Fedbank Financial Services (BOM:544027) Gross Margin % : 39.34% (As of Dec. 2024)

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What is Fedbank Financial Services Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Fedbank Financial Services's Gross Profit for the three months ended in Dec. 2024 was ₹2,072 Mil. Fedbank Financial Services's Revenue for the three months ended in Dec. 2024 was ₹5,267 Mil. Therefore, Fedbank Financial Services's Gross Margin % for the quarter that ended in Dec. 2024 was 39.34%.

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

BOM:544027' s Gross Margin % Range Over the Past 10 Years
Min: 35.93 Med: 37.61 Max: 40.02
Current: 37.96

During the past 4 years, the highest Gross Margin % of Fedbank Financial Services was 40.02%. The lowest was 35.93%. And the median was 37.61%.

BOM:544027's Gross Margin % is ranked worse than
69.02% of 368 companies
in the Credit Services industry
Industry Median: 55.355 vs BOM:544027: 37.96

Fedbank Financial Services had a gross margin of 39.34% for the quarter that ended in Dec. 2024 => Competition eroding margins

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

Fedbank Financial Services Gross Margin % Historical Data

The historical data trend for Fedbank 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.

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Fedbank Financial Services Gross Margin % Chart

Fedbank Financial Services Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

Gross Margin %

36.02

40.02

39.20

35.93

Fedbank Financial Services Quarterly Data
	Mar21	Mar22	Jun22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Gross Margin %	Get a 7-Day Free Trial							35.22	39.69	36.33	36.78	39.34

Competitive Comparison of Fedbank Financial Services's Gross Margin %

For the Credit Services subindustry, Fedbank 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.

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

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

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

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Fedbank Financial Services Gross Margin % Calculation

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

Fedbank 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 )
	=	5469.7	/	15224.8
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(15224.8 - 9755.1)	/	15224.8
	=	35.93 %

Fedbank Financial Services's Gross Margin for the quarter that ended in Dec. 2024 is calculated as

Gross Margin % (Q: Dec. 2024 )	=	Gross Profit (Q: Dec. 2024 )	/	Revenue (Q: Dec. 2024 )
	=	2071.9	/	5266.5
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(5266.5 - 3194.6)	/	5266.5
	=	39.34 %

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.

Fedbank Financial Services (BOM:544027) 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

Fedbank Financial Services had a gross margin of 39.34% for the quarter that ended in Dec. 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.

Fedbank Financial Services Gross Margin % Related Terms

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Fedbank Financial Services Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Fedbank Financial Services Ltd (BOM:544027) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

FEDFINA:India

Address

Paspoli, Plot No. 71 A, Unit No. 1101, 11th Floor, Cignus, Powai, Mumbai, MH, IND, 400087

Website

https://www.fedfina.com

Fedbank Financial Services Ltd is a retail-focused non-banking finance company. It is focused on catering to the MSMEs and the emerging self-employed individuals (ESEIs) sector. It has a well-tailored suite of products targeted to match its customers' needs, which includes mortgage loans such as housing loans; small ticket loans against property (LAP); medium ticket LAP, unsecured business loans, and gold loans. It also has a Phygital doorstep model, a combination of digital and physical initiatives, for providing customized services to its customers across all of its products. The company's operations are classified into three business segments; the Retail Finance segment which derives the majority of its revenue, Distribution segment, and the Wholesale Finance segment.

Fedbank Financial Services Headlines

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