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HPL Electric & Power (NSE:HPL) Gross Margin % : 34.79% (As of Sep. 2024)


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What is HPL Electric & Power Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. HPL Electric & Power's Gross Profit for the three months ended in Sep. 2024 was ₹1,469 Mil. HPL Electric & Power's Revenue for the three months ended in Sep. 2024 was ₹4,223 Mil. Therefore, HPL Electric & Power's Gross Margin % for the quarter that ended in Sep. 2024 was 34.79%.

Warning Sign:

HPL Electric & Power Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.1%.


The historical rank and industry rank for HPL Electric & Power's Gross Margin % or its related term are showing as below:

NSE:HPL' s Gross Margin % Range Over the Past 10 Years
Min: 31.46   Med: 34.1   Max: 37.28
Current: 34.95


During the past 10 years, the highest Gross Margin % of HPL Electric & Power was 37.28%. The lowest was 31.46%. And the median was 34.10%.

NSE:HPL's Gross Margin % is ranked better than
71.22% of 2953 companies
in the Industrial Products industry
Industry Median: 26.71 vs NSE:HPL: 34.95

HPL Electric & Power had a gross margin of 34.79% for the quarter that ended in Sep. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for HPL Electric & Power was -1.10% per year.


HPL Electric & Power Gross Margin % Historical Data

The historical data trend for HPL Electric & Power'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.

HPL Electric & Power Gross Margin % Chart

HPL Electric & Power Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 37.28 36.80 35.63 33.31 34.23

HPL Electric & Power Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 34.34 35.10 34.28 35.71 34.79

Competitive Comparison of HPL Electric & Power's Gross Margin %

For the Electrical Equipment & Parts subindustry, HPL Electric & Power'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.


HPL Electric & Power's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, HPL Electric & Power's Gross Margin % distribution charts can be found below:

* The bar in red indicates where HPL Electric & Power's Gross Margin % falls into.



HPL Electric & Power Gross Margin % Calculation

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

HPL Electric & Power's Gross Margin for the fiscal year that ended in Mar. 2024 is calculated as

Gross Margin % (A: Mar. 2024 )=Gross Profit (A: Mar. 2024 ) / Revenue (A: Mar. 2024 )
=5000.9 / 14608.581
=(Revenue - Cost of Goods Sold) / Revenue
=(14608.581 - 9607.645) / 14608.581
=34.23 %

HPL Electric & Power's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=1469.3 / 4223.236
=(Revenue - Cost of Goods Sold) / Revenue
=(4223.236 - 2753.975) / 4223.236
=34.79 %

* 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.


HPL Electric & Power  (NSE:HPL) 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

HPL Electric & Power had a gross margin of 34.79% for the quarter that ended in Sep. 2024 => 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.


HPL Electric & Power Gross Margin % Related Terms

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HPL Electric & Power Business Description

Traded in Other Exchanges
Address
76-B, Phase-IV, HSIIDC Industrial Estate, Sector-57, Kundli, Sonipat, UP, IND, 131028
HPL Electric & Power Ltd is an Indian company engaged in manufacturing electric equipment across the key verticals: Metering, Switchgear, Lighting and Electronics, and Cables. The company operates in two segments: Metering, systems & services, and Consumer, Industrial & services. It derives key revenue from the Metering, Systems & Services segment. The product portfolio includes digital panel meters, smart Meters, Net Meters for Solar Rooftops, Prepaid Metering Solutions, Ebrit Digital Panel Meters, cordless chimes, and Trivector Meters. Geographically, the majority of its revenue is generated in India.

HPL Electric & Power Headlines

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