Gross Margin % is calculated as gross profit divided by its revenue. Lyka Labs's Gross Profit for the
three
months ended in Mar. 2024 was ₹158 Mil. Lyka Labs's Revenue for the
three
months ended in Mar. 2024 was ₹278 Mil. Therefore, Lyka Labs's Gross Margin % for the quarter that ended in Mar. 2024 was 56.88%.
The historical rank and industry rank for Lyka Labs's Gross Margin % or its related term are showing as below:
BOM:500259'
s Gross Margin % Range Over the Past 10 Years
Min: 35.35 Med: 47.07 Max: 70.97
Current: 59.66
During the past 13 years, the highestGross Margin % of Lyka Labs was 70.97%. The lowest was 35.35%. And the median was 47.07%.
BOM:500259's Gross Margin % is ranked worse than 51% of 749
companies
in the Biotechnology industry
Industry Median: 60.9
vs BOM:500259: 59.66
Lyka Labs had a gross margin of 56.88% for the quarter that ended in Mar. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Lyka Labs was 12.80% per year.
Lyka Labs Gross Margin % Historical Data
The historical data trend for Lyka Labs'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.
Competitive Comparison of Lyka Labs's Gross Margin %
For the Biotechnology subindustry, Lyka Labs'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.
Lyka Labs's Gross Margin % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Lyka Labs's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lyka Labs's Gross Margin % falls into.
* 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.
Lyka Labs (BOM:500259) 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
Lyka Labs had a gross margin of 56.88% for the quarter that ended in Mar. 2024 => 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.
Lyka Labs Gross Margin % Related Terms
Thank you for viewing the detailed overview of Lyka Labs's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Lyka Labs Ltd is an Indian biotechnology company. It mainly engages in the development of specialized formulations. The Company is engaged in only one segment viz. pharmaceuticals. The Company has presence in Domestic as well as International markets. The commercialized formulations of the company consist of hair care, anti-aging, acne management, skin lightening, face washes, sunscreens, facial scrubs, and others. It has developed a varied drug delivery system for topical steroids, painkillers, anti-fungal, and other emollients as well as liquid injectables, lyophilized injectables in the anti-bacterial, antifungal segment. The company also manufactures proton pump inhibitors, antibiotics, antifungals, steroids, etc. The majority of the company's revenue comes from India.
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