Hindustan Petroleum Corp Ltd gross margin has been in long-term decline. The average rate of decline per year is -22%.
The historical rank and industry rank for Hindustan Petroleum's Gross Margin % or its related term are showing as below:
NSE:HINDPETRO'
s Gross Margin % Range Over the Past 10 Years
Min: 1.69 Med: 7.28 Max: 11.76
Current: 9.13
During the past 13 years, the highestGross Margin % of Hindustan Petroleum was 11.76%. The lowest was 1.69%. And the median was 7.28%.
NSE:HINDPETRO's Gross Margin % is ranked worse than 79.33% of 929
companies
in the Oil & Gas industry
Industry Median: 28
vs NSE:HINDPETRO: 9.13
Hindustan Petroleum had a gross margin of 7.32% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Hindustan Petroleum was -22.00% per year.
Hindustan Petroleum Gross Margin % Historical Data
The historical data trend for Hindustan Petroleum'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.
Competitive Comparison of Hindustan Petroleum's Gross Margin %
For the Oil & Gas Refining & Marketing subindustry, Hindustan Petroleum'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.
Hindustan Petroleum's Gross Margin % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Hindustan Petroleum's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hindustan Petroleum's Gross Margin % falls into.
* 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.
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
Hindustan Petroleum had a gross margin of 7.32% 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.
Hindustan Petroleum Gross Margin % Related Terms
Thank you for viewing the detailed overview of Hindustan Petroleum's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Hindustan Petroleum (NSE:HINDPETRO) Business Description
Hindustan Petroleum Corp Ltd. (HPCL) is an Indian government enterprise that refines crude oil and manufactures petroleum-based products. The company operates a diverse group of refineries that process several grades of lubes, specialties, and greases along with a variety of petroleum products. HPCL also controls an extensive network of pipelines in India that transport a variety of hydrocarbon-based products. In tandem with its host of pipelines, marketing and distribution efforts are carried out through a group of terminals, service stations, bottling plants, marketing offices, and other facilities. Hindustan's products are primarily sold throughout India. The business is divided into downstream and other operations, with downstream activities generating the most revenue.
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