaged in the production, processing, and marketing of Katha and Cutch. The company's products are used as a mouth freshener, medical, and dyeing agent for natural fibers, and are also useful for the treatment of Acute viral hepatitis, and as Anti-diabetic, Anti-inflammatory, Anti-Diarrhoea, Anti-dysentery, Chemo-prevention, and others. It is also traditionally used for the treatment of Gums and Tooth and skin ailments. The company derives a majority of its revenue from the sales of Katha. The group principally operates in India.

Indian Wood Products Co (BOM:540954) Headlines

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