Shanthala FMCG Products (NSE:SHANTHALA) Gross Margin % : 2.86% (As of Mar. 2023)

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What is Shanthala FMCG Products Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Shanthala FMCG Products's Gross Profit for the six months ended in Mar. 2023 was ₹11.6 Mil. Shanthala FMCG Products's Revenue for the six months ended in Mar. 2023 was ₹405.2 Mil. Therefore, Shanthala FMCG Products's Gross Margin % for the quarter that ended in Mar. 2023 was 2.86%.

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

NSE:SHANTHALA' s Gross Margin % Range Over the Past 10 Years
Min: 2.86 Med: 2.89 Max: 3.04
Current: 2.86

During the past 3 years, the highest Gross Margin % of Shanthala FMCG Products was 3.04%. The lowest was 2.86%. And the median was 2.89%.

NSE:SHANTHALA's Gross Margin % is ranked worse than
96.03% of 479 companies
in the Conglomerates industry
Industry Median: 25.03 vs NSE:SHANTHALA: 2.86

Shanthala FMCG Products had a gross margin of 2.86% for the quarter that ended in Mar. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Shanthala FMCG Products was 0.00% per year.

Shanthala FMCG Products Gross Margin % Historical Data

The historical data trend for Shanthala FMCG Products'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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Shanthala FMCG Products Gross Margin % Chart

Shanthala FMCG Products Annual Data

Trend

Mar21

Mar22

Mar23

Gross Margin %

3.04

2.89

2.86

Shanthala FMCG Products Semi-Annual Data
	Mar21	Mar22	Mar23
Gross Margin %	3.04	2.89	2.86

Competitive Comparison of Shanthala FMCG Products's Gross Margin %

For the Conglomerates subindustry, Shanthala FMCG Products'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.

Shanthala FMCG Products's Gross Margin % Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Shanthala FMCG Products's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Shanthala FMCG Products's Gross Margin % falls into.

Shanthala FMCG Products Gross Margin % Calculation

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

Shanthala FMCG Products'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 )
	=	11.6	/	405.159
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(405.159 - 393.581)	/	405.159
	=	2.86 %

Shanthala FMCG Products'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 )
	=	11.6	/	405.159
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(405.159 - 393.581)	/	405.159
	=	2.86 %

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.

Shanthala FMCG Products (NSE:SHANTHALA) 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

Shanthala FMCG Products had a gross margin of 2.86% 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.

Shanthala FMCG Products Gross Margin % Related Terms

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Shanthala FMCG Products (NSE:SHANTHALA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Shanthala FMCG Products Ltd (NSE:SHANTHALA) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Gandhinagr Bye Pass Road, 7th Block, Kodagu, Virajpet, KA, IND, 571218

Website

https://www.shanthalafmcg.com

Shanthala FMCG Products Ltd is an FMCG product distributor for large-size FMCG Companies in India for whom It distributes Branded packaged foods, Personal care products, Education & stationery products, Matches & Agarbatti and tobacco products. It is also a distributor for one of the largest FMCG MNC Company in India. It distributes branded Beauty & wellbeing, Nutrition, Personal care & Home care products for them.

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