Siddharth Education Services (BOM:540736) Gross Margin % : 85.73% (As of Mar. 2020)

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What is Siddharth Education Services Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Siddharth Education Services's Gross Profit for the six months ended in Mar. 2020 was ₹24.83 Mil. Siddharth Education Services's Revenue for the six months ended in Mar. 2020 was ₹28.97 Mil. Therefore, Siddharth Education Services's Gross Margin % for the quarter that ended in Mar. 2020 was 85.73%.

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

BOM:540736's Gross Margin % is not ranked ^*
in the Education industry.
Industry Median: 47.34
* Ranked among companies with meaningful Gross Margin % only.

Siddharth Education Services had a gross margin of 85.73% for the quarter that ended in Mar. 2020 => Durable competitive advantage

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

Siddharth Education Services Gross Margin % Historical Data

The historical data trend for Siddharth Education 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.

Siddharth Education Services Gross Margin % Chart

Siddharth Education Services Annual Data

Trend

Mar16

Mar17

Mar18

Mar19

Mar20

Gross Margin %

67.97

91.25

96.31

85.73

Siddharth Education Services Semi-Annual Data
	Mar16	Mar17	Mar18	Mar19	Mar20
Gross Margin %	-	67.97	91.25	96.31	85.73

Competitive Comparison of Siddharth Education Services's Gross Margin %

For the Education & Training Services subindustry, Siddharth Education 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.

Siddharth Education Services's Gross Margin % Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Siddharth Education Services's Gross Margin % distribution charts can be found below:

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

Siddharth Education Services Gross Margin % Calculation

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

Siddharth Education Services's Gross Margin for the fiscal year that ended in Mar. 2020 is calculated as

Gross Margin % (A: Mar. 2020 )	=	Gross Profit (A: Mar. 2020 )	/	Revenue (A: Mar. 2020 )
	=	24.8	/	28.965
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(28.965 - 4.132)	/	28.965
	=	85.73 %

Siddharth Education Services's Gross Margin for the quarter that ended in Mar. 2020 is calculated as

Gross Margin % (Q: Mar. 2020 )	=	Gross Profit (Q: Mar. 2020 )	/	Revenue (Q: Mar. 2020 )
	=	24.8	/	28.965
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(28.965 - 4.132)	/	28.965
	=	85.73 %

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.

Siddharth Education Services (BOM:540736) 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

Siddharth Education Services had a gross margin of 85.73% for the quarter that ended in Mar. 2020 => 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.

Siddharth Education Services Gross Margin % Related Terms

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Siddharth Education Services (BOM:540736) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Siddharth Education Services Ltd (BOM:540736) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

101, First Floor, Chirag Arcade, E. R. ROAD, Behind Nagrik Stores, Near Ashok Cinema, Thane, MH, IND, 400 601

Website

http://www.siddharthacademy.in

Siddharth Education Services Ltd is engaged in providing tutorial coaching services for students of professional courses. The company offers tutorial services to C.S., C.A., and C.M.A under the brand name of Siddharth Academy. It is also engaged in the farming business. The company generates its revenue from Education Fees, Farming Activities, and Online Education Service.

Siddharth Education Services (BOM:540736) Headlines

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