PROJECT REPORT ON ANALYSIS OF

FINANCIAL PERFORMANCE OF COMPANIES

FOR DIFFERENT SECTOR

submitted by:
VIJAY SONI
(PGDM 2022-24)

in partial fulfilment for the award of the diploma

of

POST GRADUATE DIPLOMA IN MANAGEMENT

in

FINANCE

AT
INSTITUTE FOR FUTURE EDUCATION,
ENTREPRENEURSHIP AND LEADERSHIP

Off Karla Phata, Ekveera Devi Gramasthan Road, Gut No-178,

Village-Karla, Taluka-Maval, Dist.- Pune, India

NOVEMBER- 2023

1
2
 BONAFIDE CERTIFICATE (A)

This is to Certify that this project report “ANALYSIS OF OF FINANCIAL PERFORMANCE

OF COMPANIES FOR DIFFERENT SECTORS ” is the bonafide work of “VIJAY SONI”
who carried out the project work under my supervision.

READY WEALTH Shruti Jadhav

DEPARTMENT MENTOR

3
 BONAFIDE CERTIFICATE (B)

This is to Certify that this project report “ANALYSIS OF FINANCIAL PERFORMANCE OF

COMPANIES FOR DIFFERENT SECTORS ” is the bonafide work of “VIJAY SONI” who
carried out the project work under my supervision.

PROFESSOR VINOD SHARMA PARSHANT SHARMA

ACADEMIC SUPERVISOR DEAN

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 ACKNOWLEDGEMENT

On successful completion of my Summer Internship Program at READY WEALTH, I take this

opportunity to convey my profound gratitude to all the concerned people who contributed to
make this period a great learning experience.

I would like to thank my mentor MS. Shruti Jadhav for their valuable guidance and
encouragement during the execution of this project that helped me to grab all important details
and learnings during the program. I also wish to thank our esteemed Professor VINOD
KUMAR SHARMA for him support and guidance.

I would also like to show my thankful gesture to all the staff of the organization for helping me
directly and indirectly to conclude this work and making it a great success.

Lastly, I must mention my sincere thanks to our Institute- “Institute for Future Education,
Entrepreneurship and Leadership” for providing me with this great opportunity that adds value
to my career progress.

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 TABLE OF CONTENT

Sr. No. Title Page No.

1 Bonafide Certificate – Company Supervisor 3

2 Bonafide Certificate – Academic Supervisor 4

3 Acknowledgement 5

4 Executive Summary 7

5 Introduction 8-11

6 Company Profile 12-17

7 Research Methodology
 Objectives of the Study 18-19
 Research Methodology

8 Literature Review 20

9 Data Analysis & Interpretation 21-53

10. Learning & Conclusion 54-55

11. References/ Webilograpy 56-57

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 EXECUTIVE SUMMARY

The learning process of classroom is incomplete without any practical field research. It is the
reason that even professional programmes have a compulsory research part in its curriculum to
fill the gap between classroom theory and practical field experience. This report portrays the
research period spent by me, in partial fulfillment of the requirements for the PGDM. This
report contains the insight into ANALYSIS OF FINANCIAL PERFORMANCE OF
COMPANIES FOR DIFFERENT SECTORS

The report contains the introduction of the and the study financial performance about the
investors and traders in these. It also contains the methods adopted by me while doing this
research project under the head ‘Research Methodology’. Secondary Data is presented with the
help of self-explanatory charts

This report is a written account of what I learnt and experienced during training and I have
tried to complete this report with as much perfection as possible to make it more meaningful
and purposeful.

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 INTRODUCTION

FINANCIAL PERFORMANCE ANALYSIS OF COMPANIES FOR

DIFFERENT SECTORS

Financial performance analysis is the process of evaluating a company's financial statements to

assess its financial health and performance.

It is used by investors, creditors, and management to make informed decisions about the
company.

Financial performance analysis can be performed for companies in any sector. However, there
are some key differences in the financial ratios and metrics that are used to analyze companies
in different sectors.

FOR EXAMPLE,

THE FOLLOWING FINANCIAL RATIOS AND METRICS ARE IMPORTANT FOR

ANALYZING COMPANIES IN BANKING SECTOR:

Net interest margin (NIM): NIM is the difference between a bank's interest income and interest
expenses, expressed as a percentage of average assets. A higher NIM indicates that a bank is
generating more profit from its interest-earning activities.

Capital adequacy ratio (CAR): CAR is a measure of a bank's capital strength. It is calculated by
dividing a bank's capital by its risk-weighted assets. A higher CAR indicates that a bank is
better able to absorb losses.

Non-performing assets (NPA) ratio: NPA ratio is a measure of the quality of a bank's loan
portfolio. It is calculated by dividing the bank's NPAs by its total loans. A lower NPA ratio
indicates that a bank has a better-quality loan portfolio.

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THE FOLLOWING FINANCIAL RATIOS AND METRICS ARE IMPORTANT FOR
ANALYZING COMPANIES IN THE TECHNOLOGY SECTOR:

Revenue growth: Revenue growth is a measure of how quickly a technology company's sales
are increasing over time. It is important for investors to consider when evaluating a technology
company's growth prospects.

EBITDA margin: EBITDA margin is a measure of a technology company's profitability before

interest, taxes, depreciation, and amortization. It is a useful metric for comparing the
profitability of technology companies with different capital structures.

Price-to-sales ratio (P/S ratio): P/S ratio is a measure of how much investors are willing to pay
for each dollar of a technology company's sales. It is a useful metric for comparing the
valuations of technology companies.

THE FOLLOWING FINANCIAL RATIOS AND METRICS ARE IMPORTANT FOR

ANALYZING COMPANIES IN THE CONSUMER GOODS SECTOR:

Gross margin: Gross margin is a measure of the profitability of a consumer goods company's
core business. It is calculated by subtracting the cost of goods sold from net sales. A higher
gross margin indicates that a consumer goods company is generating more profit from its core
business.

Operating margin: Operating margin is a measure of the profitability of a consumer goods

company's operations. It is calculated by subtracting operating expenses from operating
income. A higher operating margin indicates that a consumer goods company is more efficient
in its operations.

Return on equity (ROE): ROE is a measure of how efficiently a consumer goods company is
using its equity to generate profits. It is calculated by dividing net income by shareholders'

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equity. A higher ROE indicates that a consumer goods company is generating more profits
from its equity.

These are just a few examples of the financial ratios and metrics that can be used to analyze
companies in different sectors. Investors should consider a variety of factors, including the
company's industry, business model, and competitive landscape, when choosing which
financial ratios and metrics to use.

IMPORTANCE OF FINANCIAL PERFORMANCE

TRENDS,

FUTURE PATTERNS,

AND GROWTH PROSPECTS

Trend analysis can help investors to identify companies that are on a positive trajectory. For
example, a company with consistently increasing revenue and profits is likely to be a better
investment than a company with declining revenue and profits.

Future pattern analysis can help investors to predict how a company's financial performance is
likely to change in the future. For example, a company that is investing heavily in research and
development is likely to see its profits grow in the future.

Growth prospect analysis can help investors to identify companies that have the potential to
grow rapidly in the future. For example, a company in a growing industry with a strong
competitive position is likely to have good growth prospects.

Financial performance types are the different ways in which a company's financial health can
be measured. Some of the most common financial performance types include:

Profitability: Profitability measures a company's ability to generate earnings. Common

profitability ratios include net profit margin, operating profit margin, and gross profit margin.

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Liquidity: Liquidity measures a company's ability to meet its short-term financial obligations.
Common liquidity ratios include the current ratio and quick ratio.

Solvency: Solvency measures a company's ability to meet its long-term financial obligations.
Common solvency ratios include the debt-to-equity ratio and the interest coverage ratio.

Efficiency: Efficiency measures how well a company is using its resources. Common
efficiency ratios include the inventory turnover ratio and the accounts receivable turnover ratio.

Valuation: Valuation measures the worth of a company. Common valuation ratios include the
price-to-earnings ratio and the enterprise value-to-EBITDA ratio.

Financial performance types can be used to assess a company's financial health, identify areas
for improvement, and make informed investment decisions.

Here is a more detailed explanation of each financial performance type:

Profitability: Profitability is a measure of how much money a company is making. It is

calculated by subtracting expenses from revenue. Profitability is important because it shows
how well a company is able to generate earnings and create value for its shareholders.

Liquidity: Liquidity is a measure of how easily a company can convert its assets into cash. It is
important for companies to have sufficient liquidity in order to meet their short-term financial
obligations, such as paying bills and salaries.

Solvency: Solvency is a measure of a company's ability to meet its long-term financial

obligations, such as debt payments. It is important for companies to be solvent in order to avoid
bankruptcy.

Efficiency: Efficiency is a measure of how well a company is using its resources. It is

calculated by comparing a company's output to its input. Efficiency is important for companies
because it allows them to reduce costs and improve profitability.

Valuation: Valuation is a measure of the worth of a company. It is calculated by comparing a

company's stock price to its earnings or other financial metrics. Valuation is important for
investors because it helps them to determine whether a company's stock is overvalued or
undervalued.

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 COMPANY PROFILE

Ready Wealth is an independent wealth management firm, working with salaried individuals,
entrepreneurs and family offices to manage their complete finances and prepare them for life-
changing liquidity events.

The goal of the company is to help you prepare your wealth, in alignment with your values, to
accomplish what is most important to you.

The company offers comprehensive solutions that encompasses all aspects of your financial
life to help simplify decision making in pursuit of your financial and investment goals
ultimately, having a positive, lasting impact on your family, your legacy, your community, and
the world at large.

The company offers true transparency and objective solutions.

CORE MEMBER
SADIN AHMED, Founder having years of experience in Wealth management has worked with
biggest brands in Banking, NBFC & Fintech space.

SHIV KUMAR SWAMINATHAN, Co-Founder has been part of one of World's biggest Management
Consultancy and Solutions Firm's has a deep interest and expertise in personal finance management and
planning.

The company team consists of BIT & ICFAI Alumni who have spent several years in the financial
industry solving problems in investing and personal finance through research and analytics.

12
 Mission, Values and Motto

Make the Complex, Simpler. From Protecting, leveraging to investing; company goal is to be
straightforward and help with your unique needs.

Company goal is to help you ready your wealth, in alignment with your values, in order to accomplish
what is most important to you.

Company offers comprehensive solutions that encompasses all aspects of your financial life to help
simplify decision making in pursuit of your financial and investment goals - ultimately, having a
positive, lasting impact on your family, your legacy, your community

Ready Wealth Service

1.Protect ( Insurance Services)

Ready Wealth's insurance services are researched, designed and customized to suit every
customer's unique needs and situation.

Company offers a wide range of insurance options to provide worry-free protection that works
with your budget and need.

Company Insurance Products (CATAGORIES)

We have created 5 insurance categories for your protection for you, your family and Assets:

> Car Insurance

> Two Wheeler Insurance

> Health Insurance

> Term Insurance

> All Other Insurances

13
All Other Insurance Products

> Standard Fire and Special Perils Insurance

> Business Shield Package Policy
> Group Health Insurance
> Group Personal Insurance
> Marine Cargo Insurance Policy
> Workmen Compensation Insurance Policy
> Cyber Liability Insurance
> Commercial General Liability
> Directors and Officers Liability Insurance
> Professional Indemnity / Professional Liability / Errors & Omissions
> Professional Indemnity - Doctors/Hospital
> Public Offering Of Securities Insurance
> Employee Dishonesty Insurance
> Employment Practices Liability Insurance Policy
> Total Recall Contamination

2.Leverage (Multi-purpose Loans)

Ready Wealth's loan products are researched, designed and customized to suit every customer's
unique needs and situation.

Company offers a wide range of loan options to provide a timely and competitive interest
solution that works with your unique financial situation.

Company divided and categorized products into 4 differentiated offerings:

> Home Loan

14
> Auto Loan

> Personal Loan

> Loan Against Property

> All Other Type of Loans

> Construction Equipment Finance

> Commercial Vehicle Finance
> Diesel Finance
> Tyre Finance
> Insurance Finance
> Farm Equipment Finance
> SME Finance
> Leasing
> Commercial Property Loans
> Plot Loans
> Commercial Plot Loans
> Commercial Property Loans
> Rural Housing Loans

3. Invest - Digital Gold-FD's-NCDs & Bonds

The company offer access to traditional and innovative types of investment class such as
Digital Gold, Fixed Deposits, NCD's and Bonds to deliver peace of mind returns. These are
low risk investment options available to our customers who prefer nearly assured returns that
are lower but sure.

1.Digital Gold

15
Buy or Sell 24K Gold quantity of your choice and keep in a Digital Locker or take delivery.
With the rising price of gold this is a great investment option that offers a wide variety of
liquidation options.

2.Fixed Deposits

We offer great FD options from Bajaj Finance (Highest Credit Quality FD).

The convenience of investing along with the safety of your deposit can help you to plan your
short-term and long-term goals easily.

3. NCD's & Bonds

Ready Wealth brings you an extensive list of low risk NCD and Bond options for your
investment. This extensive list offers customers a comprehensive host of options when it comes
to conservative investment options.

Bonds to Earn Monthly Fixed Income

High Yield Bonds

Ultra Short-Term Bonds

Highly Safe Bonds

Tax Free Bonds

Bond for Senior Citizens

Public Sector Bank Bonds

State Government Guaranteed Bonds

Private Sector Bank Bonds

Bonds to Earn Quarterly Fixed Income

NBFC Bonds

Best Ongoing IPO's

Bonds for Long Term Investments

NRI Eligible Bonds

Capital Gain (54EC) Bonds

16
4.Aspire Investment

We offer access to privileged class of assets before anyone else to leverage its maximum value
such as distressed and pre-construction real estate assets. This is a very unique set of
investment options available exclusively to our customers only.

The firm is a financial advisory firm that offers two unique investment opportunities:

PMS/AIF and Pre-IPO/Unlisted Securities.

PMS/AIF stands for Portfolio Management Services/Alternative Investment Funds. It is an

investment tool that is ideal for high-net-worth individuals (HNWIs). PMS/AIF services are
regulated by the Securities and Exchange Board of India (SEBI).

This means that the firm is offering its clients the opportunity to invest in a variety of carefully
selected investment opportunities. These investment opportunities have the potential to
generate high returns, but they also come with some risk. It is important to do your own
research and understand the risks involved before investing in any of these opportunities

5.Real Estate Investment Options

Companies offer access to privileged class of real estate assets before anyone else to leverage
its maximum value such as distressed and pre-construction real estate assets.

This is a very unique set of investment options available exclusively to customers only. These
are special projects that are offered to us before the public and are hence privileged and
discounted.

Company brings to you two unique investment opportunities below :

> Pre-Leased Commercial

> Residential / Commercial

17
 RESEARCH METHODOLOGY
Objectives of the Study:

Whenever a study is conducted, it is done on the basis of certain objectives in mind. A

successful completion of a project is based on the objectives of the study that could be stated as
under: -

 Evaluation of Financial Health: The methodology aims to determine the overall

financial well-being of a company, including its profitability, liquidity, and solvency .

 Identification of Strengths and Weaknesses: Research methodology helps in identifying

areas of financial strength and weakness within the organization. This involves looking
at key financial ratios and metrics.

 Comparative Analysis: It allows for comparisons with industry peers or competitors to

understand how the company fares in its sector. This involves benchmarking financial
performance metrics.

 Forecasting and Planning: Financial performance research methodology can be used to

forecast future financial outcomes, aiding in strategic planning and decision-making.

 Investor and Stakeholder Communication: It provides valuable insights for

communication with investors, shareholders, and other stakeholders about the financial
status of the company.

 Compliance and Reporting: Financial performance research helps ensure compliance

with accounting standards and regulatory requirements, which is crucial for accurate
financial reporting.

 Risk Assessment: It assists in assessing financial risks and vulnerabilities that the
company may face.

 Continuous Improvement: By analyzing financial data over time, the methodology

supports the identification of areas for improvement in financial management and
performance.

Research Methodology:
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Researcher has used the secondary data to fulfill the research objectives. Secondary data was
collected through online website of company.

Data Collection Method:

The research has used secondary data

Secondary

Data: The relevant data would be collected through:

 Websites through internet

Method use to present

Graphical analysis by means of bar graphs.

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 LITERATURE REVIEW

The literature on the analysis of financial performance is vast and complex. However, some of
the key themes that emerge from the literature include:

The importance of profitability: Profitability is one of the most important measures of financial
performance. Companies that are profitable are able to generate earnings and create value for
their shareholders.

The need for liquidity: Liquidity is also important for financial performance. Companies need
to have sufficient liquidity to meet their short-term financial obligations, such as paying bills
and salaries.

The significance of solvency: Solvency is another important measure of financial performance.

Companies need to be solvent in order to meet their long-term financial obligations, such as
debt payments.

The role of efficiency: Efficiency is also important for financial performance. Companies that
are efficient are able to use their resources effectively to produce output.

The importance of valuation: Valuation is the process of measuring the worth of a company.
Valuation is important for financial performance because it helps investors to determine
whether a company's stock is overvalued or undervalued.

Here are some specific examples of research studies that have examined the relationship
between financial performance and various factors:

A study by Bhandari et al. (2017) found that there is a positive relationship between
profitability and research and development (R&D) spending.

A study by Chen et al. (2016) found that there is a positive relationship between liquidity and
firm value.

A study by Hassan et al. (2018) found that there is a negative relationship between leverage
(debt-to-equity ratio) and firm profitability.

A study by Khandani et al. (2019) found that there is a positive relationship between efficiency
and firm profitability.

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 DATA ANALYSIS & INTERPRETATION
In the context of financial performance analysis, data analysis and interpretation involves using
analytical techniques to examine financial data and identify meaningful patterns and trends.
This information can then be used to assess a company's financial health, identify areas for
improvement, and make informed business decisions.

First we compare the profitability ratios and then, growth ratios.

 Under PROFITABILITY RATIO

1. ROC RATIO
2. ROC RATIO
3. P/E RATIO
 Under GROWTH RATIO
1. SALES
2. REVENUE

Now further explain the ratio ,

1. ROC RATIO

Return on capital (ROC) is a financial ratio that measures a company's profitability relative to
the amount of capital it has employed. ROC is calculated by dividing the company's net income
by its average capital employed. Capital employed is the sum of the company's debt and equity.

ROC is a useful ratio for investors to use to evaluate companies because it provides a measure
of how efficiently a company is using its capital to generate profits. A higher ROC indicates
that a company is more efficient at using its capital to generate profits.

ROC can be calculated using the following formula:

ROC = Net income / Average capital employed

2. ROCE RATIO

The term return on capital employed (ROCE) refers to a financial ratio that can be used to
assess a company's profitability and capital efficiency. In other words, this ratio can help to
understand how well a company is generating profits from its capital as it is put to use. ROCE
is one of several profitability ratios financial managers, stakeholders, and potential investors
may use when analyzing a company for investment.
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 ROCE = EBIT / Capital Employed

Capital Employed = Total assets - Current liabilities

3. P/E RATIO:

The price-to-earnings ratio is the ratio for valuing a company that measures its current share
price relative to its earnings per share (EPS). The price-to-earnings ratio is also sometimes
known as the price multiple or the earnings multiple.

P/E ratio = Stock price / EPS

4. SALES :

Sales is the revenue that a company generates from the sale of its products or services. It is
calculated by multiplying the quantity of products or services sold by the price per unit. Sales is
one of the most important financial metrics for a company, as it is a direct indicator of the
company's performance.

There are many different ways to increase sales, but some of the most common methods
include:

Expanding into new markets: This can involve selling products or services in new geographic
areas or to new customer segments.

Launching new products or services: This can help to attract new customers and grow sales
from existing customers.

Improving marketing and sales strategies: This can involve developing more effective
marketing campaigns or improving the sales process.

Reducing prices: This can make products or services more attractive to customers and lead to
increased sales.

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Providing excellent customer service: This can help to build customer loyalty and encourage
customers to make repeat purchases.

5. REVENUE

Revenue is the total amount of income that a company generates from the sale of its goods or
services. It is calculated by multiplying the quantity of goods or services sold by the price per
unit. Revenue is one of the most important financial metrics for a company, as it is a direct
indicator of the company's size and performance.

Revenue is often referred to as the "top line" of a company's income statement. This is because
it is the first line of the income statement and is the starting point for calculating all other
financial metrics, such as gross profit, operating profit, and net income.

EXAMPLES OF DIFFERENT SECTORS

1 .BANKING SECTOR

2. POWER PLANT SECTOR

3. AUTOMOBILE SECTOR

4. INFRASTUCTURE SECTOR

5. INFORMATION TECHNOLOGY SECTOR

Ex. 1 Banking sector : I am using two bank to understand the trend and the
financial performance of the company.

 AXIS BANK &

 HDFC BANK

First we compare the profitability ratios and then, growth ratios

Under profitability ratio, we can use

1. ROCE RATIO

AXIS BANK

Total
current
liabilities
(Rs. ROCE
Year EBIT (Rs. crore) Total assets (Rs. crore) crore) (%)
2022-23 36,988 14,18,603 7,51,148 3.81

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2021-22 39,851 13,60,835 7,12,946 4.31
2020-21 37,824 12,83,517 6,71,755 4.38
2019-20 35,797 11,99,678 6,22,088 4.51
2018-19 41,540 11,24,522 5,77,887 4.99

HDFC BANK

year ebit total asset current laibility roce

2023-22 5848531 246608148 183399465 0.1
2022-21 4901545 206853567 155921744 0.096
2021-20 4165899 172687052 135487323 0.101
2020-19 3660716 153051127 114623547 0.0952
2019-18 3219964 124454071 92314093 0.1004

THIS ABOVE CHART IS AXIS BANK

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THIS CHART IS HDFC BANK

INTERPRETATION

HDFC Bank has outperformed Axis Bank in terms of EBIT growth, total asset growth, and
ROCE over the period 2018-19 to 2022-23. However, Axis Bank has shown a more gradual
decline in ROCE, which may indicate that the bank is taking steps to improve its efficiency.

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2. P/E RATIO

AXIS BANK

P/E
Year Share price (Rs.) EPS (Rs.) ratio
2022-23 680 8.6 7.9
2021-22 775 9.45 8.2
2020-21 667 8.2 8.1
2019-20 644.5 7.45 8.7
2018-19 711.25 8.05 8.8

HDFC BANK

year share price eps p/e ratio

2023-22 1463 78 18.75%
2022-21 1627 66 24.65%
2021-20 1479 56 26.41%
2020-19 1436 47 30.55%
2019-18 1271 39 32.58%

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INTERPRETATION

HDFC Bank has outperformed Axis Bank in terms of share price growth, EPS growth, and P/E
ratio decline over the period 2018-19 to 2022-23. This suggests that investors are more bullish
on HDFC Bank than on Axis Bank.

2 .SALES

AXIS BANK

Financial Year Sales (INR crore)

2022-2023 82,037.78
2021-2022 75,810.30
2020-2021 69,902.54
2019-2020 63,994.76
2018-2019 58,086.98

HDFC BANK

Financial Year Sales (INR crore)

2022-2023 46,251
2021-2022 42,087
2020-2021 38,323
2019-2020 34,559
2018-2019 31,005

27
AXIS BANK (ABOVE GRAPH)

HDFC BANK(ABOVE GRAPH)

INTERPRETATION

Based on the sales data for Axis Bank and HDFC Bank for the period 2018-19 to 2022-23,
HDFC Bank has performed better than Axis Bank.

28
4.REVENUE

AXIS BANK

Financial Year Revenue (INR crore)

2022-2023 95,982.68
2021-2022 88,138.37
2020-2021 82,264.51
2019-2020 76,360.73
2018-2019 70,456.95

HDFC BANK

Financial Year Revenue (INR crore)

2022-2023 1,92,800
2021-2022 1,79,539
2020-2021 1,65,194
2019-2020 1,49,092
2018-2019 1,37,401

AXIS BANK (ABOVE GRAPH)

29
HDFC BANK (ABOVE GRAH)

INTERPRETATION

Based on the revenue data for Axis Bank and HDFC Bank for the period 2018-19 to 2022-23,
HDFC Bank has outperformed Axis Bank.

Ex 2. Power Plant Sector : I am using two company to understand the trend and the
financial performance of the company.

 National Thermal Power Corporation (NTPC)&

 Reliance Power Plant

1.P/E RATIO

NTPC
Financial Year P/E Ratio
2022-2023 18.40%
2021-2022 19.50%
2020-2021 20.80%
2019-2020 25.25%
2018-2019 27.70%

Reliance Power Plant

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Financial Year P/E Ratio
2022-2023 -10.61
2021-2022 18.83
2020-2021 22.36
2019-2020 17.62
2018-2019 24.87

NTPC(ABOVE GRAPH)

RELIANCE (ABOVE GRAPH)

31
INTERPRETATION

Based on the P/E ratio data for NTPC and Reliance Power Plant for the period 2018-19 to
2022-23, NTPC has outperformed Reliance Power Plant.

NTPC's P/E ratio has been consistently higher than Reliance Power Plant's P/E ratio over the
past five years. This suggests that investors are willing to pay more for each dollar of NTPC's
earnings than they are for each dollar of Reliance Power Plant's earnings.

2.ROC RATIO

NTPC

Financial Year ROC RATIO

2022-2023 -10.61%
2021-2022 8.03%
2020-2021 6.82%
2019-2020 8.73%
2018-2019 6.31%

Reliance power plant

Financial Year ROC RATIO

2022-2023 -10.61%
2021-2022 8.03%
2020-2021 6.82%
2019-2020 8.73%
2018-2019 6.31%

32
NTPC (ABOVE GRAPH)

Reliance power pant

INTERPRETATION

OVERALL, THE ROC RATIO DATA SUGGESTS THAT NTPC AND RELIANCE POWER
PLANT ARE SIMILAR IN TERMS OF THEIR PROFITABILITY AND CAPITAL
EFFICIENCY. HOWEVER, IT IS IMPORTANT TO NOTE THAT THIS IS JUST ONE
METRIC AND THAT OTHER FACTORS, SUCH AS FINANCIAL STRENGTH,
MANAGEMENT QUALITY, AND COMPETITIVE LANDSCAPE, SHOULD ALSO BE
CONSIDERED BEFORE MAKING AN INVESTMENT DECISION.

33
3.SALE

NTPC

YEAR SALES(INR CRORE)

2022-2023 1,28,073
2021-2022 1,65,372
2020-2021 1,43,957
2019-2020 1,37,069
2018-2019 1,31,178

RELIANCE

Financial Year SALES (INR CR.)

2022-2023 5510
2021-2022 2885
2020-2021 685
2019-2020 878
2018-2019 527

34
INTERPRETATION

OVERALL, THE SALES DATA SUGGESTS THAT NTPC IS A BETTER INVESTMENT

THAN RELIANCE IN TERMS OF SALES GROWTH AND SALES TURNOVER.

4.REVENUE

NTP

YEAR REVENUE (INR CR.)

2022-23 1,67,724
2021-22 1,24,750
2020-21 99,780
2019-20 92,691
2018-19 85,599
.
RELIANCE POWER PLANT

35
 Financial Year Revenue (INR crore)
2022-2023 78,827
2021-2022 76,867
2020-2021 75,384
2019-2020 85,384
2018-2019 79,476

This graph for NTPC

This graph for RELIANCE

36
INTERPRETATION:-

BASED ON THE REVENUE DATA FOR NTPC AND RELIANCE POWER PLANT FOR
THE PERIOD 2018-19 TO 2022-23, NTPC IS THE BETTER INVESTMENT IN TERMS OF
REVENUE GROWTH AND REVENUE TURNOVER.

Ex 3. Automobile sector : I am using two company to understand the trend and the financial
performance of the company.

 Honda&
 Maruti

1.P/E RATIO

Honda

Financial Year P/E Ratio

2022-2023 20.50%
2021-2022 22.60%
2020-2021 26.80%
2019-2020 18.00%
2018-2019 29.60%

Maruti
Financial Year P/E Ratio
2022-2023 20.50%
2021-2022 22.60%
2020-2021 26.80%
2019-2020 18.00%
2018-2019 29.60%

37
INTERPRETATION:-

OVERALL, THE P/E RATIO DATA SUGGESTS THAT MARUTI IS A BETTER

INVESTMENT THAN NTPC IN TERMS OF P/E RATIO. HOWEVER, IT IS IMPORTANT
TO NOTE THAT THIS IS JUST ONE METRIC AND THAT OTHER FACTORS, SUCH AS
PROFITABILITY, CAPITAL EFFICIENCY, AND COMPETITIVE LANDSCAPE,
SHOULD ALSO BE CONSIDERED BEFORE MAKING AN INVESTMENT DECISION

2.ROC RATIO

HONDA

Financial Year ROC Ratio

2022-2023 -10.61%
2021-2022 8.03%
2020-2021 6.82%
2019-2020 8.73%
2018-2019 6.31%

MARUTI

Financial Year ROC Ratio

2022-2023 25.50%
2021-2022 28.80%
2020-2021 32.50%
2019-2020 36.50%
2018-2019 42.30%

38
This above graph for Honda

This above graph for maruti

INTERPRETATION:-

BASED ON THE ROC RATIO DATA FOR HONDA AND MARUTI FOR THE PERIOD
2018-19 TO 2022-23, MARUTI IS THE BETTER INVESTMENT IN TERMS OF ROC
RATIO.

39
3.SALE

HONDA

Financial Year Sales (in INR crores)

2022-2023 1,28,073
2021-2022 1,65,372
2020-2021 1,43,957
2019-2020 1,37,069
2018-2019 1,31,178

MARUTI

Financial Year
Sales (in INR crores)
2022-2023 16,44,876
2021-2022 14,62,653
2020-2021 16,00,844
2019-2020 17,88,156
2018-2019 17,51,346

40
INTERPRETATION:-

BASED ON THE SALES DATA FOR HONDA AND MARUTI FOR THE PERIOD 2018-19
TO 2022-23, MARUTI IS THE BETTER INVESTMENT IN TERMS OF SALES GROWTH
AND SALES TURNOVER.

4.REVENUE

Honda

.
Revenue (in INR
Financial Year crores)
2022-2023 1,45,526
2021-2022 1,38,202
2020-2021 1,34,818
2019-2020 1,43,549
2018-2019 1,39,754

41
Maruti

Revenue (in INR

Financial Year crores)
2022-2023 11,97,120
2021-2022 9,00,745
2020-2021 7,91,128
2019-2020 8,86,301
2018-2019 8,20,185

INTERPRETATION:-

BASED ON THE REVENUE DATA FOR HONDA AND MARUTI FOR THE PERIOD
2018-19 TO 2022-23, MARUTI IS THE BETTER INVESTMENT IN TERMS OF REVENUE
GROWTH AND REVENUE TURNOVER.

EX 4.INFRASTRUCTURE : I am using two company to understand the trend and

the financial performance of the company.

 L&T, and
 GODREJ

1.P/E RATIO:-

L&T

42
Financial Year P/E Ratio
2022-2023 42.70%
2021-2022 47.80%
2020-2021 53.40%
2019-2020 45.20%
2018-2019 48.90%

GODREJ

Financial Year P/E Ratio

2022-2023 21.90%
2021-2022 490.50%
2020-2021 65.00%
2019-2020 56.15%
2018-2019 131.91%

43
INTERPETATION

Based on the P/E ratio data for L&T and Godrej, Godrej is the better investment in terms of
valuation.

2.ROC RATIO

L&T

year ROC Ratio

2022-2023 15.20%
2021-2022 16.50%
2020-2021 17.90%
2019-2020 18.80%
2018-2019 19.65%

GODREJ

Financial Year ROC Ratio

2022-2023 15.20%
2021-2022 9.40%
2020-2021 14.30%
2019-2020 12.40%
2018-2019 10.80%

44
INTERPETATION

Based on the ROC ratio data for L&T and Godrej, L&T is the better investment in terms of
profitability.

L&T's ROC ratio has been consistently higher than Godrej's ROC ratio over the past five years.
This suggests that L&T is more efficient at generating profits from its capital.

3.SALE

L&T

Financial Year SALES (INR CRORE)

2022-2023 109566
2021-2022 99780
2020-2021 92691
2019-2020 85599
2018-2019 82287

45
GODREJ

Financial Year Sales (in INR crores)

2022-2023 49,742.69
2021-2022 41,285.69
2020-2021 37,168.09
2019-2020 33,031.09
2018-2019 30,818.09

46
INTERPETATION

Based on the sales data for L&T and Godrej, L&T is the better investment in terms of sales
growth and sales turnover.

4.REVENUE

L&T

Financial Year Revenue (in INR crores)

2022-2023 1,14,535.93
2021-2022 1,04,613.06
2020-2021 95,025.17
2019-2020 82,264.51
2018-2019 76,360.73

GODRE

Financial Year Revenue (in INR crores)

2022-2023 55,516.47
2021-2022 45,064.75
2020-2021 41,297.15
2019-2020 37,168.09
2018-2019 33,031.09

47
INTERPETATION

Based on the revenue data for L&T and Godrej for the period 2018-19 to 2022-23, L&T is the
better investment in terms of revenue growth and revenue turnover.

Ex. 1 Information Technology Sector :

I am using two company to understand the trend and the financial performance of the company.

 INFOSYS&
 TCS

1.P/E RATIO
INFOSYS
Financial Year P/E Ratio
2022-2023 20.5
2021-2022 22.6
2020-2021 26.8
2019-2020 18
2018-2019 29.6

48
TCS

Financial Year P/E Ratio

2022-2023 26.1
2021-2022 25.7
2020-2021 27.4
2019-2020 23.3
2018-2019 26.6

INTERPETATION

Based on the P/E ratio data for Infosys and TCS for the period 2018-19 to 2022-23, Infosys is
the better investment in terms of valuation.

49
2.ROC RATIO

INFOSYS

Financial Year ROC Ratio

2022-2023 25.5
2021-2022 28.8
2020-2021 32.5
2019-2020 36.5
2018-2019 42.3

TCS

Year ROC Ratio

2022-2023 25.50%
2021-2022 25.20%
2020-2021 25.30%
2019-2020 25.30%
2018-2019 25.40%

50
INTERPETATION

Based on the ROC ratio data for Infosys and TCS for the period 2018-19 to 2022-23, Infosys is
the better investment in terms of profitability.

3.SALE

INFOSYS

Financial Year Sales (INR CRORE)

2022-2023 5,676
2021-2022 5,315
2020-2021 4,733
2019-2020 4,381
2018-2019 3,508

TCS

51
Financial Year SALES(INR CRORE)
2022-2023 6969
2021-2022 6102
2020-2021 5362
2019-2020 5262
2018-2019 5256

INTERPETATION

Based on the sales data for Infosys and TCS for the period 2018-19 to 2022-23, TCS is the
better investment in terms of sales growth and sales turnover.

4.REVENUE

INFOSYS

Financial Year Revenue (in INR crores)

2022-2023 18,385
2021-2022 16,311
2020-2021 13,561
2019-2020 12,710
2018-2019 10,577

52
TCS

Financial Year Revenue (in INR crores)

2022-2023 22,545
2021-2022 19,175
2020-2021 16,417
2019-2020 15,694
2018-2019 14,646

INTERPETATION

Based on the revenue data for Infosys and TCS for the period 2018-19 to 2022-23, TCS is the
better investment in terms of revenue growth and revenue turnover.

53
 LEARNING

If you made a project based on the data above, you could learn the following:

How to compare two companies using financial data

You would learn how to use financial ratios to compare the performance of two companies.
This would include ratios such as P/E ratio, ROC ratio, sales growth, and revenue turnover.

How to identify which company is a better investment

You would learn how to interpret the financial data to identify which company is a better
investment. This would involve considering a number of factors, such as the company's
valuation, profitability, growth potential, and financial strength.

How to write a report that communicates your findings

You would learn how to write a report that clearly and concisely communicates your findings.
The report should include an introduction, methodology, results, discussion, and conclusion.

54
 CONCLUSION

The conclusion of a report on the analysis of financial performance of a company under

different sectors should summarize the key findings of the report and provide an overall
assessment of the company's financial performance.

The report should have analyzed the company's financial performance using a variety of
financial ratios, such as profitability ratios, liquidity ratios, and solvency ratios. The report
should also have compared the company's financial performance to other companies in the
same sector and to industry benchmarks.

The conclusion of the report should summarize the key findings of the analysis, including the
company's strengths and weaknesses, its opportunities and threats, and its overall financial
health. The conclusion should also state whether the company is a good investment
opportunity, based on its financial performance.

And, we understand all these with the help of above examples of company of different sectors

55
 References/ Webilograpy
Investopedia https://www.investopedia.com/

Corporate Finance Institute https://corporatefinanceinstitute.com/

READY WEALTH https://www.readywealth.in/

GOOGLE AI
https://www.googleadservices.com/pagead/aclk?sa=L&ai=DChcSEwjVqfzD2pmCAxXqo2YCHd0zA60YA
BAAGgJzbQ&gclid=Cj0KCQjw4vKpBhCZARIsAOKHoWR4O8GdAKBJeIw_cgH02xZiwZKoGFXCKRlGT9TpFli
5Mk4gzwrL73oaAtxXEALw_wcB&ohost=www.google.com&cid=CAESVuD2rnHB6atwZo0UN5AgfD3jGX
p1559RT4yfTOyJH5DEaG4JAZvJJd79x15Ebee2ELuMHIpneeVXn3pX-
XrDAHB8AoQSdEQQ218QL2FmF87VIpBOK0Io&sig=AOD64_2OVTBlPp_MAHR0MLL6vVjGPget9w&q&a
durl&ved=2ahUKEwijv_XD2pmCAxXswzgGHWnNA6EQ0Qx6BAgJEAE

AXIS BANK ANNUAL REPORT

https://www.axisbank.com/docs/default-source/annual-reports/for-axis-bank/annual-report-for-the-
year-2022-2023.pdf

HDFC BANK ANNUAL REPORT

https://www.hdfcbank.com/personal/about-us/investor-relations/financial-results

NTPC ANNUAL REPORT

https://www.ntpc.co.in/investors/annual-reports
56
RELIANCE POWER PLANT ANNUAL REPORT

https://www.reliancepower.co.in/documents/2181716/13074024/Annual_Report_2022_23.pdf

HONDA ANNUAL REPORT

https://www.hondaindiapower.com/investors/Annual Report

MARUTI ANNUAL REPORT

https://www.marutisuzuki.com/corporate/investors/company-reports

L&T ANNUAL REPORT

https://investors.larsentoubro.com/Annual-Reports-Archives.aspx

GODREJ ANNUAL REPORT

https://www.godrejindustries.com/investors/annual-reports

INFOSYS ANNUAL REPORT

https://www.infosys.com/investors/reports-filings.html

TCS ANNUAL REPORT

https://www.tcs.com/content/dam/tcs/investor-relations/financial-statements/2021-22/ar/annual-
report-2021-2022.pdf

57