FINANCIAL PERFORMANCE OF SELECT  INFORMATION TECHNOLOGY COMPANIES IN INDIA - WITH SPECIAL REFERENCE TO PROFITABILITY

Syeda Saria Musheer; Dr.L.Ganesamoorthy

Volume : VI, Issue : IV, April - 2017

FINANCIAL PERFORMANCE OF SELECT INFORMATION TECHNOLOGY COMPANIES IN INDIA - WITH SPECIAL REFERENCE TO PROFITABILITY

Syeda Saria Musheer, Dr. L. Ganesamoorthy

Abstract :

The study has analysed profitability of top five information technology companies operating in India. The study required accounting data for analysis and they were collected from financial reports of the respective companies extracted from annual reports. The researchers used ratio analysis, mean, standard deviation and co-efficient of variation as tools of analysis. The study found that profitability in terms of net profit ratio and operating profit ratio of TCS, Infosys and HCL are good, whereas Net profit ratio and operating profit ratio were found to be low in case of Tech Mahindra and operating profit ratio of Wipro is also low. Profitability in terms of return on assets is good in case of TCS and Infosys and profitability performance in this aspect was not good in case of Tech Mahindra and Wipro. Return on shareholders fund of all the selected IT companies is high, but the ratio is comparatively high in case of TCS. Profitability in terms of earnings per share of Infosys is found to be high and the ratio was low in case of Wipro. Overall profitability performance in all aspects is good in case of Infosys Ltd.