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Indostar Capital Finance (NSE:INDOSTAR) Gross Margin % : 19.19% (As of Mar. 2024)


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What is Indostar Capital Finance Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Indostar Capital Finance's Gross Profit for the three months ended in Mar. 2024 was ₹641 Mil. Indostar Capital Finance's Revenue for the three months ended in Mar. 2024 was ₹3,339 Mil. Therefore, Indostar Capital Finance's Gross Margin % for the quarter that ended in Mar. 2024 was 19.19%.

Warning Sign:

Indostar Capital Finance Ltd gross margin has been in long-term decline. The average rate of decline per year is -11.5%.


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

NSE:INDOSTAR' s Gross Margin % Range Over the Past 10 Years
Min: 20.61   Med: 40.49   Max: 51.11
Current: 20.61


During the past 11 years, the highest Gross Margin % of Indostar Capital Finance was 51.11%. The lowest was 20.61%. And the median was 40.49%.

NSE:INDOSTAR's Gross Margin % is ranked worse than
84.9% of 351 companies
in the Credit Services industry
Industry Median: 53.31 vs NSE:INDOSTAR: 20.61

Indostar Capital Finance had a gross margin of 19.19% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Indostar Capital Finance was -11.50% per year.


Indostar Capital Finance Gross Margin % Historical Data

The historical data trend for Indostar Capital Finance'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.

Indostar Capital Finance Gross Margin % Chart

Indostar Capital Finance 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 51.11 27.68 35.48 31.86 20.61

Indostar Capital Finance 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 43.33 24.17 19.78 19.60 19.19

Competitive Comparison of Indostar Capital Finance's Gross Margin %

For the Credit Services subindustry, Indostar Capital Finance'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.


Indostar Capital Finance's Gross Margin % Distribution in the Credit Services Industry

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

* The bar in red indicates where Indostar Capital Finance's Gross Margin % falls into.



Indostar Capital Finance Gross Margin % Calculation

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

Indostar Capital Finance'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 )
=2487.8 / 12068.3
=(Revenue - Cost of Goods Sold) / Revenue
=(12068.3 - 9580.5) / 12068.3
=20.61 %

Indostar Capital Finance'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 )
=640.5 / 3338.5
=(Revenue - Cost of Goods Sold) / Revenue
=(3338.5 - 2698) / 3338.5
=19.19 %

* 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.


Indostar Capital Finance  (NSE:INDOSTAR) 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

Indostar Capital Finance had a gross margin of 19.19% 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.


Indostar Capital Finance Gross Margin % Related Terms

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Indostar Capital Finance (NSE:INDOSTAR) Business Description

Traded in Other Exchanges
Address
Andheri- Ghatkopar Link Road, Unit No. 505, 5th Floor, Wing 2/E, Corporate Avenue, Chakala, Andheri (East), Mumbai, MH, IND, 400099
Indostar Capital Finance Ltd is a non-banking finance company. It is primarily engaged in providing bespoke Indian rupee denominated structured term financing solutions to corporate and loans to small and medium enterprise borrowers in India. The company operates four principal lines of business namely: Corporate lending, Small and Medium enterprise lending, Commercial vehicle lending, and Housing finance. It generally derives revenue in the form of fees and commission income, interest income on the loan portfolio, deposits with banks, investments in PTCs, and debt instruments. Geographically, the group generates key revenue from India.

Indostar Capital Finance (NSE:INDOSTAR) Headlines

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