Gross Margin % is calculated as gross profit divided by its revenue. BASF India's Gross Profit for the
three
months ended in Dec. 2023 was ₹5,706 Mil. BASF India's Revenue for the
three
months ended in Dec. 2023 was ₹33,222 Mil. Therefore, BASF India's Gross Margin % for the quarter that ended in Dec. 2023 was 17.18%.
Warning Sign:
BASF India Ltd gross margin has been in long-term decline. The average rate of decline per year is -9.4%.
The historical rank and industry rank for BASF India's Gross Margin % or its related term are showing as below:
BOM:500042'
s Gross Margin % Range Over the Past 10 Years
Min: 15.18 Med: 23.2 Max: 27.99
Current: 15.65
During the past 13 years, the highestGross Margin % of BASF India was 27.99%. The lowest was 15.18%. And the median was 23.20%.
BOM:500042's Gross Margin % is ranked worse than 69.1% of 1508
companies
in the Chemicals industry
Industry Median: 22.205
vs BOM:500042: 15.65
BASF India had a gross margin of 17.18% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for BASF India was -9.40% per year.
BASF India Gross Margin % Historical Data
The historical data trend for BASF India'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 BASF India's Gross Margin %
For the Specialty Chemicals subindustry, BASF India'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.
BASF India's Gross Margin % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, BASF India's Gross Margin % distribution charts can be found below:
* The bar in red indicates where BASF India'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.
BASF India (BOM:500042) 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
BASF India had a gross margin of 17.18% for the quarter that ended in Dec. 2023 => No sustainable 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.
BASF India Gross Margin % Related Terms
Thank you for viewing the detailed overview of BASF India's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
BASF India Ltd is a subsidiary of BASF SE, and the company manufactures and sells a variety of chemicals. Its segments include the Materials segment produces raw materials for plastics and auto components as well as related consumer products. industrial solutions segment supplies chemicals for paint, stationery goods, plastic production, and mining. The agricultural solutions segment sells pesticides. The surface technologies segment sells chemicals for coatings, construction, and chemical production. The nutrition and care segment sells ingredients for personal care, cleaning, and nutrition. chemicals segment supplies intermediates for the petrochemical and pharmaceutical end markets. Other segment includes activities that are not allocated to any of the continued operating divisions.
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