Abstract
Purpose: The aim of this article is to measure profitability of selected services provider companies of telecommunication sector in India. The study also aims to identify liquidity and solvency of the selected services provider companies of telecommunication, and how these indicators determine their management efficiency. 
 Approach/Methodology/Design: In this study, three service-provider telecommunication companies operating in India were selected. The study period is from 2013-14 to 2017-18. The criterion for selection of samples is market capitalization in which higher capitalized companies are selected like Bharti Airtel, Tata Communication and Reliance Communication. In this study ratio analysis is used as accounting tool, and One-way Anova technique is used as statistical tool for the identification of difference between the sample means.
 Findings: The major findings of the study indicate that Bharti Airtel and Tata Communication are in a better financial soundness as compared to Reliance Communication. In addition, the results of the study reveal that Reliance Communication suffered huge losses during the study period.
 Practical Implications: The study examines the status of the telecommunication sector with the current rules and regulations provided by government. It also assess the financial condition of the selected telecommunication companies, providing a systematic evaluation based on certain financial indicators that can help investors make relevant decisions.
 Originality/value: The financial indicators are important figures which give an overview about the financial health of any particular organization. There are number of financial indicators which are employed to identify the fair and true picture of organization. Profitability, liquidity and solvency ratios are one method for the identification of financial strength or weakness out of number of methods.
Highlights
India is currently the world’s second largest telecommunications market with a subscriber base of 1.20 billon (Sravanth & Kannaiah, 2019)
The first part of the analysis is concerned with profitability ratios, while the second part of analysis presents the results of liquidity ratios
In the year 2014-15, the ratio was 17.32% which is highest ratio and in the year 2017-18 ratio was 0.17% which is the lowest ratio during study for Bharti Airtel and Reliance Communication respectively
Summary
India is currently the world’s second largest telecommunications market with a subscriber base of 1.20 billon (Sravanth & Kannaiah, 2019). The Indian government provides liberal and reformist policies to Indian citizens. The strong customer demand in the country resulted in rapid growth in the Indian telecom sector. The friendly and easy access to telecom equipment and a fair and proactive regulatory framework provided by the government create availability of telecom services to consumer at affordable prices. Telecom landscape in India has changed completely since liberalization and monopolies in Telecom sector have been replaced with competitive regime (Gupta, 2002). As per the GSMA report, the telecom industry supports 6.5% of India’s GDP (Telecommunication Annual Report, 2019). The fast commoditization of the telecom service/products had necessitated strong initiatives in the Sales and Distribution network. The result is a better service at competitive prices for the customer
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Journal of Advanced Research in Economics and Administrative Sciences
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
