One group. One year. Three different profit numbers.
A parent owns 60 percent of one subsidiary. Watch the same twelve months get reported three ways, and which one is actually yours.
| The same year, one group | Rs crore |
|---|
| Parent's own business | 40 |
| Plus the subsidiary, in full | 100 |
| Equals consolidated profit, total | 140 |
| Less minority, the 40 percent not owned | 40 |
| Equals profit attributable to owners | 100 |
The parent's standalone statement, the company on its own, shows just Rs 45 crore. On its own it counts the subsidiary as an investment plus the Rs 5 crore dividend it sent up, never the Rs 100 crore it actually earned. So one company reports three profits for one year. Standalone 45. Consolidated 140. And the honest one, yours, 100. On a Rs 1500 crore market value that is a P/E of roughly 33, 11, or 15. Same stock. Read the wrong line and it looks wildly dear or suspiciously cheap.