An Analytical Study of Profitability of Pharmaceutical Companies in India

Abstract

Profitability is an ability of business to generate revenue from its operations carried out by them. Profitability is the key measure of business success. It is a quantitative measure for success, whereas the profitability is influenced by not only other quantitative factors but also by qualitative factors which are affecting business directly or indirectly. The present study will analyzed the profitability of selected Pharmaceutical Companies listed in India. The Indian pharmaceutical sector is growing very speedily with around 10500 manufacturing units. Indian Pharmaceutical Companies enjoys a dominant position is in the global pharmaceuticals sector. At Presently the Indian Pharmaceutical industry is growing at a rate of around 9% to 10% year on year basis which is a good indicator The  Indian Pharmaceutical Industry  is expected to reach up to the marks of $55 billion by 2020 with a CAGR of 15.92% according the report publish by Indian Brand Equity Foundation. The present study will basically focus on analysis of profitability of the selected pharmaceutical companies listed in India   and also to study therelationship between liquidity ratio, Solvency Ratio, Debt Coverage RatioandManagement Efficiency Ratio on Net Profit Marginof Pharmaceutical Companies in India.