Hello All,
I wanted to understand how to think of tax loss carry forward. Below I have the P&L of Tata Motors. As we can see that the company did not make money from 2018 to 2022 and had a negative net profit. Some were due to write-offs.
Will the tax losses be offset against the profit that the company generates ? If yes, how long can they use the losses as an offset ? What are the categories of losses that cannot be offset ?
Usually which quarter of a financial year benefits the most from such offset considering advance tax etc.?
In such conditions can we consider the PBT as a better proxy to calculate various valuation metric ?
Also any good resource which I could read to get better clarity of the topic. I am not from a finance background, but learning.
Thank You
Gourab
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