International Journal of Humanities Social Science and Management (IJHSSM)

Volume 4, Issue 2, Mar.-Apr., 2024, pp: 1099-1109 www.ijhssm.org

A Study on Financial Performance Analysis of Selected

Automobile Companies in India
*Nithya sri. M **Mrs. L. Priya
*M. Com (CA), Department of Commerce (CA), Dr.N.G.P Arts and Science College,
Coimbatore
**Assistant Professor in Commerce with Computer Applications, Dr.N.G.P Arts and Science College,
Coimbatore
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Date of Submission: 02-04-2024 Date of Acceptance: 12-04-2024
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ABSTRACT: played a vital role in promoting the industrial

A study on financial performance analysis of establishments of the world. The industrial
selected automobile companies in India scrutinizes establishments made the necessity for the fast-
their financial health by evaluating key metrics like paced transportation of the goods and services
profitability, liquidity, and solvency. It aims to which resulted in the expansion of the automobiles
identify trends, strengths, and areas of sector all over the world. The ever-expanding
improvement within the sector, contributing automobiles sector all together deals with the
insights for investors and stakeholders. To study the process of transporting both the tangible and
financial structure and financial position of the intangible resources of the industrial and the public
selected Indian Automobile Companies. This type sector. The automobiles sector of the world has
of research focused on what is currently in increased from one crore vehicles in the year 1950
existence, what can be the new facts and meaning. to ninety crores vehicles in the year 20151.The
In the present study data has been collected by magnitude of the vehicles production has changed
using secondary source. The data is collected from enormously in the global era.
annual report, books, internet, magazines, The automobile sector acts as the fastest
newspaper etc. The following tools which were growing industrial sector of the world. It has been
used in the research study is Trend analysis, Ratio made as the base for development of the other
analysis, Anova for testing the hypothesis. The industries in the country. As such it has evolved as
financial performance study of the chosen one of the most significant sectors of the world.
automotive industry not only improves our The automobiles sector acts as the connecting hub
comprehension of the economic environment of the between the all sectors of the world economy. This
sector but also offers a framework for promoting sector also attracts lots of funding activities for its
competitiveness and sustainable growth in a development as it has more potential than other
constantly shifting global market. sectors of the world. The investment level made in
the automobiles sector has also seen drastic
I. INTRODUCTION changes and it has the highest ability to attract the
The development of the automobile sector foreign direct investment of the country. The sector
has attained completely different stature in the 21st that has significant potential for economic
century. The mere process of transportation has development is also one among the reasons that
grown into multi-dimensional sector in the fast- India is in the status of the developing country.
paced global economy. The transportation used in
this modern era has given much scope for the STATEMENT OF THE PROBLEM:
evolution of the automobiles sector. The The automobile Companies have
automobiles taking the needs of the society into its contributed significantly towards changing the face
wings has come a long way in the path of of economic activities that are sedimental to the
developing the economy. This sector has taken the growth of the nation. The global economic policies
centre-stage for the development of any economy on the other hand have played vital role in the
after the French revolution. The French revolution automobiles sectors‟ development. The automobile
has stressed the need for development of all sectors sector has their own resource of capital when they
in-order to achieve the balanced and stabilized start their scale of operation. The further expansion
growth in the economy of the country. It also of the automobile industries is largely based upon
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the public capital. The public capital has been extensive use of the descriptive research approach.
dependent on the economic performance and In order to determine the impact of the independent
reputation of the company. The acquirement of the financial parameters on the dependent financial
public capital is possible only through the stock parameters—which will be useful in predicting the
exchanges in the country. This stock exchange future financial trend of the automotive sector—the
which is controlled by SEBI. The SEBI has the penultimate phase of the study employed a
power to regulate the movement of the public simulation research approach. The automotive
capital. It involves lot of measures to make public industry's financial performance is designed in a
to invest in a company share. way that makes it possible to both gauge present
performance and predict future trends that will
OBJECTIVES OF THE STUDY: outperform current performance.
1.To examine the capital structure of the Indian
Automobile Companies. RESEARCH DESIGN:
2.To study the financial structure and financial In the present study descriptive research is
position of the selected Indian Automobile being used. This type of research focused on what
Companies. is currently in existence, what can be the new facts
3.To identify and evaluate financial risks faced by and meaning. In this process the researcher
the automobile companies. observes, narrates and undertake documentation of
4.To examine the cash flow statements to the identified subject in a way it naturally happens.
understand the sources and uses of cash, ensuring a In the present study financial performance of
comprehensive understanding of the companies. selected automobile sector companies is observed,
5.To perform a SWOT analysis to identify the described & documented from the year 2014 to
selected automobile companies in the Indian 2023.
markets.
SAMPLE SELECTION:
SCOPE OF THE STUDY: The selection of the automobile sector is
The study also takes into account the based on its economic contribution made towards
various methodologies that are involved in bringing the Gross Domestic Product (GDP) of the country.
out the financial performances such as the ratio There are several auto businesses that are active
analysis and capital structure analysis. The study across around the nation. The research focused on
analyses the quantitative statistical tools which the firms that were deemed trustworthy in order to
gives clear picture about the Indian automobiles determine the representativeness of the top-
industries financial performance. This will not only performing automakers. The following is a list of
have account of the financial performance but also the many factors used to choose the sample.
other useful information such as value addition, a) The listed companies of the Bombay Stock
solvency and capital structure which will pave way Exchange (BSE) was taken as the first criteria
for the useful suggestions to the Indian automobiles based on which the selection of the sample was
sector. made. The first approach minimized the number of
companies to forty-eight that are listed on the BSE.
II. RESEARCH METHODOLOGY: b) The second step to finalize the selection of the
The research will focus on automobile automobile industries was the ranking of the
businesses listed on the BSE and NSE as of companies based on the market capitalization.
February 10, 2022, with a market capitalization of
at least Rs.1000 Crore. This is an empirical study DATA COLLECTION:
that makes use of secondary data. This study is In the present study data has been collected by
centered on the automotive sector. Information using secondary source. The data is collected from
about the annual reports of the companies were the annual report, books, internet, magazines,
source of the research. In order to evaluate the newspaper etc. In the present study primary data is
financial performance of a few car companies. A not considered because study deals with financial
ratio were utilized for financial metrics, such as performance which itself is historical in nature.
those that measure liquidity, profitability, solvency,
and efficiency. The report describes the current TOOLS USED FOR ANALYSIS:
state of things and evaluates how well the many Following tools were used by the researcher for the
metrics that make up the automotive industry's study.
financial showcase are doing. The research makes  Trend analysis
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 Ratio analysis performed well on the front of short-term solvency

 ANOVA for testing the hypothesis and the reason behind such growth is that the
companies have gone through liberalization and
PERIOD OF STUDY: made use of the flow of the FDI.
The secondary data was collected for a period of
ten years from 2014 to 2023 Ansari and Rehman (2021)3 have made an effort
to contrast the financial success of conventional
III. REVIEW OF LITERATURE: and Islamic banks. The research was conducted
Islam (2023)1 sought to gauge Nationalized Bank between 2006 and 2009, a span of four years.
Limited's financial performance. The researcher Researchers utilized 18 financial parameters to
studied two time periods—2008–2010 and 2011– assess the profitability, liquidity, risk, solvency,
2013—to see if there was a relationship among a capital sufficiency, deployment, and operational
bank's years in business and its performance. effectiveness of both banks. The researchers also
The researcher employed financial ratio analysis to employed an independent sample t test and an
assess the National Bank Limited's financial ANOVA to assess the implication of mean
performance in terms of profitability, liquidity, and differences in these chosen ratios across and among
credit performance. Additionally, a student "t" test banks. The study came to the conclusion that
was performed to evaluate the hypothesis. It was Islamic banks were more operationally effective,
discovered that overall profitability, liquidity, and more liquid, and less risky than conventional
credit performance all increased from 2008 to 2011 banks.
but then started to fall in 2012 and 2013.
Additionally, throughout that time, Bank grew the Regina M. Lizares Carlos C. Bautista, (2021)4
amount of their portfolio. The financial distress of 263 businesses listed on
the Philippine stock exchange was determined
Nilafor Nisha. A., and David Soundararajan. S. using the mixed Logit model and industry
(2022)2 made a study on “Liquidity Analysis of related factors from 1995 to 2018. The data, as
Selected Automobile Companies in India”. The well as the data set and explanatory variables, were
introduction deals with the importance of acquired from the Thomson Return and World
transport sector and the growth of the Scope databases. Financial distress among firms
automobile industry in India. The statement of assists financial institutions in funding and
the problem reveals the multiplier effect and the policymaking, according to the study's findings.
employment generating capacity of the sector. The
review of literature gives an account of various Singhal PK (2020)5 They assessed the financial
studies carried out in this field of study. The performance of the two main banks operating in
objective of the study is to assess the short-term northern India. Mean and standard deviation were
financial position of the selected automobile employed as statistical tools to analyse the data,
companies in India. The period of the study covers and CAMEL (capital adequacy, asset quality,
ten years from 2005-2014. The study has taken management competency, earning capacity, and
seventeen companies for the study that has been liquidity) criteria were utilized to evaluate the
listed in the BSE. The statistical tools used for the results. The research's findings indicate that the
analysis are mean, standard deviation and ANOVA. banks under consideration were in a solid and
The study concluded that the companies have favourable condition.

ANALYSIS OF STUDY:
TREND ANALYSIS:

TABLE SHOWING THE NET SALES & PROFIT AFTER TAX OF TATA MOTORS 2013-2014 TO
2022-2023
YEARS NET SALES PROFIT AFTER TAX
2014 2,30,677.10 14,104.18
2015 2,60,734.33 14,059.65
2016 2,69,560.11 11,100.72
2017 2,65,498.47 6,063.56

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2018 2,88,596.09 6,813.10

2019 2,99,190.59 -28,933.70
2020 2,58,594.36 -10,975.23
2021 2,46,972.17 -13,016.14
2022 2,75,235.23 -11,234.70
2023 3,42,874.58 2,353.49
SOURCE: SECONDARY DATA

INTERPRETATION: However, starting from 2016-2017, there is a

The Net sales of the company have shown decline in profits, with a significant drop in 2018-
a general increasing trend over the years, starting 2019, where the company incurred a loss of ₹-
from ₹2,30,677.10 in 2013-2014 and reaching 28,933.70. The years 2015-2016 and 2018-2019
₹3,42,874.58 in 2022-2023. There is some appear to be critical points in the company’s
fluctuation in between, but the overall trend is financial performance. In summary, the company
upward, indicating growth in the company’s has faced both challenges and successes over the
revenue. The profit shows a positive trend until years, with a recent positive shift in profitability.
2015-2016, where it was at its peak of ₹14,104.18.

TABLE SHOWING THE NET SALES & PROFIT AFTER TAX OF MARUTI SUZUKI 2013-2014 TO
2022-2023

YEARS NET SALES PROFIT AFTER TAX

2013-2014 43,271.80 2,831.60
2014-2015 49,295.00 3,790.60
2015-2016 56,452.80 5,378.30
2016-2017 66,924.70 7,338.20
2017-2018 78,117.10 7,717.40
2018-2019 83,038.50 7,494.90
2019-2020 71,704.80 5,559.20
2020-2021 66,571.80 4,220.10
2021-2022 83,799.80 3,717.60
2022-2023 1,12,511.30 8,033.60
SOURCE: SECONDARY DATA

INTERPRETATION: fluctuations in the growth rate. The highest profit is

There’s a noticeable growth in sales, observed in 2023 at ₹8,033.60. In 2020, there is a
indicating that the company has been successful in dip in both net sales and profit, which could be
expanding its revenue. The net sales of the attributed to various factors, such as economic
company have shown a generally increasing trend downturns, global events, etc. The year 2023 stands
over the years, starting at ₹43,271.80 in 2014 and out with a substantial increase in net sales and
reaching ₹1,12,511.30 in 2023. The profit has profit.
consistently increased over the years, with

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TABLE SHOWING THE NET SALES & PROFIT AFTER TAX OF MAHINDRA & MAHINDRA
2013-2014 TO 2022-2023

YEARS NET SALES PROFIT AFTER TAX

2013-2014 66,930.97 4,323.38
2014-2015 63,862.55 2,592.68
2015-2016 74,762.30 2,708.47
2016-2017 82,069.37 3,151.13
2017-2018 90,770.68 6,850.53
2018-2019 1,03,015.23 4,650.33
2019-2020 74,304.07 1,685.54
2020-2021 72,678.98 2,425.26
2021-2022 89,353.96 5,397.22
2022-2023 1,19,040.38 9,869.04
SOURCE:SECONDARY DATA

INTERPRETATION: experienced fluctuations over the years, with the

There’s variability in net sales, with some highest recorded in 2022-2023 at ₹9,869.04. In
years experiencing growth and others showing a 2019-2020, there is a significant decrease in both
decline. The company’s net sales shows a net sales and profit. The year 2022-2023 stands out
fluctuating pattern over the years, starting at with a substantial increase in both net sales and
₹66,930.97 in 2013-2014 and reaching profit. The exceptional growth in 2022-2023 is a
₹1,19,040.38 in 2022-2023. The profit has also positive sign.

TABLE SHOWING THE NET SALES & PROFIT AFTER TAX OF TOYOTA KIRLOSKAR 2013-
2014 TO 2022-2023
YEARS NET SALES PROFIT AFTER TAX
2013-2014 1,224.90 77.68
2014-2015 1,358.04 85.58
2015-2016 1,110.68 100.33
2016-2017 1,130.63 119.39
2017-2018 1,687.70 68.05
2018-2019 2,160.96 131.74
2019-2020 1,867.90 150.63
2020-2021 1,994.78 311.45
2021-2022 3,725.84 316.18
2022-2023 6,412.85 459.53
SOURCE: SECONDARY DATA

INTERPRETATION: The profit has also experienced a notable increase

The net sales of the company have shown over the years, with the highest recorded in 2022-
a consistent upward trend over the years, starting at 2023 at ₹459.53. 2015-2016 could be considered a
₹1,224.90 in 2013-2014 and reaching ₹6,412.85 in turning point where net sales decreased despite a
2022-2023. There is a substantial growth in net slight increase in profit. The company has
sales, suggesting that the company has expanded its maintained positive profits throughout the period,
business and increased its revenue significantly. indicating a sustained level of profitability.

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TABLE SHOWING THE NET SALES & PROFIT AFTER TAX OF ASHOK LEYLAND 2013-2014 TO
2022-2023

YEARS NET SALES PROFIT AFTER TAX

2013-2014 11,334.22 -231.71
2014-2015 15,163.92 -213.97
2015-2016 20,870.80 790.66
2016-2017 22,494.70 1,647.01
2017-2018 29,055.22 1,819.98
2018-2019 32,753.24 2,183.32
2019-2020 21,748.12 456.91
2020-2021 19,454.10 -69.10
2021-2022 26,237.15 -292.97
2022-2023 41,488.30 1,350.91
SOURCE : SECONDARY DATA

INTERPRETATION: 2014-2015, indicating financial challenges during

There is a noticeable increase in net sales those years. The decrease in net sales and profit in
from 2013-2014 to 2018-2019, followed by a 2019-2020 and 2020-2021 might have been
decline in the subsequent years. The net sales of the influenced by various factors. The year 2022-2023
company have shown a fluctuating pattern over the stands out with a substantial increase in net sales
years, starting at ₹11,334.22 in 2013-2014 and and a positive profit indicating potential successful
reaching ₹41,488.30 in 2022-2023. The company strategic initiatives.
experienced negative profits in 2013-2014 and

RATIO ANALYSIS:
CURRENT RATIO
TABLE

YEARS/ TATA MARUTI MAHINDRA & TOYOTA ASHOK

COMPANIES MOTORS SUZUKI MAHINDRA KIRLOSKAR LEYLAND

2014 1.04 1.77 1.44 1.07 0.9

2015 1.01 0.97 1.18 1.06 1
2016 1.03 0.72 1.2 1.11 1.1
2017 1 0.66 1.22 1.41 1.1
2018 0.95 0.51 1.2 4.61 1
2019 0.85 0.87 1.18 2.6 1.1
2020 0.85 0.75 1.19 1.46 1
2021 0.93 1.15 1.4 2.21 1
2022 0.98 0.99 1.34 1.42 1
2023 0.98 0.58 1.29 1.74 1.1
Mean 0.962 0.8970 1.2640 1.8690 1.0300
Std. Deviation 0.678 0.365 0.975 1.086 0.674
The table 4.5 reveals the current ratio of automobile companies.

TATA MOTORS: 2014 & lowest current ratio is in the years 2019 &
The mean of the current ratio stands at 2020. The S.D elucidates the fact that the current
0.962 times from the above data which explains ratio has a deviation of 0.678 times from the
that the average of the current ratio of the company average current ratio. Overall, company had
is 0.962 times which means that for every 1₹ of maintained a good liquidity position.
current assets company is having 0.962₹ of current
liabilities. The highest current ratio is in the year MARUTI SUZUKI:

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From the above data it can be concluded TOYOTA KIRLOSKAR INDIA:

that average current ratio of the company is 0.8970 From the above data it can be concluded
times which means that for every 1₹ of current that average current ratio of the company is
assets company is having 0.8970₹ of current 1.030times which means that for every 1₹ of
liabilities. The S.D illustrates the fact that the current liabilities company is having 1.030₹ of
current ratio has a deviation of 0.365 times from current assets. The S.D illustrates the fact that the
the average current ratio. The highest current ratio current ratio has a deviation of 1.086 times from
is in the year 2014 & lowest current ratio is in the the average current ratio. The highest current ratio
year 2018. Overall, the company had maintained a is in the year 2018 & lowest current ratio is in the
good liquidity position. year 2015. Overall, the company had maintained a
good liquidity position.
MAHINDRA & MAHINDRA:
From the above data it can be concluded that ASHOK LEYLAND:
average current ratio of the company is 1.2640 From the above data it can be concluded
times which means that for every 1₹ of current that average current ratio of the company is 0.8970
liabilities company is having 1.2640₹ of current times which means that for every 1₹ of current
assets. The S.D illustrates the fact that the current assets company is having 0.8970₹ of current
ratio has a deviation of 0.674 times from the liabilities. The S.D illustrates the fact that the
average current ratio. The highest current ratio is in current ratio has a deviation of 0.365 times from
the year 2014 & lowest current ratio is in the years the average current ratio. The highest current ratio
2015 & 2019. Overall, the company had is in the year 2016,2017,2019,2023 & lowest
maintained a good liquidity position. current ratio is in the year 2014. Overall, the
company had maintained a good liquidity position.

DIVIDEND PER SHARE(DPS)

TABLE

YEARS/ TATA MARUTI MAHINDRA & TOYOTA ASHOK

COMPANIES MOTORS SUZUKI MAHINDRA KIRLOSKAR LEYLAND
2014 5 12 18 5 0
2015 5 25 12 27 0.95
2016 0 25 15 24 0.45
2017 0 35 8 65 0.01
2018 0 75 15 23 0.01
2019 0 80 9.5 36 3.1
2020 0 80 -1.02 16 0.5
2021 0 60 18 - 0.6
2022 0 45 13 32 1
2023 0 60 20 30 2.6
Mean 1.00 49.70 12.74 28.67 0.92
Std. Deviation 2.11 24.87 6.15 16.44 1.08

TATA MOTORS: MARUTI SUZUKI:

From the given above data it can be seen From the above data it can be seen that
that average dividend per share is ₹1.00. The S.D average dividend per share is ₹49.70. The S.D
elucidates the fact that the dividend per share has a elucidates the fact that the dividend per share has a
deviation of ₹2.11 from the average Dividend per deviation of ₹24.87 from the average Dividend per
share .There is no dividend per share in the years share . The lowest dividend per share was declared
2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023. It in the year 2014 & highest in the years 2019, 2020.
shows that company has not paid regular dividend Overall, it shows that company paid regular
to its shareholders. dividend to its shareholder.

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MAHINDRA & MAHINDRA: share . The lowest dividend per share was declared
From the above data it can be seen that in the year 2014 & highest in the years 2017.
average dividend per share is ₹12.74. The S.D Overall, it shows that company paid regular
elucidates the fact that the dividend per share has a dividend to its shareholder.
deviation of ₹6.15 from the average Dividend per
share . The lowest dividend per share was declared ASHOK LEYLAND:
in the year 2020 which shows a negative result & From the above data it can be seen that
highest in the years 2023. Overall, it shows that average dividend per share is ₹0.92. The S.D
company paid regular dividend to its shareholder. elucidates the fact that the dividend per share has a
deviation of ₹1.08 from the average Dividend per
TOYOTA KIRLOSKAR: share . The lowest dividend per share was declared
From the above data it can be seen that in the year 2014 & highest in the years 2019.
average dividend per share is ₹28.67. The S.D Overall, it shows that company paid regular
elucidates the fact that the dividend per share has a dividend to its shareholders.
deviation of ₹16.44 from the average Dividend per

DEBT/EQUITY RATIO
YEARS/ TATA MARUTI MAHINDRA & TOYOTA ASHOK
COMPANIES MOTORS SUZUKI MAHINDRA KIRLOSKAR LEYLAND
2014 0.84 0.09 1.21 0.22 2.4
2015 1.23 0.01 1.14 0.11 2
2016 0.78 0 1.16 0.12 1.6
2017 1.28 0.01 1.35 0.11 1.6
2018 0.82 0 1.23 0.05 1.6
2019 1.51 0 1.35 0.1 1.7
2020 1.58 0 1.56 0.31 2.1
2021 2.08 0.01 1.43 0.17 2.3
2022 3.13 0.01 1.58 0.5 3.3
2023 2.77 0.02 1.57 0.32 3.6

TATA MOTORS: MAHINDRA & MAHINDRA:

The above data reveals that average long term The above data reveals that average long
debt to equity ratio was 1.60 times which suggest term debt to equity ratio was 1.36 times which
that for every 1 ₹ of debt there is a 1.60₹ of suggest that for every 1 ₹ of debt there is a 1.36₹ of
shareholders fund in the company. The S.D shareholders fund in the company. The S.D
elucidates the fact that the debt to equity ratio has a elucidates the fact that the debt to equity ratio has a
deviation of 0.82 times from the average debt to deviation of 0.17 times from the average debt to
equity ratio . Company had lower debt in the year equity ratio . Company had lower debt in the year
2018 while company had highest debt/equity ratio 2015 while company had highest debt/equity ratio
in the year 2022.This suggest that solvency position in the year 2022.This suggest that solvency position
of the company was sound. of the company was sound.

MARUTI SUZUKI: TOYOTA KIRLOSKAR INDIA:

The above data reveals that average long term The above data reveals that average long
debt to equity ratio was 0.02 times which suggest term debt to equity ratio was 0.20 times which
that for every 1 ₹ of shareholders fund there is a 2 suggest that for every 1 ₹ of shareholders fund
paise of debt in the company. The S.D elucidates there is a 20 paise of debt in the company. The S.D
the fact that the debt to equity ratio has a deviation elucidates the fact that the debt to equity ratio has a
of 0.03 times from the average debt to equity ratio . deviation of 0.14 times from the average debt to
Company had no debt in the years 2016, 2018 & equity ratio . Company had lower debt in the year
2019 while company had highest debt/equity ratio 2018 while company had highest debt/equity ratio
in the year 2014.This suggest that solvency position in the year 2022.This suggest that solvency position
of the company was sound. of the company was sound.

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ASHOK LEYLAND: deviation of 0.71 times from the average debt to

The above data reveals that average long equity ratio . Company had lower debt in the years
term debt to equity ratio was 2.22 times which 2016, 2017, 2018 while company had highest
suggest that for every 1 ₹ of debt there is a 2.22₹ of debt/equity ratio in the year 2023.This suggest that
shareholders fund in the company. The S.D solvency position of the company was sound.
elucidates the fact that the debt to equity ratio has a

ANOVA ANALYSIS:
TABLE SHOWING THE ANALYSIS OF VARIANCE ANOVA
ANOVA
Model Sum of Squares df Mean Square F Sig.
1 Regression 57.856 5 11.571 1.878 .281b
Residual 24.644 4 6.161
Total 82.500 9
a. Dependent Variable: YEARS/COMPANIES
b. Predictors: (Constant), ASHOK LEYLAND, TOYOTA KIRLOSKAR, TATA MOTORS,
MARUTI SUZUKI, MAHINDRA & MAHINDRA
SOURCE: SPSS

INTERPRETATION: is 6.161. The p-value for the F-statistic is greater

The model’s regression has a Sum of than 0.05, suggesting that the model may not be
squares(SS) is 57.856 and its mean square(MS) is providing a significant improvement over a model
11.571, the F-statistic is 1.878. The residuals have a with no predictors.
Sum of Squares(SS) is 24.644 and its mean square

TABLE SHOWING ANALYSIS OF VARIANCE COEFFICIENT

Coefficients

Unstandardized 95.0% Confidence

Coefficients Interval for B
Standardized Lower Upper
Model B Std. Error CoefficientsBeta T Sig. Bound Bound
1 (Constant) 1986.224 47.612 41.717 .000 1854.033 2118.415

TATA MOTORS 28.348 32.101 .560 .883 .427 -60.778 117.474

MARUTI SUZUKI 3.411 3.298 .421 1.034 .359 -5.747 12.569
MAHINDRA & -14.279 26.751 -.646 -.534 .622 -88.551 59.992
MAHINDRA
TOYOTA .323 1.693 .111 .191 .858 -4.378 5.023
KIRLOSKAR
ASHOK LEYLAND 31.781 42.075 .734 .755 .492 -85.038 148.599
a. Dependent Variable: YEARS/COMPANIES

SOURCE:SPSS

INTERPRETATION: coefficient value is 3.411, the standardized

The constant term of the coefficient coefficient is 0.421 and the t-statistic is 1.034 and
intercepted is 1986.224 , the calculated standard the associated p-value is 0.308. The calculated
error is 47.612 and the t-statistic is 41.717. The value for Mahindra & Mahindra is -14.279, the
unstandardized coefficient value for Tata Motors is standard coefficient is -0.646 and the t-statistic is -
28.348, the standardized coefficient is 0.560 and 0.534 and the associated p-value 0.622. The Toyota
the t-statistic is 0.883 and also the associated p- Kirloskar’s unstandardized coefficient is 0.323 and
value is 0.359. The Maruti Suzuki’s unstandardized the standardized is 0.111 where as, the t-statistic is

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 International Journal of Humanities Social Science and Management (IJHSSM)
Volume 4, Issue 2, Mar.-Apr., 2024, pp: 1099-1109 www.ijhssm.org

0.191 and the associated p-value is 0.858. The significant based on their p-values.
predictor variables may not be statistically

TABLE SHOWING THE ANALYSIS OF VARIANCE MODEL SUMMARY

Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .983a .966 .924 .835
a. Predictors: (Constant), ASHOK LEYLAND, TATA MOTORS, TOYOTA KIRLOSKAR, MAHINDRA &
MAHINDRA, MARUTI SUZUKI
SOURCE: SPSS

INTERPRETATION: production processes and reducing unnecessary

The table shows the Model 1, R=0.983, R expenses.
square(Coefficient of Determination)=0.966,  Provide recommendations on debt
Adjusted R square = 0.924, Std. Error of the restructuring if necessary, considering the
estimate is 0.835. The high R value(0.983) suggests impact on interest costs and overall financial
a strong overall correlation between the predictors stability.
and the dependent variable. And the high R square  Analyze the possible advantages of strategic
value(0.966) indicates that the model explains a alliances or partnerships to improve innovation
substantial amount of the variability in dependent and market visibility.
variable. The adjusted R square(0.924) suggests  Emphasize how important it is to keep up with
that the model1 is still effective when accounting technology developments and use them if you
for the number of predictors. The low standard want to be competitive in your field.
error of the estimate(0.835)indicates a good fit of
the model to the data.
 Evaluate possible options for diversification to
reduce the risks brought on by shifting markets
and unstable economic conditions.
IV. FINDINGS:
• Analysing the revenue trends of the selected VI. CONCLUSION:
automobile companies over the past ten years. The financial performance metrics
• Calculating and analysing profitability ratios highlighted the companies' ability to generate
such as net profit margin, return on assets, debt revenue, manage costs, and sustain profitability
equity ratio. over the study period. Additionally, liquidity,
• Assessing the liquidity position through solvency, and efficiency ratios shed light on the
metrics like the current ratio and quick ratio. companies' capacity to meet short-term obligations,
• Examine the debt structure by analyzing the maintain a healthy capital structure, and optimize
debt-to-equity . resource utilization. For the purpose of making
• Evaluate the impact of debt levels on the well-informed decisions on investments, strategic
financial stability and risk profile of the planning, and policy development, industry players,
companies. legislators, and investors can use these results as
critical benchmarks. Even with the favorable
• Assess how innovation and technological
results, stakeholders still need to be on the lookout
advancements contribute to the financial
for changes in the automotive sector and adjust
performance of the companies.
accordingly. Proactive management techniques and
• Determine how well companies can meet ongoing observation are essential for dealing with
short-term obligations and identify any new problems and grasping chances. The study
liquidity challenges. adds to the corpus of information already available
• Identifying any correlations between market in financial analysis and provides a framework for
share and financial performance. further research in this exciting field. In conclusion
up, the financial performance study of the chosen
V. SUGGESTIONS: automotive industry not only improves our
 Recommend cost management strategies to comprehension of the economic environment of the
improve profitability, such as optimizing sector but also offers a framework for promoting

| Impact Factor value 7.52 | ISO 9001: 2008 Certified Journal Page 1108
 International Journal of Humanities Social Science and Management (IJHSSM)
Volume 4, Issue 2, Mar.-Apr., 2024, pp: 1099-1109 www.ijhssm.org

competitiveness and sustainable growth in a

constantly shifting global market.

REFERENCES:
[1]. Islam, M. A. (2023). An Analysis of
Financial Performance of Nationalized Bank
Limited Using Financial Ratios. Journal of
Behavioral Economics, Finance.
[2]. Nilafor Nisha, A, & David Soundararajan. S.
(2022). A study on liquidity analysis of
selected automobile companies in India,
Retrieved from Asia Pacific Journal of
Research, 1(33), 15-22.
[3]. Rehman, Z.M., Khan. N.M. & Khokhar, I.
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Petrochemical Industry in Saudi Arabia.
European Journal of Business and
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[4]. Ankit, D. Patel. (2020). Indian automobile
industry – A review. Retrieved from
International Multidisciplinary Research
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[5]. Singhal, P. K. (2020). An Analysis of Public
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Rating Model. International Journal of
Financial Management.

WEBSITES:
[6]. WWW.Google.com
[7]. WWW.Moneycontrol.com
[8]. WWW.Researchgate.com
[9]. http://shodhganga.inflibnet.ac.in

BOOKS:
[10]. Reddy. T.S., and Hari Prasad Reddy. Y.
(2009). Management Accounting.
[11]. Agrawal, M.R. (2010), “Financial
Management Principles and Practice”
[12]. Maheshwari, S.N. (2007), “Management
Accounting and Financial Control”
[13]. Pandey, I. M. (2004), “Financial
Management”

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