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Baraka Power (DHA:BARKAPOWER) Gross Margin % : 20.93% (As of Dec. 2023)


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What is Baraka Power Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Baraka Power's Gross Profit for the three months ended in Dec. 2023 was BDT128 Mil. Baraka Power's Revenue for the three months ended in Dec. 2023 was BDT609 Mil. Therefore, Baraka Power's Gross Margin % for the quarter that ended in Dec. 2023 was 20.93%.

Warning Sign:

Baraka Power Ltd gross margin has been in long-term decline. The average rate of decline per year is -4.3%.


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

DHA:BARKAPOWER' s Gross Margin % Range Over the Past 10 Years
Min: 19.35   Med: 31.35   Max: 40.09
Current: 19.35


During the past 12 years, the highest Gross Margin % of Baraka Power was 40.09%. The lowest was 19.35%. And the median was 31.35%.

DHA:BARKAPOWER's Gross Margin % is ranked worse than
67.4% of 503 companies
in the Utilities - Regulated industry
Industry Median: 28.6 vs DHA:BARKAPOWER: 19.35

Baraka Power had a gross margin of 20.93% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Baraka Power was -4.30% per year.


Baraka Power Gross Margin % Historical Data

The historical data trend for Baraka Power'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.

Baraka Power Gross Margin % Chart

Baraka Power Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.83 40.09 36.15 26.77 22.55

Baraka Power 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 27.32 21.70 19.12 16.28 20.93

Competitive Comparison of Baraka Power's Gross Margin %

For the Utilities - Regulated Electric subindustry, Baraka Power'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.


Baraka Power's Gross Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Baraka Power's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Baraka Power's Gross Margin % falls into.



Baraka Power Gross Margin % Calculation

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

Baraka Power's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )=Gross Profit (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=540.9 / 2398.477
=(Revenue - Cost of Goods Sold) / Revenue
=(2398.477 - 1857.585) / 2398.477
=22.55 %

Baraka Power'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 )
=127.6 / 609.359
=(Revenue - Cost of Goods Sold) / Revenue
=(609.359 - 481.79) / 609.359
=20.93 %

* 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.


Baraka Power  (DHA:BARKAPOWER) 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

Baraka Power had a gross margin of 20.93% 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.


Baraka Power Gross Margin % Related Terms

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


Baraka Power (DHA:BARKAPOWER) Business Description

Traded in Other Exchanges
N/A
Address
6/A/1, Segunbagicha, 1st and 2nd Floor, Dhaka, BGD, 1000
Baraka Power Ltd is a Bangladesh-based company engaged in the business of setting up power plants for the generation and supply of electricity. The company also engaged in Engineering, Procurement, and Construction (EPC) contracts for the implementation of new power projects and has also invested in three additional power plants, a clothing project, and a school project.

Baraka Power (DHA:BARKAPOWER) Headlines

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