Ekennis Software Service (BOM:543475) Gross Margin % : 59.48% (As of Sep. 2023)

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What is Ekennis Software Service Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Ekennis Software Service's Gross Profit for the six months ended in Sep. 2023 was ₹10.07 Mil. Ekennis Software Service's Revenue for the six months ended in Sep. 2023 was ₹16.94 Mil. Therefore, Ekennis Software Service's Gross Margin % for the quarter that ended in Sep. 2023 was 59.48%.

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

BOM:543475' s Gross Margin % Range Over the Past 10 Years
Min: 15.78 Med: 37.54 Max: 49.8
Current: 49.8

During the past 4 years, the highest Gross Margin % of Ekennis Software Service was 49.80%. The lowest was 15.78%. And the median was 37.54%.

BOM:543475's Gross Margin % is ranked better than
58.84% of 2631 companies
in the Software industry
Industry Median: 41.74 vs BOM:543475: 49.80

Ekennis Software Service had a gross margin of 59.48% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Ekennis Software Service was 0.00% per year.

Ekennis Software Service Gross Margin % Historical Data

The historical data trend for Ekennis Software Service'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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Ekennis Software Service Gross Margin % Chart

Ekennis Software Service Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

Gross Margin %

15.78

36.14

38.94

44.63

Ekennis Software Service Semi-Annual Data
	Mar20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Gross Margin %	Get a 7-Day Free Trial			24.92	48.79	45.61	43.05	59.48

Competitive Comparison of Ekennis Software Service's Gross Margin %

For the Information Technology Services subindustry, Ekennis Software Service'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.

Ekennis Software Service's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Ekennis Software Service's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Ekennis Software Service's Gross Margin % falls into.

Ekennis Software Service Gross Margin % Calculation

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

Ekennis Software Service'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 )
	=	28.2	/	63.287
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(63.287 - 35.044)	/	63.287
	=	44.63 %

Ekennis Software Service'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 )
	=	10.1	/	16.936
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(16.936 - 6.863)	/	16.936
	=	59.48 %

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.

Ekennis Software Service (BOM:543475) 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

Ekennis Software Service had a gross margin of 59.48% for the quarter that ended in Sep. 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.

Ekennis Software Service Gross Margin % Related Terms

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Ekennis Software Service (BOM:543475) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Ekennis Software Service Ltd (BOM:543475) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 1&2 Second Floor, Neeladri Circle, Electronic City Phase-1, Dodathogur Village, Bangalore, KA, IND, 560100

Website

https://www.ekennis.com

Ekennis Software Service Ltd operates in the Information technology and Printing Industry. It is in the business of Software IT Solution and Consulting Services, IT Product / Software Development and Software Training, Enterprise Resource Planning solutions, Learning Management solutions, 3D Printing, Digital Printing and Packaging Design Management consultancy. The company generates majority of its revenue from Manpower Supply Services.

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