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Vertoz Advertising (NSE:VERTOZ) Gross Margin % : 38.84% (As of Mar. 2024)


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What is Vertoz Advertising Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Vertoz Advertising's Gross Profit for the three months ended in Mar. 2024 was ₹111 Mil. Vertoz Advertising's Revenue for the three months ended in Mar. 2024 was ₹286 Mil. Therefore, Vertoz Advertising's Gross Margin % for the quarter that ended in Mar. 2024 was 38.84%.

Warning Sign:

Vertoz Advertising Ltd gross margin has been in long-term decline. The average rate of decline per year is -8.9%.


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

NSE:VERTOZ' s Gross Margin % Range Over the Past 10 Years
Min: 26.91   Med: 44.16   Max: 65.69
Current: 26.91


During the past 9 years, the highest Gross Margin % of Vertoz Advertising was 65.69%. The lowest was 26.91%. And the median was 44.16%.

NSE:VERTOZ's Gross Margin % is ranked worse than
68.8% of 955 companies
in the Media - Diversified industry
Industry Median: 38.36 vs NSE:VERTOZ: 26.91

Vertoz Advertising had a gross margin of 38.84% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Vertoz Advertising was -8.90% per year.


Vertoz Advertising Gross Margin % Historical Data

The historical data trend for Vertoz Advertising'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.

Vertoz Advertising Gross Margin % Chart

Vertoz Advertising Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 41.27 36.82 48.69 40.28 26.91

Vertoz Advertising 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 28.07 25.09 28.75 20.59 38.84

Competitive Comparison of Vertoz Advertising's Gross Margin %

For the Advertising Agencies subindustry, Vertoz Advertising'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.


Vertoz Advertising's Gross Margin % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Vertoz Advertising's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Vertoz Advertising's Gross Margin % falls into.



Vertoz Advertising Gross Margin % Calculation

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

Vertoz Advertising'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 )
=418 / 1553.664
=(Revenue - Cost of Goods Sold) / Revenue
=(1553.664 - 1135.63) / 1553.664
=26.91 %

Vertoz Advertising'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 )
=110.9 / 285.621
=(Revenue - Cost of Goods Sold) / Revenue
=(285.621 - 174.685) / 285.621
=38.84 %

* 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.


Vertoz Advertising  (NSE:VERTOZ) 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

Vertoz Advertising had a gross margin of 38.84% for the quarter that ended in Mar. 2024 => Competition eroding margins


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.


Vertoz Advertising Gross Margin % Related Terms

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Vertoz Advertising (NSE:VERTOZ) Business Description

Traded in Other Exchanges
N/A
Address
LBS Marg, 602, Avior, Nirmal Galaxy, Opposite Johnson and Johnson, Mulund West, Mumbai, MH, IND, 400080
Vertoz Advertising Ltd is a programmatic advertising company and offers advertising and other allied services to domestic/ overseas clients. The company's software platform offers real-time trading of digital advertising inventory between advertisers and publishers. It has only one Segment being Programmatic Advertising Business. The company operates in India.

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