Glossarytaught in M1.02, M2.06
Discontinued operations
Also called discontinued operation, held for sale.
A part of a company that has been sold or is held for sale and represents a separate major line of business or geographical area. Its results are pulled out of every line above and shown as one figure, profit from discontinued operations, below profit from continuing operations.
A company reporting ₹615 crore of net profit, of which ₹75 crore came from a division it has agreed to sell, earns ₹540 crore from the businesses it will keep. That ₹540 crore is the base for forecasting, and the prior year is restated on the same basis so that growth is measured like for like.
Read the note for two things. The gain or loss on the sale itself is included in the discontinued figure, so a large disposal gain can make a weak year look strong. And the label has a threshold: closing a few plants or a minor product line doesn't qualify, and those costs stay in continuing operations.
Forecast from continuing operations only.
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