Info-Drive Software (BOM:530703) Gross Margin %: 8.68% (As of Mar. 2017)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is Info-Drive Software Gross Margin %?

Info-Drive Software BOM:530703 Gross Margin % is 8.68% as of Mar. 2017.

Gross Margin % is calculated as gross profit divided by its revenue. Info-Drive Software's Gross Profit for the six months ended in Mar. 2017 was ₹105 Mil. Info-Drive Software's Revenue for the six months ended in Mar. 2017 was ₹1,204 Mil. Therefore, Info-Drive Software's Gross Margin % for the quarter that ended in Mar. 2017 was 8.68%.


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


BOM:530703's Gross Margin % is not ranked *
in the Software industry.
Industry Median: 40.07
* Ranked among companies with meaningful Gross Margin % only.

Info-Drive Software had a gross margin of 8.68% for the quarter that ended in Mar. 2017 => No sustainable competitive advantage

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


Info-Drive Software  (BOM:530703) 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

Info-Drive Software had a gross margin of 8.68% for the quarter that ended in Mar. 2017 => No sustainable 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.


Info-Drive Software Gross Margin % Related Terms


Info-Drive Software Gross Margin % Historical Data

* Premium members only.

The historical data trend for Info-Drive Software'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.

Info-Drive Software Gross Margin % Chart

Info-Drive Software Annual Data
Trend Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.00 3.40 7.12 8.04 8.68

Info-Drive Software Semi-Annual Data
Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.00 3.40 7.12 8.04 8.68

BOM:530703 vs IMCI: Gross Margin % Comparison

For the Information Technology Services subindustry, Info-Drive Software'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.


Info-Drive Software Gross Margin % vs Software Industry

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

* The bar in red indicates where Info-Drive Software's Gross Margin % falls into.



Info-Drive Software Gross Margin % Calculation

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

Info-Drive Software's Gross Margin for the fiscal year that ended in Mar. 2017 is calculated as

Gross Margin % (A: Mar. 2017 )=Gross Profit (A: Mar. 2017 ) / Revenue (A: Mar. 2017 )
=104.5 / 1204.496
=(Revenue - Cost of Goods Sold) / Revenue
=(1204.496 - 1099.965) / 1204.496
=8.68 %

Info-Drive Software's Gross Margin for the quarter that ended in Mar. 2017 is calculated as


Gross Margin % (Q: Mar. 2017 )=Gross Profit (Q: Mar. 2017 ) / Revenue (Q: Mar. 2017 )
=104.5 / 1204.496
=(Revenue - Cost of Goods Sold) / Revenue
=(1204.496 - 1099.965) / 1204.496
=8.68 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 8.68% mean?
Info-Drive Software (BOM:530703) has a Gross Margin % of 8.68% as of Mar. 2017. Gross margin is the ratio of total gross profit to net sales. View historical data on Info-Drive Software and its competitors.
Is Info-Drive Software's Gross Margin % too high?
Info-Drive Software's current Gross Margin % is 8.68%. The Software industry median Gross Margin % is 40.07. Info-Drive Software's value of 8.68% is 78.3% below this industry median.
How does Info-Drive Software's Gross Margin % compare to IMCI?
Info-Drive Software's Gross Margin % of 8.68% can be compared against companies in the Software industry. The industry median Gross Margin % is 40.07. Info-Drive Software's value of 8.68% is 78.3% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.07, based on 2,684 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Info-Drive Software's current Gross Margin % of 8.68% is 78.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Info-Drive Software and its competitors. For the Software industry, the median Gross Margin % is 40.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Info-Drive Software's current Gross Margin % is 8.68%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Info-Drive Software stock overvalued right now?
Info-Drive Software (BOM:530703) has a current Gross Margin % of 8.68%. The current Gross Margin % is 8.68% and 78.3% below the Software industry median of 40.07. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Info-Drive Software (BOM:530703), the current Gross Margin % is 8.68% as of Mar. 2017. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Info-Drive Software Business Description

Address 128 Cathedral Road, Crown Court, Sixth Floor, Office 3, Chennai, TN, IND, 600086
Info-Drive Software Ltd is an India-based company. The company is predominantly engaged in outsourcing business solutions from overseas markets, software development, infrastructure management services, systems integration, and trading of commodities. In addition, the company also provides turnkey system solutions, hardware optimization, and data center maintenance. The company product portfolio includes services like Enterprise business intelligence solutions; Consulting services and, Business process outsourcing. The majority of its revenue is generated from the Overseas market while it also has a presence in the Indian market.