Ratnaveer Precision Engineering (BOM:543978) Gross Margin % : 15.98% (As of Mar. 2023)

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What is Ratnaveer Precision Engineering Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Ratnaveer Precision Engineering's Gross Profit for the six months ended in Mar. 2023 was ₹767 Mil. Ratnaveer Precision Engineering's Revenue for the six months ended in Mar. 2023 was ₹4,797 Mil. Therefore, Ratnaveer Precision Engineering's Gross Margin % for the quarter that ended in Mar. 2023 was 15.98%.

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

BOM:543978' s Gross Margin % Range Over the Past 10 Years
Min: 12.86 Med: 15.34 Max: 16.8
Current: 15.98

During the past 4 years, the highest Gross Margin % of Ratnaveer Precision Engineering was 16.80%. The lowest was 12.86%. And the median was 15.34%.

BOM:543978's Gross Margin % is ranked better than
60.79% of 584 companies
in the Steel industry
Industry Median: 12.845 vs BOM:543978: 15.98

Ratnaveer Precision Engineering had a gross margin of 15.98% for the quarter that ended in Mar. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Ratnaveer Precision Engineering was 0.00% per year.

Ratnaveer Precision Engineering Gross Margin % Historical Data

The historical data trend for Ratnaveer Precision Engineering'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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Ratnaveer Precision Engineering Gross Margin % Chart

Ratnaveer Precision Engineering Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

Gross Margin %

16.80

12.86

14.70

15.98

Ratnaveer Precision Engineering Semi-Annual Data
	Mar20	Mar21	Mar22	Mar23
Gross Margin %	16.80	12.86	14.70	15.98

Competitive Comparison of Ratnaveer Precision Engineering's Gross Margin %

For the Steel subindustry, Ratnaveer Precision Engineering'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.

Ratnaveer Precision Engineering's Gross Margin % Distribution in the Steel Industry

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

* The bar in red indicates where Ratnaveer Precision Engineering's Gross Margin % falls into.

Ratnaveer Precision Engineering Gross Margin % Calculation

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

Ratnaveer Precision Engineering'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 )
	=	766.7	/	4797.3
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4797.3 - 4030.62)	/	4797.3
	=	15.98 %

Ratnaveer Precision Engineering's Gross Margin for the quarter that ended in Mar. 2023 is calculated as

Gross Margin % (Q: Mar. 2023 )	=	Gross Profit (Q: Mar. 2023 )	/	Revenue (Q: Mar. 2023 )
	=	766.7	/	4797.3
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4797.3 - 4030.62)	/	4797.3
	=	15.98 %

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.

Ratnaveer Precision Engineering (BOM:543978) 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

Ratnaveer Precision Engineering had a gross margin of 15.98% for the quarter that ended in Mar. 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.

Ratnaveer Precision Engineering Gross Margin % Related Terms

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Ratnaveer Precision Engineering (BOM:543978) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Ratnaveer Precision Engineering Ltd (BOM:543978) » Definitions » Gross Margin %

Traded in Other Exchanges

RATNAVEER:India

Address

Plot no. E-77, G.I.D.C, Savli (Manjusar), Vadodara, GJ, IND, 391 775

Website

https://www.ratnaveer.com

Ratnaveer Precision Engineering Ltd is a stainless steel (SS) product manufacturer focused on producing finished sheets, washers, solar roofing hooks, pipes and tubes. It manufactures finishing sheets, washers and solar mounting hooks at Unit I and SS pipes & tubes at Unit II. Unit III and Unit IV are dedicated to the backward integration process where Unit III is the melting unit where the company melts steel scrap and turns it into steel ingots and Unit IV is the rolling unit where flat ingots are further processed to turn them into sheets which are the raw material for washers.

Ratnaveer Precision Engineering (BOM:543978) Headlines

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