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Abstract

Home appliance industry is one of the fastest growing industry segments in India. Significant investments have been made in this industry even during global recession. During the last two decades, the industry is found to have expanded at a healthy Compound Annual Growth Rate.Similarly, increasing electrification of rural areas would expand the demand. Hundred percent FDI is allowed in the electronics hardware manufacturing sector under the automatic route. In this context, an attempt has been made to identify the impact of liquidity in business on profitability of the selected home appliances manufacturing companies viz., BEL and TTK during the period from 2007/08 to 2016/17 with the objective of measuring the impact of liquidity in business on profitability of the selected home appliances companies whichhas been analysed by using regression. It has been inferred that the CR, CPR, NWCTR and IM have the impact on almost all the profitability measures such as GPM, OPR, NPM, ROI and ROE in case of BEL, whereas in TTK, the LR, CPR, NWCTR and IM have influence on the above profitability measures.

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