REDFY (Rediff.com India) Gross Margin %: 33.04% (As of Sep. 2015)


What is Rediff.com India Gross Margin %?

Rediff.com India REDFY Gross Margin % is 33.04% as of Sep. 2015.

Gross Margin % is calculated as gross profit divided by its revenue. Rediff.com India's Gross Profit for the three months ended in Sep. 2015 was $1.13 Mil. Rediff.com India's Revenue for the three months ended in Sep. 2015 was $3.42 Mil. Therefore, Rediff.com India's Gross Margin % for the quarter that ended in Sep. 2015 was 33.04%.


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


REDFY's Gross Margin % is not ranked *
in the Interactive Media industry.
Industry Median: 62.58
* Ranked among companies with meaningful Gross Margin % only.

Rediff.com India had a gross margin of 33.04% for the quarter that ended in Sep. 2015 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Rediff.com India was 0.00% per year.


Rediff.com India  (OTCPK:REDFY) 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

Rediff.com India had a gross margin of 33.04% for the quarter that ended in Sep. 2015 => 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.


Rediff.com India Gross Margin % Related Terms


Rediff.com India Gross Margin % Historical Data

* Premium members only.

The historical data trend for Rediff.com 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.

Rediff.com India Gross Margin % Chart

Rediff.com India Annual Data
Trend Mar06 Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 50.47 45.97 36.45 35.41 29.35

Rediff.com India Quarterly Data
Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15
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 25.51 36.51 28.57 33.04 25.07

REDFY vs LIVC, FPTA, CXKJ: Gross Margin % Comparison

For the Internet Content & Information subindustry, Rediff.com 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.


Rediff.com India Gross Margin % vs Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Rediff.com India's Gross Margin % distribution charts can be found below:

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



Rediff.com India Gross Margin % Calculation

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

Rediff.com India's Gross Margin for the fiscal year that ended in Mar. 2015 is calculated as

Gross Margin % (A: Mar. 2015 )=Gross Profit (A: Mar. 2015 ) / Revenue (A: Mar. 2015 )
=4.5 / 15.338
=(Revenue - Cost of Goods Sold) / Revenue
=(15.338 - 10.836) / 15.338
=29.35 %

Rediff.com India's Gross Margin for the quarter that ended in Sep. 2015 is calculated as


Gross Margin % (Q: Sep. 2015 )=Gross Profit (Q: Sep. 2015 ) / Revenue (Q: Sep. 2015 )
=1.1 / 3.42
=(Revenue - Cost of Goods Sold) / Revenue
=(3.42 - 2.29) / 3.42
=33.04 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 33.04% mean?
Rediff.com India (REDFY) has a Gross Margin % of 33.04% as of Sep. 2015. Gross margin is the ratio of total gross profit to net sales. View historical data on Rediff.com India and its competitors.
Is Rediff.com India's Gross Margin % too high?
Rediff.com India's current Gross Margin % is 33.04%. The Interactive Media industry median Gross Margin % is 62.58. Rediff.com India's value of 33.04% is 47.2% below this industry median.
How does Rediff.com India's Gross Margin % compare to LIVC and FPTA?
Rediff.com India's Gross Margin % of 33.04% can be compared against companies in the Interactive Media industry. The industry median Gross Margin % is 62.58. Rediff.com India's value of 33.04% is 47.2% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Interactive Media company?
The median Gross Margin % among Interactive Media companies is 62.58, based on 497 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rediff.com India's current Gross Margin % of 33.04% is 47.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Rediff.com India and its competitors. For the Interactive Media industry, the median Gross Margin % is 62.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rediff.com India's current Gross Margin % is 33.04%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rediff.com India stock overvalued right now?
Rediff.com India (REDFY) has a current Gross Margin % of 33.04%. The current Gross Margin % is 33.04% and 47.2% below the Interactive Media industry median of 62.58. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Rediff.com India (REDFY), the current Gross Margin % is 33.04% as of Sep. 2015. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Rediff.com India Business Description

Address Junction of Tilak Road and 1st Gaothan Lane, Level 10, Seasons Riddhi Siddhi, Santacruz West, Mumbai, MH, IND, 400054
Rediff.com India Ltd is engaged in the business of providing Software as a Service (SaaS) including email and related services, news and information services, and enterprise email solutions. These services are delivered across various platforms such as PCs, tablets, and a wide range of mobile devices. The company operates in a single operating segment of providing Software as a Service(SaaS). It generates revenue from the sale of its services.