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Gatron Industries (KAR:GATI) Gross Margin % : 5.71% (As of Mar. 2024)


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What is Gatron Industries Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Gatron Industries's Gross Profit for the three months ended in Mar. 2024 was ₨496 Mil. Gatron Industries's Revenue for the three months ended in Mar. 2024 was ₨8,684 Mil. Therefore, Gatron Industries's Gross Margin % for the quarter that ended in Mar. 2024 was 5.71%.

Warning Sign:

Gatron Industries Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.2%.


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

KAR:GATI' s Gross Margin % Range Over the Past 10 Years
Min: 1.65   Med: 9.84   Max: 16.26
Current: 6.23


During the past 8 years, the highest Gross Margin % of Gatron Industries was 16.26%. The lowest was 1.65%. And the median was 9.84%.

KAR:GATI's Gross Margin % is ranked worse than
88.55% of 1022 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 26.97 vs KAR:GATI: 6.23

Gatron Industries had a gross margin of 5.71% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Gatron Industries was -2.20% per year.


Gatron Industries Gross Margin % Historical Data

The historical data trend for Gatron Industries'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.

Gatron Industries Gross Margin % Chart

Gatron Industries Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Gross Margin %
Get a 7-Day Free Trial 11.45 8.23 13.91 16.26 7.30

Gatron Industries Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 8.07 7.42 6.18 5.88 5.71

Competitive Comparison of Gatron Industries's Gross Margin %

For the Textile Manufacturing subindustry, Gatron Industries'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.


Gatron Industries's Gross Margin % Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Gatron Industries's Gross Margin % distribution charts can be found below:

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



Gatron Industries Gross Margin % Calculation

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

Gatron Industries's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )=Gross Profit (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=2000.3 / 27383.78
=(Revenue - Cost of Goods Sold) / Revenue
=(27383.78 - 25383.514) / 27383.78
=7.30 %

Gatron Industries's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=495.5 / 8684.2
=(Revenue - Cost of Goods Sold) / Revenue
=(8684.2 - 8188.66) / 8684.2
=5.71 %

* 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.


Gatron Industries  (KAR:GATI) 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

Gatron Industries had a gross margin of 5.71% for the quarter that ended in Mar. 2024 => 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.


Gatron Industries Gross Margin % Related Terms

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Gatron Industries (KAR:GATI) Business Description

Traded in Other Exchanges
N/A
Address
Jinnah Road, 1st Floor, Ahmed Complex, Room No. 32, Quetta, PAK
Gatron Industries Ltd is involved in the manufacturing of Polyester Filament Yarn along with its raw material Yarn Grade Polyester Chips. The company also produces other varieties of Polyester Chips, Bottle Grade as well as PET Preforms. It operates in two segments: Polyester Filament Yarn and Polyester PET Preforms. Substantial revenue is generated from the Polyester Filament Yarn segment.

Gatron Industries (KAR:GATI) Headlines

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