Abstract
The paper studies the impact of capital structure decisions on the firm profitability of select large-cap auto ancillary companies. The Indian auto ancillary industry is one of the crucial industries in India and contributes 2.3% to the total GDP. This sector employed 50 lakh people directly and indirectly in the year 2018-19. The study has been made on large-cap auto ancillary companies listed on the Bombay Stock Exchange (BSE). The study period ranges from 2010–2011 to 2020–2021. Ratio analysis and panel data analysis has been applied to perform the empirical analysis. It was found that the capital structure has a negative and significant impact on the firm profitability. Fixed Asset Turnover ratio was found to be a significant determinant of firm profitability of large-cap auto ancillary companies in India.
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