Profitability Analysis of Select Automobile Companies in India — With Special Reference to Tata Motors and Mahindra and Mahindra

Automobile industry is one of the key sectors in India and it is the progressing industry in the country. The industry helps the economy in many ways. The researcher selected Tata Motors Ltd. and Mahindra and Mahindra Ltd. for the analysis of profitability. The period of the study is ten years from 2005-06 to 2014-15. The study used secondary data (accounting data). The researcher used ratio analysis as financial tool and mean, standard deviation, co-efficient of variation, compounded annual growth rate (CAGR) and ANOVA as statistical tools. The researcher found that net profit of Tata Motors decreased during the study period, net profit of Mahindra and Mahindra Ltd. increased considerably. It was also evidenced that profitability in terms of net profit ratio, operating profit ratio, return on assets, return on investments and earnings per share of Mahindra and Mahindra Ltd. was better than Tata Motors Ltd. during the study period. The results of ANOVA indicated that significant differences were found in net profit ratio, return on assets and earnings per share among the sample companies and in case of operating profit ratio and return on investments, no significant differences were found among sample companies.