GURUFOCUS.COM » STOCK LIST » Technology » Software » Zensar Technologies Ltd (BOM:504067) » Definitions » Gross Margin %

Zensar Technologies (BOM:504067) Gross Margin % : 23.04% (As of Mar. 2024)


View and export this data going back to 1991. Start your Free Trial

What is Zensar Technologies Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Zensar Technologies's Gross Profit for the three months ended in Mar. 2024 was ₹2,833 Mil. Zensar Technologies's Revenue for the three months ended in Mar. 2024 was ₹12,297 Mil. Therefore, Zensar Technologies's Gross Margin % for the quarter that ended in Mar. 2024 was 23.04%.

Warning Sign:

Zensar Technologies Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.9%.


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

BOM:504067' s Gross Margin % Range Over the Past 10 Years
Min: 18.31   Med: 26.25   Max: 39.56
Current: 24.16


During the past 13 years, the highest Gross Margin % of Zensar Technologies was 39.56%. The lowest was 18.31%. And the median was 26.25%.

BOM:504067's Gross Margin % is ranked worse than
74.72% of 2627 companies
in the Software industry
Industry Median: 41.73 vs BOM:504067: 24.16

Zensar Technologies had a gross margin of 23.04% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Zensar Technologies was -3.90% per year.


Zensar Technologies Gross Margin % Historical Data

The historical data trend for Zensar Technologies'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.

Zensar Technologies Gross Margin % Chart

Zensar Technologies 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 27.18 28.71 25.87 18.31 24.16

Zensar Technologies Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 21.55 25.51 24.77 23.30 23.04

Competitive Comparison of Zensar Technologies's Gross Margin %

For the Information Technology Services subindustry, Zensar Technologies'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.


Zensar Technologies's Gross Margin % Distribution in the Software Industry

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

* The bar in red indicates where Zensar Technologies's Gross Margin % falls into.



Zensar Technologies Gross Margin % Calculation

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

Zensar Technologies'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 )
=11843 / 49019
=(Revenue - Cost of Goods Sold) / Revenue
=(49019 - 37176) / 49019
=24.16 %

Zensar Technologies's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=2833 / 12297
=(Revenue - Cost of Goods Sold) / Revenue
=(12297 - 9464) / 12297
=23.04 %

* 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.


Zensar Technologies  (BOM:504067) 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

Zensar Technologies had a gross margin of 23.04% for the quarter that ended in Mar. 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.


Zensar Technologies Gross Margin % Related Terms

Thank you for viewing the detailed overview of Zensar Technologies's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Zensar Technologies (BOM:504067) Business Description

Traded in Other Exchanges
Address
Plot No. 4, Off Nagar Road, Zensar Knowledge Park, MIDC, Kharadi, Pune, MH, IND, 411 014
Zensar Technologies Ltd provides a range of information technology services and sells IT-related products. The company segments include Digital and Application Services (DAS) and Digital Foundation Services (DFS). It generates maximum revenue from the DAS segment. The Digital and Application Services (DAS) segment is engaged in Custom Applications Management Services that include Application Development, Maintenance, Support, Modernization and Testing Services across a wide technology spectrum and Industry verticals. The majority of revenue comes from the United States.

Zensar Technologies (BOM:504067) Headlines

No Headlines