SP Refractories (NSE:SPRL) Gross Margin % : 28.02% (As of Sep. 2023)

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What is SP Refractories Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. SP Refractories's Gross Profit for the six months ended in Sep. 2023 was ₹39.0 Mil. SP Refractories's Revenue for the six months ended in Sep. 2023 was ₹139.4 Mil. Therefore, SP Refractories's Gross Margin % for the quarter that ended in Sep. 2023 was 28.02%.

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

NSE:SPRL' s Gross Margin % Range Over the Past 10 Years
Min: 14.62 Med: 18.8 Max: 26.73
Current: 20.14

During the past 5 years, the highest Gross Margin % of SP Refractories was 26.73%. The lowest was 14.62%. And the median was 18.80%.

NSE:SPRL's Gross Margin % is ranked worse than
64.34% of 373 companies
in the Building Materials industry
Industry Median: 24.9 vs NSE:SPRL: 20.14

SP Refractories had a gross margin of 28.02% for the quarter that ended in Sep. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for SP Refractories was 0.00% per year.

SP Refractories Gross Margin % Historical Data

The historical data trend for SP Refractories'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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SP Refractories Gross Margin % Chart

SP Refractories Annual Data

Trend

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

26.73

25.90

18.64

18.80

14.62

SP Refractories Semi-Annual Data
	Mar19	Mar20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Gross Margin %	Get a 7-Day Free Trial			23.77	14.57	17.35	11.45	28.02

Competitive Comparison of SP Refractories's Gross Margin %

For the Building Materials subindustry, SP Refractories'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.

SP Refractories's Gross Margin % Distribution in the Building Materials Industry

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

* The bar in red indicates where SP Refractories's Gross Margin % falls into.

SP Refractories Gross Margin % Calculation

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

SP Refractories'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 )
	=	39.8	/	272.361
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(272.361 - 232.552)	/	272.361
	=	14.62 %

SP Refractories's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	39	/	139.352
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(139.352 - 100.308)	/	139.352
	=	28.02 %

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.

SP Refractories (NSE:SPRL) 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

SP Refractories had a gross margin of 28.02% for the quarter that ended in Sep. 2023 => Competition eroding margins

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.

SP Refractories Gross Margin % Related Terms

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SP Refractories (NSE:SPRL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » SP Refractories Ltd (NSE:SPRL) » Definitions » Gross Margin %

Traded in Other Exchanges

N/A

Address

Hingna Road, M-10, M-11/1 & M-11/2, MIDC Industrial Area, Nagpur, MH, IND, 440016

Website

https://www.sprefractories.com

SP Refractories Ltd is engaged in manufacturing and supplying refractory material made using hydrated lime, calcined alumina, and other raw materials. The Company is involved in single segment of manufacturing and supplying of high quality refractory material. Its core focus is on refractory cement which is a niche and high-margin cement widely used in iron and steel and construction industries because of its thermal conductivity, maximum strength, and heat resistance.

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