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Chd Chemicals (BOM:539800) Gross Margin % : 8.59% (As of Dec. 2023)


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What is Chd Chemicals Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Chd Chemicals's Gross Profit for the three months ended in Dec. 2023 was ₹3.3 Mil. Chd Chemicals's Revenue for the three months ended in Dec. 2023 was ₹38.4 Mil. Therefore, Chd Chemicals's Gross Margin % for the quarter that ended in Dec. 2023 was 8.59%.

Warning Sign:

Chd Chemicals Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.8%.


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

BOM:539800' s Gross Margin % Range Over the Past 10 Years
Min: 3.4   Med: 6.39   Max: 12.07
Current: 12.07


During the past 11 years, the highest Gross Margin % of Chd Chemicals was 12.07%. The lowest was 3.40%. And the median was 6.39%.

BOM:539800's Gross Margin % is ranked worse than
78.84% of 1512 companies
in the Chemicals industry
Industry Median: 22.485 vs BOM:539800: 12.07

Chd Chemicals had a gross margin of 8.59% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Chd Chemicals was -1.80% per year.


Chd Chemicals Gross Margin % Historical Data

The historical data trend for Chd Chemicals'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.

Chd Chemicals Gross Margin % Chart

Chd Chemicals 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 5.94 4.47 3.40 6.73 7.65

Chd Chemicals 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 1.84 16.06 12.78 11.59 8.59

Competitive Comparison of Chd Chemicals's Gross Margin %

For the Specialty Chemicals subindustry, Chd Chemicals'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.


Chd Chemicals's Gross Margin % Distribution in the Chemicals Industry

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

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



Chd Chemicals Gross Margin % Calculation

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

Chd Chemicals'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 )
=14.6 / 190.73
=(Revenue - Cost of Goods Sold) / Revenue
=(190.73 - 176.143) / 190.73
=7.65 %

Chd Chemicals'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 )
=3.3 / 38.373
=(Revenue - Cost of Goods Sold) / Revenue
=(38.373 - 35.077) / 38.373
=8.59 %

* 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.


Chd Chemicals  (BOM:539800) 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

Chd Chemicals had a gross margin of 8.59% 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.


Chd Chemicals Gross Margin % Related Terms

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Chd Chemicals (BOM:539800) Business Description

Traded in Other Exchanges
N/A
Address
Plot No. 331, Industrial Area, Phase II, Panchkula, HR, IND, 134113
Chd Chemicals Ltd trades and distributes chemicals and dyes for textiles, leather, plastics, paper, printing inks, and foodstuff. It also deals in construction chemicals. The company operates in a single geographical segment which is India.

Chd Chemicals (BOM:539800) Headlines

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