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Vidhi Specialty Food Ingredients (BOM:531717) Gross Margin % : 44.21% (As of Dec. 2023)


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What is Vidhi Specialty Food Ingredients Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Vidhi Specialty Food Ingredients's Gross Profit for the three months ended in Dec. 2023 was ₹278 Mil. Vidhi Specialty Food Ingredients's Revenue for the three months ended in Dec. 2023 was ₹630 Mil. Therefore, Vidhi Specialty Food Ingredients's Gross Margin % for the quarter that ended in Dec. 2023 was 44.21%.

Warning Sign:

Vidhi Specialty Food Ingredients Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.9%.


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

BOM:531717' s Gross Margin % Range Over the Past 10 Years
Min: 17.48   Med: 20.2   Max: 28.34
Current: 24.65


During the past 13 years, the highest Gross Margin % of Vidhi Specialty Food Ingredients was 28.34%. The lowest was 17.48%. And the median was 20.20%.

BOM:531717's Gross Margin % is ranked better than
57.31% of 1511 companies
in the Chemicals industry
Industry Median: 22.22 vs BOM:531717: 24.65

Vidhi Specialty Food Ingredients had a gross margin of 44.21% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Vidhi Specialty Food Ingredients was -1.90% per year.


Vidhi Specialty Food Ingredients Gross Margin % Historical Data

The historical data trend for Vidhi Specialty Food Ingredients'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.

Vidhi Specialty Food Ingredients Gross Margin % Chart

Vidhi Specialty Food Ingredients 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 25.92 28.34 26.17 20.07 20.33

Vidhi Specialty Food Ingredients 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 29.58 -5.76 32.30 32.67 44.21

Competitive Comparison of Vidhi Specialty Food Ingredients's Gross Margin %

For the Specialty Chemicals subindustry, Vidhi Specialty Food Ingredients'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.


Vidhi Specialty Food Ingredients's Gross Margin % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Vidhi Specialty Food Ingredients's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Vidhi Specialty Food Ingredients's Gross Margin % falls into.



Vidhi Specialty Food Ingredients Gross Margin % Calculation

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

Vidhi Specialty Food Ingredients'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 )
=805.5 / 3962.01
=(Revenue - Cost of Goods Sold) / Revenue
=(3962.01 - 3156.485) / 3962.01
=20.33 %

Vidhi Specialty Food Ingredients'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 )
=278.4 / 629.726
=(Revenue - Cost of Goods Sold) / Revenue
=(629.726 - 351.321) / 629.726
=44.21 %

* 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.


Vidhi Specialty Food Ingredients  (BOM:531717) 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

Vidhi Specialty Food Ingredients had a gross margin of 44.21% 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.


Vidhi Specialty Food Ingredients Gross Margin % Related Terms

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Vidhi Specialty Food Ingredients (BOM:531717) Business Description

Traded in Other Exchanges
Address
78, Tardeo Road, E/27/28/29, Commerce Centre, Mumbai, MH, IND, 400034
Vidhi Specialty Food Ingredients Ltd is engaged in the business of manufacturing & trading synthetic food colors and chemicals. The company offers synthetic water-soluble colors, natural colors, aluminum lakes, federal food, drug, and cosmetic act certified lakes, drug and cosmetic colors, and other products. Their products are used in providing color solutions in the application of food and beverage, confectionery, pharmaceuticals, feeds, cosmetics, inkjet inks, pet food, healthcare, and salt-free color. The manufacturing facility is located in the Raigad district in the Indian state of Maharashtra. The Company's operating divisions are managed from India. The Company operates within India & Outside India. The majority of its revenue comes from export sales.

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