Financial Performance Analysis of Selected In...

Financial Performance Analysis of Selected Indian IT Companies: A Comparative study

Author Name : Mr. P Praveen, Dr. E Muthukumar

DOI: https://doi.org/10.56025/IJARESM.2023.1201241899

ABSTRACT Since last three-decade Indian IT sector plays a tremendous role for the development of India. Financial Performance Analysis provide means of determining capability, stability and profitability of companies on the basis of financial statements. The present paper examines the financial position and performance of selected Indian IT for a time period of 10 years (2012-13 to 2022-23) companies and establishes a linear relationship between liquidity, leverage, efficiency and profitability. In this, an attempt is made to do Financial Analysis with the help of various accounting ratios and statistical tools like Anova& CAGR which shows differences in profitability of selected IT companies. From the analysis it was found that the performance of TCS is most satisfactory in terms of Gross Profit and Net Profit Ratio. If we take Return on Capital Invested again TCS is best performer followed by HCL, Infosys & Wipro. In case of Return on Equity the performance of HCL is ranked first followed by TCS, Wipro, Infosys. If we consider current ratio, it can be said on the basis of analysis that TCS has most liquidity followed by Wipro, HCL, Infosys <I Mindtree Ltd.