Time Series Analysis of Profitability : A Study of Selected Infrastructure Sector Companies in India

Abstract

A nation's economic development has link with many sector groups. All the sector groups draw their basic facilities from the infrastructure sector. Infrastructure is needed for development of any country, roads, railways, power, telecom, education, water supply, sanitation constitute infrastructure. This paper deals profitability analysis of ten selected Indian infrastructure sector companies. The annual data of the selected companies is obtained from the Capital Line Database. Selected infrastructure companies for the analysis are Burnpur Cement, Dalmia Cement, Deccan Cement, Godrej Property, Mangalam Cement, Puravankara, Sagar Cements, Shah Alloys, Surya Roshni, Tata Steel. Further, Ratios calculation is related to Operating Profit Margin, Gross Profit Margin, Net Profit Margin, return on Assets, return on Shareholders’ funds, Assets Turnover, Fixed Assets Turnover, Shareholder Funds Turnover, Current Assets Turnover, Net Current Assets Turnover. Result shows that there is significant difference in the financing pattern of different sectors. Financing of each sector is unique, and they have to be handled uniquely.