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Ajanta Soya (BOM:519216) Gross Margin % : 4.91% (As of Dec. 2023)


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What is Ajanta Soya Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Ajanta Soya's Gross Profit for the three months ended in Dec. 2023 was ₹125 Mil. Ajanta Soya's Revenue for the three months ended in Dec. 2023 was ₹2,536 Mil. Therefore, Ajanta Soya's Gross Margin % for the quarter that ended in Dec. 2023 was 4.91%.


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

BOM:519216' s Gross Margin % Range Over the Past 10 Years
Min: 2.03   Med: 3.37   Max: 5.78
Current: 2.03


During the past 13 years, the highest Gross Margin % of Ajanta Soya was 5.78%. The lowest was 2.03%. And the median was 3.37%.

BOM:519216's Gross Margin % is ranked worse than
95.09% of 1811 companies
in the Consumer Packaged Goods industry
Industry Median: 25.21 vs BOM:519216: 2.03

Ajanta Soya had a gross margin of 4.91% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Ajanta Soya was -0.80% per year.


Ajanta Soya Gross Margin % Historical Data

The historical data trend for Ajanta Soya'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.

Ajanta Soya Gross Margin % Chart

Ajanta Soya 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 2.92 4.58 5.78 4.98 2.32

Ajanta Soya 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 3.64 -3.87 3.02 4.42 4.91

Competitive Comparison of Ajanta Soya's Gross Margin %

For the Packaged Foods subindustry, Ajanta Soya'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.


Ajanta Soya's Gross Margin % Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where Ajanta Soya's Gross Margin % falls into.



Ajanta Soya Gross Margin % Calculation

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

Ajanta Soya'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 )
=286.2 / 12362.016
=(Revenue - Cost of Goods Sold) / Revenue
=(12362.016 - 12075.814) / 12362.016
=2.32 %

Ajanta Soya'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 )
=124.7 / 2536.313
=(Revenue - Cost of Goods Sold) / Revenue
=(2536.313 - 2411.663) / 2536.313
=4.91 %

* 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.


Ajanta Soya  (BOM:519216) 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

Ajanta Soya had a gross margin of 4.91% 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.


Ajanta Soya Gross Margin % Related Terms

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Ajanta Soya (BOM:519216) Business Description

Traded in Other Exchanges
N/A
Address
A-8, Netaji Subhash Place, 12th Floor, Bigjos Tower, Wazirpur District Centre, New Delhi, IND, 110 034
Ajanta Soya Ltd engages in the manufacture of vanaspati and refined oil with shortening products for the bakery like biscuits, puffs, pastries, and other applications. Its brands include Anchal, Dhruv, and Parv. The company generates a majority of its revenue from the sale of refined oil.

Ajanta Soya (BOM:519216) Headlines

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