It was a simple example. Can do this for debt also.
Suppose 100 crores of incremental debt is taken and cranes are acquired. Assuming their is no time lag in acquiring after debt is taken and they get immediate delivery for simplicity.
From that the unit economics look like:
As per previous post, 20cr revenue, 12cr EBITDA.
Interest on 100cr according to me would be 9-12cr. Being optimistic and taking 9cr.
Gives us PBT 3cr and PAT/Cash flow of 2.25cr
But if we take into account effective depreciation, assuming 40 year life, 2.5cr will be depreciation which will be more than PAT/Cash flow. This is when we assume 9% interest on debt, but in reality is likely to be more.
Note: My personal rough calculations, might be errors