Financial Performance Analysis Of Indian Commercial Vehicle Industry In India (A Study With Special Reference To Mahindra & Mahindra Limited And Tata Motors Limited)

Abstract

The scripting of growth story of any business firm chiefly rests on its successful financial performance. The successful financial performance mainly rests on firm’s ability to steer its liquidity, profitability and solvency in a direction that ultimately results in protecting its stakeholders’ interests, particularly shareholders’ interest. It is said that financial performance is the fundamental yardstick upon which the reputation of the firm, investors’ confidence in the firm and market value of the firm is critically evaluated. In this back drop, evaluating the financial performance of the business firm assumes greater significance. In this connection, the researcher is interested in analyzing the financial performance of two major commercial vehicle segment majors, such as, Mahindra & Mahindra and Tata Motors Limited, to see how the financial statements of the firms were over-stressed and find out the way forward to de-stress the financial statements.  The researcher has employed Multi-Stage sampling, that is, Three-Stage sampling technique to select the sample firms. The researcher has collected data from the financial records of Mahindra & Mahindra Limited and Tata Motors Limited from the year 2008-09 to 2018-19. Financial Ratios of Variables of Financial Performance and Statistical Tools, such as, Mean, Standard Deviation, Co-Efficient of Variation, Compound Annual Growth Rate and Multiple-Linear Regression have been applied to analyze the data. The findings of the study reveals that MML was good at financial performance parameters, such as, net profit, return on net worth, inventory conversion, utilization of fixed assets, more usage of shareholders’ funds and more interest cover while TML was not good at on these parameters. The researcher suggested that TML shall focus on these financial parameters to have a good financial performance.