Fone4 Communications (India) (BOM:543521) Gross Margin % : 0.33% (As of Sep. 2023)

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What is Fone4 Communications (India) Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Fone4 Communications (India)'s Gross Profit for the six months ended in Sep. 2023 was ₹2 Mil. Fone4 Communications (India)'s Revenue for the six months ended in Sep. 2023 was ₹641 Mil. Therefore, Fone4 Communications (India)'s Gross Margin % for the quarter that ended in Sep. 2023 was 0.33%.

The historical rank and industry rank for Fone4 Communications (India)'s Gross Margin % or its related term are showing as below:

BOM:543521' s Gross Margin % Range Over the Past 10 Years
Min: -0.53 Med: 9.27 Max: 13.19
Current: -0.47

During the past 5 years, the highest Gross Margin % of Fone4 Communications (India) was 13.19%. The lowest was -0.53%. And the median was 9.27%.

BOM:543521's Gross Margin % is ranked worse than
98.72% of 1096 companies
in the Retail - Cyclical industry
Industry Median: 36.485 vs BOM:543521: -0.47

Fone4 Communications (India) had a gross margin of 0.33% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Fone4 Communications (India) was 0.00% per year.

Fone4 Communications (India) Gross Margin % Historical Data

The historical data trend for Fone4 Communications (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.

* Premium members only.

Fone4 Communications (India) Gross Margin % Chart

Fone4 Communications (India) Annual Data

Trend

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

5.90

9.27

12.82

13.19

-0.53

Fone4 Communications (India) Semi-Annual Data
	Mar19	Mar20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Gross Margin %	Get a 7-Day Free Trial			10.59	16.03	2.29	-1.09	0.33

Competitive Comparison of Fone4 Communications (India)'s Gross Margin %

For the Internet Retail subindustry, Fone4 Communications (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.

Fone4 Communications (India)'s Gross Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Fone4 Communications (India)'s Gross Margin % distribution charts can be found below:

* The bar in red indicates where Fone4 Communications (India)'s Gross Margin % falls into.

Fone4 Communications (India) Gross Margin % Calculation

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

Fone4 Communications (India)'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 )
	=	-5.3	/	1004.788
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1004.788 - 1010.106)	/	1004.788
	=	-0.53 %

Fone4 Communications (India)'s Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	2.1	/	640.883
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(640.883 - 638.745)	/	640.883
	=	0.33 %

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.

Fone4 Communications (India) (BOM:543521) 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

Fone4 Communications (India) had a gross margin of 0.33% for the quarter that ended in Sep. 2023 => 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.

Fone4 Communications (India) Gross Margin % Related Terms

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Fone4 Communications (India) (BOM:543521) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Fone4 Communications (India) Ltd (BOM:543521) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Door No. 34/664, Omar Square, Ground Floor, Toll Jn Edappally, Ernakulam, KL, IND, 682024

Website

https://www.fone4.in

Fone4 Communications (India) Ltd is an online electronic e-commerce company. It distributes a wide range of products online and offline such as electronic gadgets and accessories for Smart Phones, Laptops, Smart Television and others from major manufacturers such as Apple, Samsung, Oppo, Vivo, Xiaomi, Nokia, Redmi, Techno, Karbonn, One Plus, Dell, Lenovo, Asus, HP, Acer, Avita, TCL, Xiaomi, LG, and Sansui.

Fone4 Communications (India) (BOM:543521) Headlines

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