EBIT
EBIT is the profit a company earns from its business before paying interest and taxes.
EBIT (Earnings Before Interest and Taxes) measures a company’s profitability from its core operations.
It shows how much profit the business generates before considering:
Interest on loans
Taxes
This helps investors understand how well the company is performing operationally.
Example:
If a company earns ₹10 crore in revenue and spends ₹7 crore on expenses, its EBIT will be ₹3 crore (before interest and taxes are deducted).