Study on Profitability of Manufacturing Industries

Few lines on manufacturing industry

India's manufacturing sector is a key driver of economic growth, contributing significantly to GDP and employment. Major industries include textiles, automobiles, pharmaceuticals, and electronics. The "Make in India" initiative has boosted domestic production and foreign investments. With a growing skilled workforce and robust infrastructure, India is emerging as a global manufacturing hub.

By examining financial performance indicators like return on equity (ROE), net profit margin, and capital structure, this study explores the variables impacting profitability in the Indian manufacturing sector. The study looks at connections between important financial variables, such as capital expenditure (CAPEX), earnings per share (EPS), operating profit margin, and total liabilities, using data from five publicly traded corporations during ten years (2014–2023). The results show that while EPS and operating profit margin show favourable correlations with ROE, CAPEX, COGS, and liabilities have a negative impact. In order to increase profitability and guarantee long-term sustainability in the manufacturing sector, the study emphasizes the significance of effective resource allocation, debt management, and revenue diversification.