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Smart Money

Glossary

What is Net profit margin?

Net margin is net profit as a percentage of revenue: how much of each rupee of sales ends up as profit.

Net margin includes everything: costs, finance charges, other income and tax. It varies widely by industry; compare it with peers in the same sector.

Formula

Net margin = net profit ÷ revenue × 100

Net profit margin on the Pakistan Stock Exchange

Across 455 listed companies with the figure, the median is 4.9%.

Net profit margin of the largest PSX companies
Largest companiesNet profit margin
PIAHCLB PIA Holding Company LimitedB -170.5%
OGDC Oil & Gas Development Company Limited 54.0%
UBL United Bank Limited 31.5%
MEBL Meezan Bank Limited 32.0%
FFC Fauji Fertilizer Company Limited 17.6%