FINANCIAL PERFORMANCE OF SELECT SOFTWARE COMPANY IN INDIA –AN ANALYTICAL STUDY

Abstract

Information Technology in India is an industry consisting of two major components: IT services and business process outsourcing (BPO).[1] The sector has increased its contribution to India's GDP from 1.2% in 1998 to 7.7% in 2017. India's IT Services industry was born in Mumbai in 1967 with the creation of Tata Consultancy Services[7] who in 1977 partnered with Burroughs which began India's export of IT services. Objectives of the study, 1. To analyze the financial performance of selected software companies in terms of liquidity and solvency, positions and to assess the working capital position of selected software companies in India. Methodology of the study, Secondary data is used for the study which is obtained from concerned companies‟ website, NSE website and also from other relevant sites. Ten companies were selected as sample size, on the basis of convenient sampling technique. To analyze the performance of the selected companies, various techniques have been applied, like ratio analysis, mean, standard deviation, coefficient of variation and CAGR Suggestions of the study, The burden of interest has produced a deteriorating effect and reduced the percentage of net profit. It is suggested that a study of productivity and financial efficiency of the software industry of Indian companies. The few companies, which did not follow a definite policy of financing fixed assets, should follow such policy.