Galada Finance (BOM:538881) Gross Margin % : 43.68% (As of Dec. 2023)

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What is Galada Finance Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Galada Finance's Gross Profit for the three months ended in Dec. 2023 was ₹1.60 Mil. Galada Finance's Revenue for the three months ended in Dec. 2023 was ₹3.67 Mil. Therefore, Galada Finance's Gross Margin % for the quarter that ended in Dec. 2023 was 43.68%.

Warning Sign:

Galada Finance Ltd gross margin has been in long-term decline. The average rate of decline per year is -6%.

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

BOM:538881' s Gross Margin % Range Over the Past 10 Years
Min: 50.61 Med: 62.81 Max: 85.25
Current: 53.17

During the past 10 years, the highest Gross Margin % of Galada Finance was 85.25%. The lowest was 50.61%. And the median was 62.81%.

BOM:538881's Gross Margin % is ranked worse than
51.81% of 359 companies
in the Credit Services industry
Industry Median: 54.12 vs BOM:538881: 53.17

Galada Finance had a gross margin of 43.68% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Galada Finance was -6.00% per year.

Galada Finance Gross Margin % Historical Data

The historical data trend for Galada Finance'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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Galada Finance Gross Margin % Chart

Galada Finance Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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70.35

54.29

50.61

50.65

54.79

Galada Finance Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															48.37	85.60	45.34	38.32	43.68

Competitive Comparison of Galada Finance's Gross Margin %

For the Credit Services subindustry, Galada Finance'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.

Galada Finance's Gross Margin % Distribution in the Credit Services Industry

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

* The bar in red indicates where Galada Finance's Gross Margin % falls into.

Galada Finance Gross Margin % Calculation

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

Galada Finance'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 )
	=	5	/	9.038
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(9.038 - 4.086)	/	9.038
	=	54.79 %

Galada Finance's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	1.6	/	3.67
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(3.67 - 2.067)	/	3.67
	=	43.68 %

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.

Galada Finance (BOM:538881) 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

Galada Finance had a gross margin of 43.68% for the quarter that ended in Dec. 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.

Galada Finance Gross Margin % Related Terms

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Galada Finance (BOM:538881) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Galada Finance Ltd (BOM:538881) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Shaffee Mohammed Road, Shanti Sadan, Old Number 4, New Number 7, Thousand Lights, Chennai, TN, IND, 600 006

Website

https://www.galadafinance.in

Galada Finance Ltd is an Indian-based non-banking financial company engaged in the business of financing. The company's services include Automobile Financing, Machinery and Equipment Financing, Insurance Solutions, and much more. Geographically, it operates only in India. The revenue is generated from interest receipts- financing operations. The Company is mainly engaged in the business of lending across retail, SME, and commercial customers with a presence in urban and rural India.

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