Question
A company reports Sales of ₹200 crore, EBIT of ₹30
crore, Interest of ₹10 crore and Tax of ₹6 crore. The bank wants to assess bottom‑line profitability as a percentage of turnover. What is the Net Profit Margin of the company?Solution
Net Profit = 30 – 10 – 6 = 14. Net Profit Margin = 14 / 200 = 7%.
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