Name: Gross Profit Margin

Definition: Gross profit margin shows how much profit the company keeps from each dollar of sales after covering the direct cost of making its products or delivering services. High margins suggest strong pricing power or efficient production. Shrinking margins might mean rising costs or tougher competition eating into profits.

Interpretation:
• In '2021', LGCL's gross profit margin was 27.5%, showing profitability after production and operational costs. Industry average for Computer Software: Programming Data Processing in '2021' stood at 53.8%.
• In '2022', LGCL's gross profit margin was 28.1%, showing profitability after production and operational costs. The increase since '2021' reflects strengthening financial performance. Industry average for Computer Software: Programming Data Processing in '2022' stood at 31.7%. Industry average declined by 22.1% from previous year.
• In '2023', LGCL's gross profit margin was 28.4%, showing profitability after production and operational costs. The increase since '2022' reflects strengthening financial performance. Industry average for Computer Software: Programming Data Processing in '2023' stood at 49.7%. Industry average increased by 18.0% compared to previous year.
• In '2024', LGCL's gross profit margin was 33.6%, showing profitability after production and operational costs. The increase since '2023' reflects strengthening financial performance. Industry average for Computer Software: Programming Data Processing in '2024' stood at 52.6%. Industry average increased by 2.9% compared to previous year.
Overall, LGCL's gross profit margin has steadily improved over the past 4 years.

Formula: Gross Profit Margin = (Revenue - COGS) / Revenue

Good Range: Often 20%-60% depending on industry.