NMDC (BOM:526371) Gross Margin % : 56.10% (As of Dec. 2023)

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What is NMDC Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. NMDC's Gross Profit for the three months ended in Dec. 2023 was ₹30,351 Mil. NMDC's Revenue for the three months ended in Dec. 2023 was ₹54,099 Mil. Therefore, NMDC's Gross Margin % for the quarter that ended in Dec. 2023 was 56.10%.

Warning Sign:

NMDC Ltd gross margin has been in long-term decline. The average rate of decline per year is -7%.

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

BOM:526371' s Gross Margin % Range Over the Past 10 Years
Min: 55.5 Med: 79.97 Max: 89.06
Current: 55.5

During the past 13 years, the highest Gross Margin % of NMDC was 89.06%. The lowest was 55.50%. And the median was 79.97%.

BOM:526371's Gross Margin % is ranked better than
96.75% of 584 companies
in the Steel industry
Industry Median: 12.845 vs BOM:526371: 55.50

NMDC had a gross margin of 56.10% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for NMDC was -7.00% per year.

NMDC Gross Margin % Historical Data

The historical data trend for NMDC'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.

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NMDC Gross Margin % Chart

NMDC Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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81.56

80.15

79.79

64.06

55.54

NMDC 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															53.08	59.24	53.12	52.43	56.10

Competitive Comparison of NMDC's Gross Margin %

For the Steel subindustry, NMDC'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.

NMDC's Gross Margin % Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, NMDC's Gross Margin % distribution charts can be found below:

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

NMDC Gross Margin % Calculation

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

NMDC'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 )
	=	98115.1	/	176668.8
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(176668.8 - 78553.7)	/	176668.8
	=	55.54 %

NMDC'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 )
	=	30351.3	/	54099
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(54099 - 23747.7)	/	54099
	=	56.10 %

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.

NMDC (BOM:526371) 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

NMDC had a gross margin of 56.10% 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.

NMDC Gross Margin % Related Terms

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NMDC (BOM:526371) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » NMDC Ltd (BOM:526371) » Definitions » Gross Margin %

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NMDC:India

Address

Khanij Bhavan, 10-3-311/A, Castle Hills, Masab Tank, Hyderabad, TG, IND, 500 028

Website

https://www.nmdc.co.in

NMDC Ltd is engaged in the mining of a wide range of minerals, including iron ore, copper, sponge iron, rock phosphate, limestone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, and beach sands. The company also owns a windmill project in Karnataka. Iron ore accounts for most of its revenue. It produces iron ore from three mines: namely, Bailadila Deposit-14/11C, Bailadila Deposit-5, 10/11A (Chhattisgarh State), and Donimalai Iron Ore Mines (Karnataka State). Geographically, the company generates the majority of its revenue from the Indian domestic market. The Indian government owns a majority share of the company.

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