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Capfin India (BOM:539198) Gross Margin % : 27.21% (As of Mar. 2024)


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What is Capfin India Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Capfin India's Gross Profit for the three months ended in Mar. 2024 was ₹0.50 Mil. Capfin India's Revenue for the three months ended in Mar. 2024 was ₹1.83 Mil. Therefore, Capfin India's Gross Margin % for the quarter that ended in Mar. 2024 was 27.21%.

Warning Sign:

Capfin India Ltd gross margin has been in long-term decline. The average rate of decline per year is -19.4%.


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

BOM:539198' s Gross Margin % Range Over the Past 10 Years
Min: 5.56   Med: 42.82   Max: 70.65
Current: 32.24


During the past 10 years, the highest Gross Margin % of Capfin India was 70.65%. The lowest was 5.56%. And the median was 42.82%.

BOM:539198's Gross Margin % is ranked worse than
75.99% of 354 companies
in the Credit Services industry
Industry Median: 53.125 vs BOM:539198: 32.24

Capfin India had a gross margin of 27.21% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Capfin India was -19.40% per year.


Capfin India Gross Margin % Historical Data

The historical data trend for Capfin India'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.

Capfin India Gross Margin % Chart

Capfin India 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 46.27 46.13 38.09 6.78 32.24

Capfin India 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 9,881.16 35.14 27.27 62.15 27.21

Competitive Comparison of Capfin India's Gross Margin %

For the Credit Services subindustry, Capfin India'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.


Capfin India's Gross Margin % Distribution in the Credit Services Industry

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

* The bar in red indicates where Capfin India's Gross Margin % falls into.



Capfin India Gross Margin % Calculation

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

Capfin India'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 )
=0.8 / 2.497
=(Revenue - Cost of Goods Sold) / Revenue
=(2.497 - 1.692) / 2.497
=32.24 %

Capfin India'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 )
=0.5 / 1.83
=(Revenue - Cost of Goods Sold) / Revenue
=(1.83 - 1.332) / 1.83
=27.21 %

* 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.


Capfin India  (BOM:539198) 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

Capfin India had a gross margin of 27.21% 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.


Capfin India Gross Margin % Related Terms

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Capfin India (BOM:539198) Business Description

Traded in Other Exchanges
N/A
Address
New Rohtak Road, 1C/13, Basement Rajnigandha Building, New Delhi, IND, 110005
Capfin India Ltd is a non-banking financial company. It deals in the investment business, shares, stocks, and securities. It also deals in underwriting, share stock, debentures, debentures stock, bonds, mortgages, obligations, and securities. It also acts as a service agent and offers after-sale services including technical consultancy. Capfin generates revenue from the sale of shares and interest income from loan advances. The Company operates in a single segment that is ''providing loans to corporates and non-corporates".

Capfin India (BOM:539198) Headlines

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