DFL=EBIT/{EBIT-I-Dp/(1-t)}

DCL=DOL*DFL
BEP=I+{Dp/(1-t)}
(All in Rs. Crores)
Year
EBIT (X)

2010
321.24

2009
102.98

2008
162.58

2007
-799.68

2006
-590.11

Interest
EBITInterest (Y)
DFL (X/Y)

6.96
314.28
1.02

6.62
96.38
1.07

5.96
156.62
1.04

7.33
-807.01
0.99

4.6
-594.71
0.99

2008
3.73
1.04
3.73
6.07

2007
0.53
0.99
0.53
5.46

2006
0.41
0.99
0.41
2.05

Year
DOL (A)
DFL (B)
DCL (A*B)
EPS

2010
3.43
1.02
3.5
10.08

Year

2009
7.12
1.07
7.62
7.37

2010
781.95

Total fixed cost

2009
630.01

2008
444.63

2007
377.06

2006
348.57

FINANCIAL BREAK-EVEN POINT

BEP= Interest + preference dividend/(1-tax)
In this case, there is no preference dividend provided. Hence the minimum level of EBIT to be
achieved in order to meet the financial commitment that is the interest is as follows
Year
BEP=Interest

2010

2009

2008

2007

2006

6.96

6.62

5.96

7.33

4.6