• Revenue Growth is very important. If there is no revenue growth then there could not be profitable growth. • In some cases of chemical pharma companies, the revenue growth is not that good but the profit growth is more. • Hence people are getting more excited as the PE ratio has improved. As PE ratios are on profits not on revenue. • But we need to understand if the revenue is not increasing how can the profits going to get increase. • Hence Profit growth and revenue growth both are important. • Revenue growth is more important in long term, profit growth is about growth and efficiency. • So we need to understand what the management is focusing well on profit generation or revenue generation.