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Cadsys (India) (NSE:CADSYS) Gross Margin % : 54.54% (As of Sep. 2023)


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What is Cadsys (India) Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Cadsys (India)'s Gross Profit for the six months ended in Sep. 2023 was ₹589 Mil. Cadsys (India)'s Revenue for the six months ended in Sep. 2023 was ₹1,080 Mil. Therefore, Cadsys (India)'s Gross Margin % for the quarter that ended in Sep. 2023 was 54.54%.

Warning Sign:

Cadsys (India) Ltd gross margin has been in long-term decline. The average rate of decline per year is -17.7%.


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

NSE:CADSYS' s Gross Margin % Range Over the Past 10 Years
Min: 21.88   Med: 45.34   Max: 59.63
Current: 37.42


During the past 11 years, the highest Gross Margin % of Cadsys (India) was 59.63%. The lowest was 21.88%. And the median was 45.34%.

NSE:CADSYS's Gross Margin % is ranked worse than
55.58% of 2636 companies
in the Software industry
Industry Median: 41.84 vs NSE:CADSYS: 37.42

Cadsys (India) had a gross margin of 54.54% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Cadsys (India) was -17.70% per year.


Cadsys (India) Gross Margin % Historical Data

The historical data trend for Cadsys (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.

Cadsys (India) Gross Margin % Chart

Cadsys (India) Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 54.93 31.84 21.88 23.39 27.38

Cadsys (India) Semi-Annual Data
Mar13 Mar14 Mar15 Mar16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 24.86 24.73 38.81 19.10 54.54

Competitive Comparison of Cadsys (India)'s Gross Margin %

For the Information Technology Services subindustry, Cadsys (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.


Cadsys (India)'s Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Cadsys (India)'s Gross Margin % distribution charts can be found below:

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



Cadsys (India) Gross Margin % Calculation

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

Cadsys (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 )
=476.8 / 1741.546
=(Revenue - Cost of Goods Sold) / Revenue
=(1741.546 - 1264.746) / 1741.546
=27.38 %

Cadsys (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 )
=589.1 / 1080.096
=(Revenue - Cost of Goods Sold) / Revenue
=(1080.096 - 490.989) / 1080.096
=54.54 %

* 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.


Cadsys (India)  (NSE:CADSYS) 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

Cadsys (India) had a gross margin of 54.54% for the quarter that ended in Sep. 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.


Cadsys (India) Gross Margin % Related Terms

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Cadsys (India) (NSE:CADSYS) Business Description

Traded in Other Exchanges
N/A
Address
3-6-262 2nd Floor Tirumala Estates, Himayathnagar, Hyderabad, TG, IND, 500029
Cadsys (India) Ltd is a knowledge process outsourcing company, that provides knowledge solutions. It is engaged in providing IT-enabled services for geospatial, field engineering survey, software development, and engineering design in the telecom, CATV, oil and gas, electricity, and other utility domains. It earns revenue from data processing activities including report writing. The company offers a product named Concord-Pro.

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