Net Profit Margin in Metals & Mining
How to interpret and apply net profit margin specifically when analyzing metals & mining stocks in India.
Quick Recap: What is Net Profit Margin?
Net profit margin is the percentage of revenue that becomes actual profit after ALL expenses — taxes, interest, depreciation, and everything else.
Net Profit Margin = Net Income ÷ Revenue × 100
How Net Profit Margin Works Differently in Metals & Mining
Highly cyclical, commodity-price driven, capital intensive, global demand sensitive, China impact.
Typical Ranges for Metals & Mining
Typical ROE (profitability proxy)8-20% (swings with commodity cycles)
General benchmark: IT: 15-25%, Banking: 15-25%, FMCG: 10-20%, Manufacturing: 5-15%
Example Metals & Mining Companies to Analyze
Use the Equiscale Screener → to filter metals & mining stocks by net profit margin and other metrics.
Key Takeaways
- Net Profit Margin in metals & mining should be compared against sector peers, not the market average.
- Sector characteristics: Highly cyclical, commodity-price driven, capital intensive, global demand sensitive, China impact.
- Always cross-check with other metrics. No single ratio tells the full story.