Nextracker Inc. Class A Common Stock (NXT)

Gross profit margin

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021
Gross profit (ttm)	US$ in thousands	1,008,825	1,043,608	1,012,430	936,745	813,049	562,891	435,425	350,854	286,973	235,613	187,118	157,495	143,531	164,051	189,759	216,189	231,981
Revenue (ttm)	US$ in thousands	2,959,197	2,771,370	2,802,433	2,740,219	2,499,841	2,281,721	2,084,665	1,978,450	1,902,137	1,823,555	1,647,792	1,519,349	1,457,592	1,322,607	1,289,828	1,240,884	1,195,617
Gross profit margin		34.09%	37.66%	36.13%	34.19%	32.52%	24.67%	20.89%	17.73%	15.09%	12.92%	11.36%	10.37%	9.85%	12.40%	14.71%	17.42%	19.40%

March 31, 2025 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,008,825K ÷ $2,959,197K
= 34.09%

Nextracker Inc. Class A Common Stock's gross profit margin has seen fluctuations over the analyzed period from March 31, 2021, to March 31, 2025. The gross profit margin started at 19.40% in March 2021, gradually declining to 9.85% by March 31, 2022. However, from that point on, the gross profit margin showed a consistent improvement, reaching 34.09% by March 31, 2025.

The trend indicates that there were challenges impacting profitability initially, but the company managed to make significant improvements in its gross profit margin over time. This positive trend from 2022 onwards suggests that the company may have implemented cost controls, improved operational efficiency, or increased pricing strategies to enhance its profitability.

Overall, the increasing gross profit margin percentage reflects the company's ability to generate more revenue from its core operations after accounting for the cost of goods sold. This improvement can be seen as a positive sign of the company's financial health and operational effectiveness.