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Varanium Cloud (NSE:CLOUD) Gross Margin % : 36.26% (As of Sep. 2023)


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What is Varanium Cloud Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Varanium Cloud's Gross Profit for the three months ended in Sep. 2023 was ₹749 Mil. Varanium Cloud's Revenue for the three months ended in Sep. 2023 was ₹2,067 Mil. Therefore, Varanium Cloud's Gross Margin % for the quarter that ended in Sep. 2023 was 36.26%.


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

NSE:CLOUD' s Gross Margin % Range Over the Past 10 Years
Min: 33.17   Med: 49.72   Max: 66.26
Current: 34.31


During the past 4 years, the highest Gross Margin % of Varanium Cloud was 66.26%. The lowest was 33.17%. And the median was 49.72%.

NSE:CLOUD's Gross Margin % is ranked worse than
59.45% of 2629 companies
in the Software industry
Industry Median: 41.79 vs NSE:CLOUD: 34.31

Varanium Cloud had a gross margin of 36.26% for the quarter that ended in Sep. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Varanium Cloud was 0.00% per year.


Varanium Cloud Gross Margin % Historical Data

The historical data trend for Varanium Cloud'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.

Varanium Cloud Gross Margin % Chart

Varanium Cloud Annual Data
Trend Mar20 Mar21 Mar22 Mar23
Gross Margin %
- - 66.26 33.17

Varanium Cloud Quarterly Data
Mar20 Mar21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 11.34 38.70 28.85 33.94 36.26

Competitive Comparison of Varanium Cloud's Gross Margin %

For the Information Technology Services subindustry, Varanium Cloud'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.


Varanium Cloud's Gross Margin % Distribution in the Software Industry

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

* The bar in red indicates where Varanium Cloud's Gross Margin % falls into.



Varanium Cloud Gross Margin % Calculation

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

Varanium Cloud'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 )
=1271.7 / 3833.634
=(Revenue - Cost of Goods Sold) / Revenue
=(3833.634 - 2561.978) / 3833.634
=33.17 %

Varanium Cloud'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 )
=749.5 / 2067.181
=(Revenue - Cost of Goods Sold) / Revenue
=(2067.181 - 1317.696) / 2067.181
=36.26 %

* 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.


Varanium Cloud  (NSE:CLOUD) 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

Varanium Cloud had a gross margin of 36.26% for the quarter that ended in Sep. 2023 => 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.


Varanium Cloud Gross Margin % Related Terms

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Varanium Cloud (NSE:CLOUD) Business Description

Traded in Other Exchanges
Address
Versova SVP Nagar, Third Floor, Plot No. 244-A RDP 2, CTS 1374/B Vil, Four Bungalows, Andheri West, Mumbai, MH, IND, 400053
Varanium Cloud Ltd is a technology company focused on providing services surrounding the digital audio, video, and financial blockchain (for PayFac) based streaming services. The company operates in the following key verticals which are Provision of digital audio and video content streaming services to various content owners and telecom operators in India and internationally on a SaaS (Software As A Service) model such as Voice & Video over Internet Protocol solutions (VoIP) in the B2B and B2C segments, Online payment facilitation services (PayFac) and Provision of low bandwidth digital education content platforms (EdTech) with complete Learning Management Systems (LMS) focused on non-urban areas under Edmission brand.

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