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Kellton Tech Solutions (BOM:519602) Gross Margin % : 55.35% (As of Dec. 2023)


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What is Kellton Tech Solutions Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Kellton Tech Solutions's Gross Profit for the three months ended in Dec. 2023 was ₹1,359 Mil. Kellton Tech Solutions's Revenue for the three months ended in Dec. 2023 was ₹2,454 Mil. Therefore, Kellton Tech Solutions's Gross Margin % for the quarter that ended in Dec. 2023 was 55.35%.

Warning Sign:

Kellton Tech Solutions Ltd gross margin has been in long-term decline. The average rate of decline per year is -14%.


The historical rank and industry rank for Kellton Tech Solutions's Gross Margin % or its related term are showing as below:

BOM:519602' s Gross Margin % Range Over the Past 10 Years
Min: 48.94   Med: 95.51   Max: 98.82
Current: 52.55


During the past 13 years, the highest Gross Margin % of Kellton Tech Solutions was 98.82%. The lowest was 48.94%. And the median was 95.51%.

BOM:519602's Gross Margin % is ranked better than
61.06% of 2635 companies
in the Software industry
Industry Median: 41.84 vs BOM:519602: 52.55

Kellton Tech Solutions had a gross margin of 55.35% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Kellton Tech Solutions was -14.00% per year.


Kellton Tech Solutions Gross Margin % Historical Data

The historical data trend for Kellton Tech Solutions'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.

Kellton Tech Solutions Gross Margin % Chart

Kellton Tech Solutions Annual Data
Trend Jun14 Jun15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 97.34 97.04 98.11 48.94 49.94

Kellton Tech Solutions Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 51.71 47.06 50.72 57.11 55.35

Competitive Comparison of Kellton Tech Solutions's Gross Margin %

For the Software - Application subindustry, Kellton Tech Solutions'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.


Kellton Tech Solutions's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Kellton Tech Solutions's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Kellton Tech Solutions's Gross Margin % falls into.



Kellton Tech Solutions Gross Margin % Calculation

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

Kellton Tech Solutions's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )=Gross Profit (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=4581.2 / 9173.258
=(Revenue - Cost of Goods Sold) / Revenue
=(9173.258 - 4592.035) / 9173.258
=49.94 %

Kellton Tech Solutions's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=1358.6 / 2454.441
=(Revenue - Cost of Goods Sold) / Revenue
=(2454.441 - 1095.88) / 2454.441
=55.35 %

* 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.


Kellton Tech Solutions  (BOM:519602) 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

Kellton Tech Solutions had a gross margin of 55.35% for the quarter that ended in Dec. 2023 => 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.


Kellton Tech Solutions Gross Margin % Related Terms

Thank you for viewing the detailed overview of Kellton Tech Solutions's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Kellton Tech Solutions (BOM:519602) Business Description

Traded in Other Exchanges
Address
Road Number 45, Jubilee Hills, Plot Number 1367, Hyderabad, TG, IND, 500033
Kellton Tech Solutions Ltd is engaged in the provision of information technology (IT) services. The company operates through three segments which include Digital transformation, Enterprise Solutions, and Consulting. It generates maximum revenue from the Digital Transformation segment. The company serves construction; energy and utilities; healthcare; manufacturing; real estate; chemicals; distribution; food and beverage; oil and gas and other industries. It provides services such as Digital Commerce and Marketing; Digital Integration; Technology Consulting and others.

Kellton Tech Solutions (BOM:519602) Headlines

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