Financial Performance of Software Industry in India: A Study in the Context of Profitability

Authors

  • Lalit Gupta
  • P. K. Jain

DOI:

https://doi.org/10.33516/rb.v40i0.61-82p

Keywords:

Indian Software Industry, Profitability Analysis, Impact of Recession, DuPont Analysis, Cash to Total Assets Ratio.

Abstract

Over the last couple of decades, the Indian software industry has carved a niche for itself in the global marketplace, in the process becoming a growth engine for the Indian economy. The top 5 software firms of India have emerged as strong global brands, currently accounting for nearly 50 percent of the industry's total software exports. USA and Europe form a significant share of the market of the Indian software exports; any financial and economic slowdown centered on these two, can have a significant impact on profitability and earnings of the Indian software industry, and in turn on the Indian economy.

This paper carries out an analysis of the profitability of the Indian software industry over a period of ten years, studying the impact of the global slowdown triggered by the financial crisis of 2008; it analyses the changing cash-holding pattern of the industry, carries out the DuPont analysis and compares the profitability ratios of the top 5 software companies of India with the rest of the industry.

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Published

2014-12-01

How to Cite

Gupta, L., & Jain, P. K. (2014). Financial Performance of Software Industry in India: A Study in the Context of Profitability. Research Bulletin, 40, 61–82. https://doi.org/10.33516/rb.v40i0.61-82p

Issue

Volume 40, December 2014

Section

Articles
Crossref
Scopus
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Europe PMC

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