diff --git a/erpnext/projects/report/profitability/__init__.py b/erpnext/projects/report/profitability/__init__.py
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/erpnext/projects/report/profitability/__init__.py
diff --git a/erpnext/projects/report/profitability/profitability.js b/erpnext/projects/report/profitability/profitability.js
new file mode 100644
index 0000000..dbf9187
--- /dev/null
+++ b/erpnext/projects/report/profitability/profitability.js
@@ -0,0 +1,32 @@
+// Copyright (c) 2016, Frappe Technologies Pvt. Ltd. and contributors
+// For license information, please see license.txt
+/* eslint-disable */
+
+frappe.query_reports["Profitability"] = {
+	"filters": [
+		{
+			"fieldname": "start_date",
+			"label": __("Start Date"),
+			"fieldtype": "Date",
+			"reqd": 1
+		},
+		{
+			"fieldname": "end_date",
+			"label": __("End Date"),
+			"fieldtype": "Date",
+			"reqd": 1
+		},
+		{
+			"fieldname": "customer_name",
+			"label": __("Customer"),
+			"fieldtype": "Link",
+			"options": "Customer"
+		},
+		{
+			"fieldname": "employee",
+			"label": __("Employee"),
+			"fieldtype": "Link",
+			"options": "Employee"
+		}
+	]
+};
diff --git a/erpnext/projects/report/profitability/profitability.json b/erpnext/projects/report/profitability/profitability.json
new file mode 100644
index 0000000..4f91acc
--- /dev/null
+++ b/erpnext/projects/report/profitability/profitability.json
@@ -0,0 +1,39 @@
+{
+ "add_total_row": 0,
+ "columns": [],
+ "creation": "2021-03-18 10:19:40.124932",
+ "disable_prepared_report": 0,
+ "disabled": 0,
+ "docstatus": 0,
+ "doctype": "Report",
+ "filters": [],
+ "idx": 0,
+ "is_standard": "Yes",
+ "json": "{}",
+ "modified": "2021-03-18 10:20:15.559305",
+ "modified_by": "Administrator",
+ "module": "Projects",
+ "name": "Profitability",
+ "owner": "Administrator",
+ "prepared_report": 0,
+ "ref_doctype": "Timesheet",
+ "report_name": "Profitability",
+ "report_type": "Script Report",
+ "roles": [
+  {
+   "role": "Projects User"
+  },
+  {
+   "role": "HR User"
+  },
+  {
+   "role": "Manufacturing User"
+  },
+  {
+   "role": "Employee"
+  },
+  {
+   "role": "Accounts User"
+  }
+ ]
+}
\ No newline at end of file
diff --git a/erpnext/projects/report/profitability/profitability.py b/erpnext/projects/report/profitability/profitability.py
new file mode 100644
index 0000000..48adf97
--- /dev/null
+++ b/erpnext/projects/report/profitability/profitability.py
@@ -0,0 +1,119 @@
+# Copyright (c) 2013, Frappe Technologies Pvt. Ltd. and contributors
+# For license information, please see license.txt
+
+from __future__ import unicode_literals
+import frappe
+from frappe import _
+
+def execute(filters=None):
+	columns, data = [], []
+	data = get_data(filters)
+	columns = get_columns()
+	return columns, data
+
+def get_columns():
+	return [
+		{
+			"fieldname": "customer_name",
+			"label": _("Customer"),
+			"fieldtype": "Link",
+			"options": "Customer",
+			"width": 150
+		},
+		{
+			"fieldname": "title",
+			"label": _("Name"),
+			"fieldtype": "Data",
+			"width": 120
+		},
+		{
+			"fieldname": "employee",
+			"label": _("Employee"),
+			"fieldtype": "Link",
+			"options": "employee",
+			"width": 150
+		},
+		{
+			"fieldname": "grand_total",
+			"label": _("Bill Amount"),
+			"fieldtype": "Currency",
+			"options": "currency",
+			"width": 120
+		},
+		{
+			"fieldname": "gross_pay",
+			"label": _("Cost"),
+			"fieldtype": "Currency",
+			"options": "currency",
+			"width": 120
+		},
+		{
+			"fieldname": "profit",
+			"label": _("Profit"),
+			"fieldtype": "Currency",
+			"options": "currency",
+			"width": 120
+		},
+		{
+			"fieldname": "end_date",
+			"label": _("End Date"),
+			"fieldtype": "Date",
+			"width": 120
+		},
+		{
+			"fieldname": "total_billed_hours",
+			"label": _("Total Billed Hours"),
+			"fieldtype": "Int",
+			"width": 120
+		},
+		{
+			"fieldname": "utilization",
+			"label": _("Utilization"),
+			"fieldtype": "Percentage",
+			"width": 120
+		},
+		{
+			"fieldname": "fractional_cost",
+			"label": _("Fractional Cost"),
+			"fieldtype": "Int",
+			"width": 100
+		}
+	]
+
+def get_data(filters):
+	conditions = get_conditions(filters)
+	sql = """ 
+			select 
+				*, 
+				t.gross_pay * t.utilization as fractional_cost, 
+				t.grand_total - t.gross_pay * t.utilization as profit
+			from 
+				(select
+				si.customer_name,tabTimesheet.title,tabTimesheet.employee,si.grand_total,si.name as voucher_no,
+				ss.gross_pay,ss.total_working_days,tabTimesheet.end_date,tabTimesheet.total_billed_hours,
+				tabTimesheet.total_billed_hours/(ss.total_working_days * 8) as utilization
+				from 
+					`tabSalary Slip Timesheet` as sst join `tabTimesheet` on tabTimesheet.name = sst.time_sheet
+					join `tabSales Invoice Timesheet` as sit on sit.time_sheet = tabTimesheet. name
+					join `tabSales Invoice` as si on si. name = sit.parent and si.status != "Cancelled"
+					join `tabSalary Slip` as ss on ss.name = sst.parent """
+	if conditions:
+		sql += """
+				where
+					%s) as t"""%(conditions)
+	data = frappe.db.sql(sql,filters, as_dict=True)
+
+	return data
+
+def get_conditions(filters):
+	conditions = []
+	if filters.get("customer_name"):
+		conditions.append("si.customer_name='%s'"%filters.get("customer_name"))
+	if filters.get("start_date"):
+		conditions.append("tabTimesheet.start_date>='%s'"%filters.get("start_date"))
+	if filters.get("end_date"):
+		conditions.append("tabTimesheet.end_date<='%s'"%filters.get("end_date"))
+	if filters.get("employee"):
+		conditions.append("tabTimesheet.employee='%s'"%filters.get("employee"))
+	conditions = " and ".join(conditions)
+	return conditions
\ No newline at end of file