Is the company selling more than it did last year?
Sales (Revenue) Growth
Lesson 6 of 11 · Growth
Sales growth is how much a company's sales rose (or fell) compared with the year before.
In everyday life
Your stall sold ₹1,000 of lemonade last summer and ₹1,100 this summer. Sales grew by ₹100 on ₹1,000, which is 10%.
How it's worked out
Example: Sunrise Tea, a made-up company that sells packaged tea across India.
In words: Sales grew by ₹10 for every ₹100 sold last year.
Try it yourself
Move the sliders and watch the answer, the picture and the verdict change together.
Sales grew by ₹10 for every ₹100 sold last year.
- Increase in sales
- The rest
Each dot is 1 of every 100 in “last year's sales”.
Rough guide
- Slow
- Steady
- Fast
What's a good number?
- Slow
Up to 5%
- Steady
5% to 12%
- Fast
Above 12%
Prices rise about 5–6% a year in India. Sales growing slower than that mean the company is selling less in real terms.
Key number in the sector guides for IT services, Pharma and FMCG.
How to read it
Good signs
- Growth that comes from selling more units, not just raising prices.
- Profit growing at least as fast as sales.
Watch out for
- One very fast year after a bad year looks big but only gets the company back to where it was.
- Growth bought by buying other companies can hide a slow core business.
Read it with
For learning only. Example companies are made up, and the rough guides are rules of thumb, not targets. Nothing here is advice to buy or sell any stock.