Net Profit
The profit remaining after every expense, including interest and tax, has been deducted from income.
Formula
Net Profit = Profit Before Tax - Tax Expense
Unit
₹ crore
In depth
Net profit is the bottom line and the numerator of earnings per share, which makes it the most quoted and most manipulated figure in the accounts. It is an accrual number, so it can be positive while the company is running out of cash, and it can be depressed by non-cash charges while the business generates plenty. For a consolidated group, the figure that belongs to shareholders is net profit after deducting non-controlling interests, and using the pre-deduction number inflates earnings per share. Quality matters more than level: profit backed by operating cash flow is worth far more than the same number backed by receivables.
Worked example
Profit before tax ₹120 crore less tax ₹30 crore gives net profit ₹90 crore. If ₹15 crore of that belongs to minority shareholders in a subsidiary, only ₹75 crore is attributable to the parent's shareholders — the figure that should drive EPS.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Net Profit” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.