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Umang Dairies (NSE:UMANGDAIRY) Gross Margin % : 29.87% (As of Dec. 2023)


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What is Umang Dairies Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Umang Dairies's Gross Profit for the three months ended in Dec. 2023 was ₹227 Mil. Umang Dairies's Revenue for the three months ended in Dec. 2023 was ₹760 Mil. Therefore, Umang Dairies's Gross Margin % for the quarter that ended in Dec. 2023 was 29.87%.

Warning Sign:

Umang Dairies Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.8%.


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

NSE:UMANGDAIRY' s Gross Margin % Range Over the Past 10 Years
Min: 23.25   Med: 30.06   Max: 35.45
Current: 25.92


During the past 13 years, the highest Gross Margin % of Umang Dairies was 35.45%. The lowest was 23.25%. And the median was 30.06%.

NSE:UMANGDAIRY's Gross Margin % is ranked better than
52.24% of 1809 companies
in the Consumer Packaged Goods industry
Industry Median: 25.04 vs NSE:UMANGDAIRY: 25.92

Umang Dairies had a gross margin of 29.87% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Umang Dairies was -1.80% per year.


Umang Dairies Gross Margin % Historical Data

The historical data trend for Umang Dairies'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.

Umang Dairies Gross Margin % Chart

Umang Dairies 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 35.45 33.51 34.13 28.67 30.02

Umang Dairies 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 33.12 18.06 27.17 32.64 29.87

Competitive Comparison of Umang Dairies's Gross Margin %

For the Packaged Foods subindustry, Umang Dairies'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.


Umang Dairies's Gross Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Umang Dairies's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Umang Dairies's Gross Margin % falls into.



Umang Dairies Gross Margin % Calculation

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

Umang Dairies'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 )
=879 / 2928.323
=(Revenue - Cost of Goods Sold) / Revenue
=(2928.323 - 2049.337) / 2928.323
=30.02 %

Umang Dairies'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 )
=227.1 / 760.132
=(Revenue - Cost of Goods Sold) / Revenue
=(760.132 - 533.051) / 760.132
=29.87 %

* 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.


Umang Dairies  (NSE:UMANGDAIRY) 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

Umang Dairies had a gross margin of 29.87% 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.


Umang Dairies Gross Margin % Related Terms

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Umang Dairies (NSE:UMANGDAIRY) Business Description

Traded in Other Exchanges
Address
6A, Bahadur Shah Zafar Marg, Gulab Bhawan Rear Block, 3rd Floor, New Delhi, IND, 110 002
Umang Dairies Ltd is an Indian company engaged in the business of dairy products. The company's product includes ghee and milk powder. It manufactures multiple products under consumer packs and bulk packs for institutional use. Its product portfolio includes skimmed milk powder, whole milk powder, dairy creamer, dairy whitener, fresh cream, butter, ghee, flavored milk and others. The company's manufacturing plant is located in Gajraula, Uttar Pradesh.

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