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Vani Commercials (BOM:538918) Gross Margin % : -87.17% (As of Mar. 2024)


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What is Vani Commercials Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Vani Commercials's Gross Profit for the three months ended in Mar. 2024 was ₹3.45 Mil. Vani Commercials's Revenue for the three months ended in Mar. 2024 was ₹-3.96 Mil. Therefore, Vani Commercials's Gross Margin % for the quarter that ended in Mar. 2024 was -87.17%.


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

BOM:538918' s Gross Margin % Range Over the Past 10 Years
Min: 36.33   Med: 45.29   Max: 61.96
Current: 37.2


During the past 11 years, the highest Gross Margin % of Vani Commercials was 61.96%. The lowest was 36.33%. And the median was 45.29%.

BOM:538918's Gross Margin % is ranked worse than
69.49% of 354 companies
in the Credit Services industry
Industry Median: 53.125 vs BOM:538918: 37.20

Vani Commercials had a gross margin of -87.17% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Vani Commercials was 0.00% per year.


Vani Commercials Gross Margin % Historical Data

The historical data trend for Vani Commercials'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.

Vani Commercials Gross Margin % Chart

Vani Commercials 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 60.89 39.44 39.50 - 36.33

Vani Commercials 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 49.83 35.82 26.17 11.82 -87.17

Competitive Comparison of Vani Commercials's Gross Margin %

For the Credit Services subindustry, Vani Commercials'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.


Vani Commercials's Gross Margin % Distribution in the Credit Services Industry

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

* The bar in red indicates where Vani Commercials's Gross Margin % falls into.



Vani Commercials Gross Margin % Calculation

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

Vani Commercials'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 )
=11.4 / 31.385
=(Revenue - Cost of Goods Sold) / Revenue
=(31.385 - 19.983) / 31.385
=36.33 %

Vani Commercials'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 )
=3.5 / -3.958
=(Revenue - Cost of Goods Sold) / Revenue
=(-3.958 - -7.408) / -3.958
=-87.17 %

* 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.


Vani Commercials  (BOM:538918) 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

Vani Commercials had a gross margin of -87.17% for the quarter that ended in Mar. 2024 => 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.


Vani Commercials Gross Margin % Related Terms

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Vani Commercials (BOM:538918) Business Description

Traded in Other Exchanges
N/A
Address
162?A, Second fFloor, Sector?7, Dwarka, New Delhi, IND, 110045
Vani Commercials Ltd is an India-based non-banking finance company. Its product includes loans for the purchase of equipment and machinery, working capital loans, loans for business or capacity expansion, term loans against property, loans for the purchase of commercial property, and lease rental discounting. The company offers its lending services to Micro, Small, and Medium Enterprises. It derives key revenue from the Interest income.

Vani Commercials (BOM:538918) Headlines

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