Measures the percentage of revenue remaining after all expenses, taxes, and interest.

What it Measures ?

How much profit we keep from each rupee earned.

Relevant StakeHolders 

CFO, Board Members

In-depth Use Case / Real-world Example

Net Profit Margin is calculated by dividing net profit by revenue. For example, if a company generates ₹1,000,000 in revenue and ₹100,000 in net profit, the net profit margin is 10%. This metric provides insight into a company’s overall profitability, financial health, and cost management. Companies with higher net profit margins can generate more profit for every rupee of sales.