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Lead Financial Services (BOM:531288) Gross Margin % : 86.68% (As of Sep. 2024)


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What is Lead Financial Services Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Lead Financial Services's Gross Profit for the three months ended in Sep. 2024 was ₹1.37 Mil. Lead Financial Services's Revenue for the three months ended in Sep. 2024 was ₹1.58 Mil. Therefore, Lead Financial Services's Gross Margin % for the quarter that ended in Sep. 2024 was 86.68%.


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

BOM:531288' s Gross Margin % Range Over the Past 10 Years
Min: -120.3   Med: 25.48   Max: 95.48
Current: 88.4


During the past 13 years, the highest Gross Margin % of Lead Financial Services was 95.48%. The lowest was -120.30%. And the median was 25.48%.

BOM:531288's Gross Margin % is ranked better than
88.04% of 368 companies
in the Credit Services industry
Industry Median: 55.15 vs BOM:531288: 88.40

Lead Financial Services had a gross margin of 86.68% for the quarter that ended in Sep. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Lead Financial Services was 0.00% per year.


Lead Financial Services Gross Margin % Historical Data

The historical data trend for Lead Financial Services'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.

Lead Financial Services Gross Margin % Chart

Lead Financial Services 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 -120.30 -77.72 5.93 74.53 80.71

Lead Financial Services 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 83.92 84.10 78.76 104.40 86.68

Competitive Comparison of Lead Financial Services's Gross Margin %

For the Credit Services subindustry, Lead Financial Services'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.


Lead Financial Services's Gross Margin % Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Lead Financial Services's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Lead Financial Services's Gross Margin % falls into.



Lead Financial Services Gross Margin % Calculation

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

Lead Financial Services'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 )
=4.3 / 5.377
=(Revenue - Cost of Goods Sold) / Revenue
=(5.377 - 1.037) / 5.377
=80.71 %

Lead Financial Services'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 )
=1.4 / 1.576
=(Revenue - Cost of Goods Sold) / Revenue
=(1.576 - 0.21) / 1.576
=86.68 %

* 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.


Lead Financial Services  (BOM:531288) 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

Lead Financial Services had a gross margin of 86.68% for the quarter that ended in Sep. 2024 => 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.


Lead Financial Services Gross Margin % Related Terms

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Lead Financial Services Business Description

Traded in Other Exchanges
N/A
Address
718/21 Joshi Road, 101, Sita Ram Mansion, Karol Bagh, New Delhi, IND, 110005
Lead Financial Services Ltd operates as an Indian non-banking financial company based in New Delhi. The company offers various types of loans to its customers. The company also offers financial services to its clients. It derives primary revenue from the interest income.

Lead Financial Services Headlines

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