Glossarytaught in M2.01
Net profit margin
Also called net margin, PAT margin.
Net profit divided by revenue. What survives from each rupee of sales after every cost.
Take an exporter earning ₹615 crore on ₹4,800 crore of revenue. It runs a 12.8% net margin.
Because it comes after interest and tax, the net margin mixes trading performance with financing and tax choices. A margin that improved because the company refinanced debt at a lower rate is a real improvement for shareholders and tells you nothing about the products.
Compare it with the operating margin trend to see which is which.