ASSESSING PROFITABILITY TRENDS: A COMPARATIVE ANALYSIS OF LEADING SUGAR FIRMS IN INDIA

Abstract

The sugar industry plays a crucial role in the Indian economy, impacting multiple sectors and contributing significantly to the nation’s socio-economic fabric. This research, titled "A Profitability Analysis of Leading Sugar Firms in India," focuses on evaluating the financial performance of three major sugar companies over a five-year period, from 2018-19 to 2022-23. The primary objectives of this study are twofold: first, to assess the profitability indicators of the chosen sugar firms, and second, to compare these profitability metrics across the selected companies. The study examines a representative sample of leading firms in the Indian sugar industry: EID Parry (India) Ltd, Shree Renuka Sugars Ltd, and Balrampur Chini Mills Ltd. These companies are chosen to reflect a broad spectrum of the industry. By analysing critical financial metrics such as the PBDIT (Profit Before Depreciation, Interest, and Taxes) margin, Net Profit Margin (%), and Return on Assets (%), the research seeks to offer a comprehensive view of each firm's financial health, operational efficiency, and market competitiveness. The insights gained from this analysis are intended to benefit various stakeholders, including policymakers, investors, and industry leaders. Understanding the financial performance and strategic positioning of these leading sugar firms can aid in informed decision-making, strategic planning, and policy formulation within the sugar sector. This study aims to shed light on how these key players contribute to the Indian economy and help drive better financial and strategic decisions in the industry.