GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Palco Metals Ltd (BOM:539121) » Definitions » Gross Margin %

Palco Metals (BOM:539121) Gross Margin % : 4.40% (As of Dec. 2023)


View and export this data going back to 2015. Start your Free Trial

What is Palco Metals Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Palco Metals's Gross Profit for the three months ended in Dec. 2023 was ₹23 Mil. Palco Metals's Revenue for the three months ended in Dec. 2023 was ₹529 Mil. Therefore, Palco Metals's Gross Margin % for the quarter that ended in Dec. 2023 was 4.40%.

Warning Sign:

Palco Metals Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.6%.


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

BOM:539121' s Gross Margin % Range Over the Past 10 Years
Min: 5.2   Med: 6.81   Max: 7.88
Current: 5.21


During the past 9 years, the highest Gross Margin % of Palco Metals was 7.88%. The lowest was 5.20%. And the median was 6.81%.

BOM:539121's Gross Margin % is ranked worse than
77.87% of 705 companies
in the Metals & Mining industry
Industry Median: 19.27 vs BOM:539121: 5.21

Palco Metals had a gross margin of 4.40% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Palco Metals was -2.60% per year.


Palco Metals Gross Margin % Historical Data

The historical data trend for Palco Metals'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.

Palco Metals Gross Margin % Chart

Palco Metals Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 7.26 7.45 6.24 7.88 5.20

Palco Metals 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 0.70 5.90 4.47 6.40 4.40

Competitive Comparison of Palco Metals's Gross Margin %

For the Aluminum subindustry, Palco Metals'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.


Palco Metals's Gross Margin % Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Palco Metals's Gross Margin % distribution charts can be found below:

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



Palco Metals Gross Margin % Calculation

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

Palco Metals'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 )
=83 / 1596.763
=(Revenue - Cost of Goods Sold) / Revenue
=(1596.763 - 1513.715) / 1596.763
=5.20 %

Palco Metals'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 )
=23.3 / 528.844
=(Revenue - Cost of Goods Sold) / Revenue
=(528.844 - 505.592) / 528.844
=4.40 %

* 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.


Palco Metals  (BOM:539121) 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

Palco Metals had a gross margin of 4.40% 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.


Palco Metals Gross Margin % Related Terms

Thank you for viewing the detailed overview of Palco Metals's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Palco Metals (BOM:539121) Business Description

Traded in Other Exchanges
N/A
Address
CTM- Ramol Road, Block No. 1715, Saiprasad Industrial Park-II, Besides Ramol Police Station, Ramol, Ahmedabad, GJ, IND, 382449
Palco Metals Ltd is an India-based company. The company is engaged in manufacturing wire rods of various grades, conductors, and cables. Its product includes Aluminum Ingot; Aluminum Notch Bar; Aluminum Cubes; Aluminum Shots; Aluminum Powder; Aluminum Alloys; EC Grade Wire Rod; Alloy Grade for Conductors; Commercial Alloys Grade Wire Rod for Steel Plants; All Aluminum Conductor (AAC); Aluminum Conductor Steel Reinforced (ACSR) Conductor; All Aluminum Alloy Conductor (AAAC); PALCO PVC Cables; Industrial Power Cables; House Wiring Cables; Industrial Control Cables; FRLS (flame retardant low smoke cables) Cables; Flexible Cables; Flat Cables and XLPE Cables.

Palco Metals (BOM:539121) Headlines

No Headlines