Property, Plant and Equipment
Tangible long-lived assets used in operations, such as land, buildings, machinery and vehicles, shown net of accumulated depreciation.
Formula
Net Block = Gross Block - Accumulated Depreciation
Unit
₹ crore
In depth
The gross block records original cost while the net block records what remains unwritten-off, and the ratio between them says how old the asset base is. A net block that is a small fraction of gross block means assets are near the end of their accounting lives, and a wave of replacement capital expenditure is probably approaching. Land is not depreciated, so a company with substantial old land holdings carries them at decades-old cost. Comparing revenue to net block gives asset turnover, but the comparison is distorted whenever one company's assets are new and another's are fully depreciated.
Worked example
Gross block ₹900 crore against accumulated depreciation ₹630 crore gives a net block of ₹270 crore, meaning 70% of the asset base is written off. Replacement will require capital expenditure far above the current depreciation charge.
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 “Property, Plant and Equipment” 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.