Net profit (PAT)

The very last line of the P&L. Profit After Tax (PAT), also called Net Profit, or Net Income. This is the money that legally belongs to the equity shareholders after every cost - operating, financing, and tax - has been paid.

The chain in one sentence

Revenue → minus operating costs → EBITDA → minus depreciation → EBIT → plus other income → minus interest → PBT → minus tax → PAT.

What investors do with PAT

• EPS = PAT ÷ Number of shares outstanding. The per-share earning power.
• P/E ratio = Share price ÷ EPS. The valuation multiple.
• PAT margin = PAT ÷ Revenue. The whole P&L compressed into one number.
• Dividend is paid out of PAT (within statutory limits).
• Retained earnings = PAT − Dividend. This adds to reserves on the balance sheet next year.

The PAT trap

PAT is the most quoted, most headline-friendly number - and the easiest to manipulate. Real, durable earnings power is best read as the bottom of a clean chain: a healthy revenue growing meaningfully, decent gross margin, stable operating cost base, modest one-time items, normal tax rate.