A STUDY ON FINANCIAL PERFORMANCE OF CERTAIN FOOD PROCESSING COMPANIES IN INDIA

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dc.contributor.advisorPRABHAVATHI, Y
dc.contributor.authorSUSHMITHA REDDY, CHEREDDY
dc.date.accessioned2019-05-02T04:28:45Z
dc.date.available2019-05-02T04:28:45Z
dc.date.issued2018
dc.descriptionD5683en_US
dc.description.abstractThe present study “A study on financial performance of certain food processing companies in India” was mainly aimed to study the financial performance of selected food processing companies, to analyze the efficiency of selected food processing companies and to estimate the business valuation of selected food processing companies in India. The study is based on secondary sources of data. Twenty six food processing companies listed in national stock exchange were purposively selected. The data pertaining to financial information of the selected food processing companies was obtained from published annual accounts and financial statements (balance sheet and profit and loss accounts) of the respective companies and data pertaining to estimate the valuation was obtained from the websites of moneycontrol.com, bseindia.com, rbi.com etc., The data was collected and analyzed to attain the stated objectives by using ratio analysis, factor analysis, logistic regression, data envelopment analysis and three stage free cash flow to equity model xvi The study revealed that for the company Manpasand Beverages Limited the financial ratios assessment over a five year period (2013 to 2017) the liquidity ratios indicated substantial improvement in liquidity position of the company, debt ratio inferred that the company’s dependency on outside lenders was very marginal. The total assets turn over showed decreasing trend as the company was in the phase of expansion. With respect to turnover ratios the average inventory and debtors turnover was nine times and seven times a year. The operating profit margin and net profit margin showed varying trend. Return on investment and return on equity were decreased. The market value of the share was higher compared to book value were showing an increasing trend. The study revealed that for the company Brittania Industries Limited the financial ratios assessment over a five year period (2013 to 2017) the liquidity ratios indicated substantial improvement in liquidity position of the company, debt ratio inferred that the company’s dependency on outside lenders was very marginal. The total assets turn over showed decreasing trend. With respect to turnover ratios the average inventory and debtors turnover was 18 times and 86 times a year. The profitability ratios with respect to operating profit margin and net profit margin were increased. Return on investment and return on equity showed varying trend. The market value of the share was higher compared to book value. The study revealed that for the company Nestle India Limited the financial ratios assessment over a five year period (2013 to 2017) the liquidity ratios indicated substantial improvement in liquidity position of the company, debt ratio inferred that the company’s dependency on outside lenders was very marginal. The total assets turn over showed varying trend. The turnover ratios with respect to the inventory turnover and debtors turnover on an average was 10.9 times and 103 times a year. The profitability ratios with respect to operating profit margin and net profit margin showed varying trend. Return on investment and return on equity ratios indicated varying trend. The market value of ratios showed varying trend. The study revealed that for the company American Dry Fruit (ADF) Foods Limited the financial ratios assessment over a five year period (2013 to 2017) the liquidity ratios indicated substantial varying trend in liquidity position of the company, debt ratio inferred that the company’s dependency on outside lenders was decreased. The total assets turn over showed varying trend. The turnover ratios with respect to the average inventory and debtors turnover was 6.3 times and 4.9 times a year. The profitability ratios with respect to operating profit margin and net profit margin showed varying trend. Return on investment and return on equity ratios indicated varying trend. The market value of ratios showed varying trend. xvii The study revealed that for the company GlaxoSmithKline Consumer Healthcare Limited the financial ratios assessment over a five year period (2012 to 2017) the liquidity ratios indicated substantial liquidity position of the company, debt ratio inferred that the company’s dependency on outside lenders was decreased. The total assets turn over showed varying trend. The turnover ratios with respect to the average inventory and debtors turnover was 9.5 times and 16.5 times a year. The profitability ratios with respect to operating profit margin and net profit margin showed varying trend. Return on investment and return on equity ratios indicated varying trend. The market value of ratios showed varying trend. The study revealed that for the company Tasty Bite Eatables Limited the financial ratios assessment over a five year period (2013 to 2017) the current ratio and quick ratio indicated substantial varying trend in liquidity position of the company. The debt ratios of the company indicated the company dependency on outside lenders was declining. The total assets turn over showed varying trend. The turnover ratios with respect to the average inventory turnover and debtors turnover was 10.9 times and 10.5 times a year. The profitability ratios with respect to operating profit margin and net profit margin showed varying trend. Return on investment and return on equity ratios indicated varying trend. The market value compared to book value showed increased trend. The study revealed that for the company Kwality Limited the financial ratios assessment over a five year period (2013 to 2017) the current ratio and quick ratio indicated substantial varying trend in liquidity position of the company. The debt ratios of the company indicated the company dependency on outside lenders was declining. The total assets turn over showed varying trend. The turnover ratios with respect to the average inventory and debtors turnover was 28.9 times and 4.2 times a year. The profitability ratios with respect to operating profit margin and net profit margin showed increasing showed varying trend. The profitability ratios related to investment i.e., return on investment, return on equity showed the decreasing trend. The market value of ratios showed increased trend. The study revealed that for the company Prabhat Dairy Limited the financial ratios assessment over a five year period (2013 to 2017) liquidity ratios indicated varying trend in liquidity position of the company. The debt ratios of the company indicated the company dependency on outside lenders was declining. The total assets turn over showed varying trend. The turnover ratios with respect to the average inventory and debtors turnover was 34 times and 14.4 times a year. The profitability ratios with respect to operating profit margin and net profit margin showed increasing showed varying trend. The profitability ratios related to investment i.e., return on investment, return on equity showed the decreasing trend. The market value to book value showed increasing trend. xviii The study revealed that for the company Coffee Day Enterprises Limited the financial ratios assessment over a five year period (2013 to 2017) the current ratio and quick ratio indicated varying trend in liquidity position of the company. The debt ratios of the company showed that the company dependency on outside lenders was varying over a five year period. The total assets turn over showed varying trend. The inventory was not maintained by the company and on an average debtors turnover was 45 times a year. The profitability ratios with respect to operating profit margin showed varying trend the net profit margin remained negative. Return on investment showed varying trend. The return on equity remained negative. The market value to book value showed increasing trend. The study revealed that for the company Apex frozen Limited the financial ratios assessment over a two year period (2016 to 2017) the current ratio was decreased and quick ratio was increased indicating varying trend in liquidity position of the company. The debt ratios of the company showed that the company dependency on outside lenders was slightly increased. The turnover ratios with respect to inventory and debtor turnover was 34.6 times and 11.5 times a year. The profitability ratios with respect to operating profit margin and net profit margin showed increasing trend Return on investment showed and return on equity showed increasing trend. The study revealed that for the company Heritage Foods Limited the financial ratios assessment over a five year period (2013 to 2017) the liquidity ratios current ratio and quick ratio revealed varying trend in liquidity position of the company. The debt ratios of the company showed varying trend. The turnover ratios with respect to inventory and debtor turnover was 17.2 times and 116 times a year. The total assets turnover ratio showed varying trend. The profitability ratios with respect to operating profit margin and net profit margin showed decreasing trend. The return on investment and return on equity showed varying trend. The market value of shares compare to book value was increased The study revealed that for the company DFM foods Limited the financial ratios assessment over a five year period (2013 to 2017) liquidity position of the company was increased till 2016 and decreased in 2017. The debt ratios of the company showed varying trend. On an average the inventory turnover was 19 times and debtors turn over showed varying trend. The total assets turnover ratio showed varying trend. The profitability ratios with respect to operating profit margin and net profit margin showed varying trend. The return on investment and return on equity showed varying trend. The market value of shares compare to book value was increased. xix The study revealed that for the company Hatsun Agro Products the financial ratios assessment over a five year period (2013 to 2017) liquidity position of the company was varying. The debt ratios indicated that the company dependency on lenders was decreasing. On an average the inventory turnover and debtors turnover were 16.6 and 146 times a year. The total assets turnover ratio showed varying trend. The profitability ratios with respect to operating profit margin and net profit margin showed varying trend. The return on investment and return on equity showed varying trend. The market value of shares compare to book value was increased over a five year period. The study revealed that for the company Future Consumer Limited the financial ratios assessment over a five year period (2013 to 2017) liquidity position of the company showed varying trend. The debt ratios indicated that the company dependency on lenders was less. On an average the inventory turnover and debtors turnover were 13 times and 12.76 times a year. The total assets turnover ratio showed varying trend. The profitability ratios with respect to operating profit margin and net profit margin showed varying trend. The return on investment and return on equity showed varying trend. The market value of shares compare to book value was increased over a five year period. The study revealed that for the company Khushi Ram Behari Lal (KRBL) Limited the financial ratios assessment over a five year period (2013 to 2017) liquidity position of the company showed varying trend. The debt ratios indicated that the company dependency on lenders was decreased. On an average the inventory turnover and debtors turnover were 1.6 times and 11.4 times a year. The total assets turnover ratio showed varying trend. The profitability ratios with respect to operating profit margin and net profit margin showed varying trend. The return on investment and return on equity showed varying trend. The market value of shares compare to book value showed varying trend. The study revealed that for the company Varun Beverages Limited the financial ratios assessment over a five year period (2013 to 2017) liquidity position of the company showed varying trend. The debt ratios indicated that the company dependency on lenders was decreased. On an average the inventory turnover and debtors turnover were 19.08 times and 50 times a year. The total assets turnover ratio showed varying trend. The operating profit margin showed the increasing trend and net profit margin showed varying trend. The return on investment was decreased and return on equity showed varying trend. The market value of shares compare to book value showed decreasing trend. xx The study revealed that for the company LT Foods Limited the financial ratios assessment over a five year period (2013 to 2017) liquidity ratios indicated varying trend liquidity position of the company. The debt ratios showed that the company dependency on outside lenders was decreased. The total assets turn over showed varying trend. With respect to turnover ratios the average inventory and debtors turnover was 2.7 times and 7.1 times a year. The operating profit margin and net profit margin showed varying trend. Return on investment and return on equity showed varying trend. The market value of the share was higher compared to book value were showing an increasing trend. The study revealed that for the company Lakshmi Energy and Foods Limited the financial ratios assessment over a five year period (2013 to 2017) the liquidity ratios indicated varying trend liquidity position of the company, The debt ratios showed that the company dependency on outside lenders was varying. With respect to turnover ratios the average inventory and debtors turnover was 1.5 times and 6.79 times a year. The total assets turn over showed varying trend. The operating profit margin and net profit margin showed varying trend. Return on investment and return on equity showed varying trend. The market value of the share was higher compared to book value were showing an increasing trend. The study revealed that for the company Parag Milk Foods Limited the financial ratios assessment over a five year period (2013 to 2017) the liquidity ratios indicated varying trend liquidity position of the company, The debt ratios showed that the company dependency on outside lenders was in decreasing trend. With respect to turnover ratios the average inventory and debtors turnover was 5.86 times and 7.27 times a year. The total assets turn over showed varying trend. The operating profit margin and net profit margin showed varying trend. Return on investment and return on equity showed varying trend. The market value of the share was higher compared to book value were showing an increasing trend. The study revealed that for the company SKM Egg Products Exports (India) Limited the financial ratios assessment over a five year period (2013 to 2017) the liquidity ratios indicated that the liquidity position of the company improved up to 2016 and decreased in 2017. The debt ratios showed that the company dependency on outside lenders was varying. With respect to turnover ratios the average inventory and debtors turnover was 6.4 times and 33.7 times a year. The total assets turn over showed varying trend. The operating profit margin and net profit margin showed varying trend. Return on investment and return on equity showed varying trend. The market value of the share was higher compared to book value were showed varying trend. xxi The study revealed that for the company Vadilal Industries Limited the financial ratios assessment over a five year period (2013 to 2017) the liquidity ratios indicated that the liquidity position of the company showed varying trend. The debt ratios showed that the company dependency on outside lenders was decreased. With respect to turnover ratios the average inventory and debtors turnover was 4 times and 23.6 times a year. The total assets turn over showed increasing trend. The operating profit margin and net profit margin showed varying trend. Return on investment and return on equity showed varying trend. The market value of the share was higher compared to book value were showed increasing trend. The study revealed that for the company Kovilpatti Lakshmi Roller Flour Mills (KLRF) Limited the financial ratios assessment over a five year period (2013 to 2017) the liquidity ratios indicated that the liquidity position of the company showed varying trend. The debt ratios showed that the company dependency on outside lenders was decreased. With respect to turnover ratios the average inventory and debtors turnover was 1.7 times and 11.45 times a year. The total assets turn over showed varying trend. The operating profit margin and net profit margin showed varying trend. Return on investment and return on equity showed varying trend. The market value of the share was higher compared to book value were showed varying trend. The study revealed that for the company Umang Diaries Limited the financial ratios assessment over a five year period (2013 to 2017) the liquidity ratios indicated that the liquidity position of the company showed varying trend. The debt ratios showed that the company dependency on outside lenders was decreased. With respect to turnover ratios the average inventory and debtors turnover was 5.8 times and 50.44 times a year. The total assets turn over showed varying trend. The operating profit margin and net profit margin showed varying trend. Return on investment and return on equity showed varying trend. The market value of the share was higher compared to book value were showed varying trend. The study revealed that for the company Kohinoor foods Limited the financial ratios assessment over a five year period (2013 to 2017) the liquidity ratios indicated that the liquidity position of the company was varying. The debt ratios showed that the company dependency on outside lenders was varying. With respect to turnover ratios the average inventory and debtors turnover was 1.16 times and 7.83 times a year. The total assets turn over showed increasing trend. The operating profit margin and net profit margin showed varying trend. Return on investment and return on equity showed varying trend. The market value of the share was higher compared to book value were showed increasing trend. xxii The study revealed that for the company Usher Agro Limited the financial ratios assessment over a five year period (2013 to 2017) the liquidity ratios indicated that the liquidity position of the company was decreasing. The debt ratios showed that the company dependency on outside lenders was increasing. With respect to turnover ratios the average inventory and debtors turnover was 7.4 times and 3.2 times a year. The total assets turn over showed varying trend. The operating profit margin and net profit margin showed varying trend. Return on investment ratios showed decreasing trend and return on equity showed varying trend. The market value of the share was higher compared to book value were showed varying trend. The study revealed that for the company Rei Agro Limited the financial ratios assessment over a five year period (2012 to 2016) the liquidity ratios indicated that the liquidity position of the company was decreasing. The debt ratios showed that the company dependency on outside lenders was varying. With respect to turnover ratios the average inventory and debtors turnover was 16.79 times and 2.55 times a year. The total assets turn over showed decreasing trend. The operating profit margin and net profit margin showed decreasing trend. Return on investment ratios showed varying trend and return on equity showed decreasing trend. The market value of the share was higher compared to book value were showed decreasing trend. The three subsequent high performing and low performing companies for the year 2013 were Future Consumer Limited, Kwality Limited, Nestle India Limited and KLRF Limited, Kohinoor Foods Limited, Coffee Day Enterprises Limited, for the year 2014 were Future Consumer Limited, Glaxo SmithKline Consumer Healthcare Limited, Kwality Limited and Lakshmi Energy and Foods Limited, KLRF Limited, Coffee Day Enterprises Limited, for the year 2015 were Brittania Industries Limited, ADF Foods Industries Limited, Glaxo SmithKline Consumer Healthcare Limited and Coffee Day Enterprises Limited, Lakshmi Energy and Foods Limited, Rei Agro Limited for the year 2016 were Prabhat Dairy Limited, Brittania Industries Limited, Kwality Limited and Rei Agro Limited, Coffee Day Enterprises Limited, Usher Agro Limited and for the year 2017 were Manpasand Beverages Limited, Brittania Industries Limited, Nestle India Limited and Umang Dairies Limited, Kohinoor Foods Limited, Usher Agro Limited. The results of the logistic regression revealed that there exists a positive relationship between performance of food processing companies with inventory turnover ratio and return on investment. xxiii The selected food processing companies were operating under variable returns to scale. For the year 2107 the average pure technical efficiency score of the food processing companies were ranging between 0.85 and 1.00. From 2008 to 2017 the pure technical inefficiency (PTIE) was lowest in Britannia (2 per cent) followed by companies Nestle India Limited (5 per cent), Glaxo Smithkline Consumer Healthcare Limited (7 per cent), and ADF Food Industries Limited (15 per cent) and the scale inefficiency (SIE) was lowest in Britannia (2 per cent) followed by companies ADF Food Industries Limited (3 per cent), Glaxo Smithkline Consumer Healthcare Limited (4 per cent), Nestle India Limited (6 per cent) and Manpasand Beverages Limited (16 per cent). The stock price of Britannia industries limited and Glaxo SmithKline Consumer Health Care Limited were overvalued while the stock of Nestle India Limited was undervalued. Hence Nestle is a good investment compared to Britannia industries limited and Glaxo SmithKline Consumer Health Care Limiteden_US
dc.identifier.urihttp://krishikosh.egranth.ac.in/handle/1/5810101538
dc.keywordsFINANCIAL, FOOD PROCESSINGen_US
dc.language.isoen_USen_US
dc.pages298en_US
dc.publisherAcharya N.G. Ranga Agricultural Universityen_US
dc.research.problemA STUDY ON FINANCIAL PERFORMANCE OF CERTAIN FOOD PROCESSING COMPANIES IN INDIAen_US
dc.subAgricultural Business Managementen_US
dc.subjectnullen_US
dc.themeA STUDY ON FINANCIAL PERFORMANCE OF CERTAIN FOOD PROCESSING COMPANIES IN INDIAen_US
dc.these.typeM.B.A.en_US
dc.titleA STUDY ON FINANCIAL PERFORMANCE OF CERTAIN FOOD PROCESSING COMPANIES IN INDIAen_US
dc.typeThesisen_US
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