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Tata Steel (Tata Steel) Gross Margin % : 58.98% (As of Dec. 2023)


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What is Tata Steel Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Tata Steel's Gross Profit for the three months ended in Dec. 2023 was $3,877 Mil. Tata Steel's Revenue for the three months ended in Dec. 2023 was $6,574 Mil. Therefore, Tata Steel's Gross Margin % for the quarter that ended in Dec. 2023 was 58.98%.

Warning Sign:

Tata Steel Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.9%.


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

TATLY' s Gross Margin % Range Over the Past 10 Years
Min: 41.8   Med: 52.02   Max: 56.92
Current: 42.92


During the past 13 years, the highest Gross Margin % of Tata Steel was 56.92%. The lowest was 41.80%. And the median was 52.02%.

TATLY's Gross Margin % is ranked better than
94.19% of 585 companies
in the Steel industry
Industry Median: 13.01 vs TATLY: 42.92

Tata Steel had a gross margin of 58.98% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Tata Steel was -2.90% per year.


Tata Steel Gross Margin % Historical Data

The historical data trend for Tata Steel'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.

Tata Steel Gross Margin % Chart

Tata Steel Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 52.98 48.11 54.65 55.42 41.80

Tata Steel Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 47.10 10.79 53.44 53.00 58.98

Competitive Comparison of Tata Steel's Gross Margin %

For the Steel subindustry, Tata Steel'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.


Tata Steel's Gross Margin % Distribution in the Steel Industry

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

* The bar in red indicates where Tata Steel's Gross Margin % falls into.



Tata Steel Gross Margin % Calculation

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

Tata Steel'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 )
=12364.1 / 29581.019
=(Revenue - Cost of Goods Sold) / Revenue
=(29581.019 - 17216.872) / 29581.019
=41.80 %

Tata Steel's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=3877.4 / 6573.534
=(Revenue - Cost of Goods Sold) / Revenue
=(6573.534 - 2696.148) / 6573.534
=58.98 %

* 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.


Tata Steel  (OTCPK:TATLY) 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

Tata Steel had a gross margin of 58.98% for the quarter that ended in Dec. 2023 => Durable 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.


Tata Steel Gross Margin % Related Terms

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Tata Steel (Tata Steel) Business Description

Address
24 Homi Mody Street, Bombay House, Fort, Mumbai, MH, IND, 400 001
Tata Steel Ltd is an India-based company that is engaged in the production and marketing of various steel products. Its products are basically classified into flat products and construction products. Flat products include hot-rolled steel, cold-rolled steel, metallic-coated steel, direct-coated steel, tubes, packaging steel, electro-plated steel, and narrow strip. Its segments include Tata Steel India, Tata Steel Long Products, Other Indian operations, Tata Steel Europe, Other trade related operations, South-East Asian operations, and the Rest of the world.

Tata Steel (Tata Steel) Headlines

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