Revenue and profit — the two numbers that matter
Revenue (or sales/income) = all the money a
company collected. Profit (PAT — profit after tax) = what's left after paying all costs and taxes.
A company can have huge revenue and still lose money if costs are higher!
Your lemonade stand collects ₹100 (revenue). Lemons, sugar and cups cost ₹70.
Your profit is ₹30. The ₹30 is what makes the stand valuable — not the ₹100.