Break-Even Analysis
Utilization thresholds and sensitivity analysis for profitability.
Key Parameters
| Parameter | Value |
|---|---|
| Monthly Fixed Costs | ₹54,48,500 |
| Base Monthly Revenue (100%) | ₹90,28,500 |
| Variable Cost Ratio | 45% |
| Contribution Margin | 55% |
A. Break-Even by Utilization Rate
| Scenario | Utilization | Days/Month | Monthly Revenue (₹) | Fixed Costs (₹) | Variable Costs (₹) | Net Income (₹) |
|---|---|---|---|---|---|---|
| Survival Mode | 75% | 22.5 | 67,71,375 | 54,48,500 | 30,47,119 | -17,24,244 |
| Cash Positive | 100% | 30.0 | 90,28,500 | 54,48,500 | 40,62,825 | -4,82,825 |
| Debt Service | 125% | 37.5 | 1,12,85,625 | 54,48,500 | 50,78,531 | +7,58,594 |
| Full Profitability | 150% | 45.0 | 1,35,42,750 | 54,48,500 | 60,94,238 | +20,00,013 |
Visual Break-Even Chart
Utilization Net Income
│
150%│ ████ +₹20.0 L
│ ██████
125%│ ██████ +₹7.6 L
│ ██████
100%│────────────█████─────────────────── -₹4.8 L (BE Point ≈ 110%)
│ ██████
75%│██████ -₹17.2 L
│
└──────────────────────────────────────────
Loss | Profit
Critical Success Metrics
| Metric | Threshold | Implication |
|---|---|---|
| Minimum Viability | 75% (22.5 days/month) | Cover operating costs, partial debt |
| Cash Flow Positive | 100% (30 days/month) | Cover all costs, minimal profit |
| Debt Service Met | 125% (37.5 days/month) | Full debt service + operations |
| Full ROI Target | 150% (45 days/month) | Investor returns + growth capital |
B. Sensitivity Analysis
Impact of utilization changes on annual profitability.
| Variable Change | Utilization | Annual Revenue (₹ Cr) | Annual Profit (₹ Cr) | IRR |
|---|---|---|---|---|
| -20% | 80% | 8.66 | -2.34 | -5% |
| -10% | 90% | 9.75 | 0.15 | 8% |
| Base | 100% | 10.83 | 2.63 | 18% |
| +10% | 110% | 11.92 | 5.12 | 27% |
| +20% | 120% | 13.00 | 7.60 | 35% |
Sensitivity Tornado Chart
-20% -10% Base +10% +20%
│ │ │ │ │
IRR -5% ════╪═══════╪═══════╪═══════╪════ 35%
│ │ │ │ │
Profit -2.34 ════╪═══════╪═══════╪═══════╪════ 7.60
│ │ │ │ │
Revenue 8.66 ════╪═══════╪═══════╪═══════╪════ 13.00
│ │ │ │ │
C. Break-Even Timeline
| Scenario | Monthly BE Point | Annual BE | Cumulative BE |
|---|---|---|---|
| Conservative | Month 42 | Year 4.2 | ₹35.0 Cr revenue |
| Realistic | Month 31 | Year 3.1 | ₹33.4 Cr revenue |
| Optimistic | Month 23 | Year 2.3 | ₹30.8 Cr revenue |
D. Risk Zones
| Zone | Utilization Range | Financial Status | Action Required |
|---|---|---|---|
| 🔴 Critical | Below 60% | Cash burn, survival risk | Emergency measures |
| 🟠 Warning | 60-80% | Operating losses | Corrective action |
| 🟡 Caution | 80-100% | Marginal profitability | Optimization focus |
| 🟢 Healthy | 100-125% | Profitable operations | Maintain & grow |
| 🔵 Optimal | Above 125% | Strong returns | Scale & reinvest |
E. Daily Rate Sensitivity
Impact of pricing changes (at 100% utilization):
| Rate Change | Avg Daily Rate | Annual Revenue | Annual Profit | IRR Change |
|---|---|---|---|---|
| -10% | ₹4,500 | ₹9.75 Cr | ₹0.82 Cr | -4% |
| Base | ₹5,000 | ₹10.83 Cr | ₹2.63 Cr | 18% |
| +10% | ₹5,500 | ₹11.92 Cr | ₹4.44 Cr | +5% |
| +20% | ₹6,000 | ₹13.00 Cr | ₹6.25 Cr | +9% |