Profitability is a measure of overall organizational efficiency in achieving the set-out goals. It is generally done with reference to capital employed or sales. Profitability analysis is considered for the purpose of planning the optimum level of activity which determines whether or not the firm profiting. The profitability may be calculated through profitability ratio such as gross profit ratio, net profit ratio, operating profit ratio, return on investment ratio, return on capital employed ratio. The nature of the study is descriptive and analytical research which is conducted on the basis of secondary data. The present study analyzes the profitability of ACC Ltd. and Ambuja Cement Ltd for the past five years i.e. from 20122013 to 2016-17 The study brings out some important information and analyses to reach into conclusion.
KEYWORDS: Profitability, Ratio, Organizational Efficiency, Operating Profit Ratio.
Introduction The cement industry is very prominent in India. Basically, the industry comes under the large scale industry segment. India is the second largest cement producing country in the world. The cement industry in our country has a pivotal role in the overall growth of the economy. Apart from contributing GDP, the industry provides employment opportunity for the millions of job seekers. ACC Limited is India’s one of the largest manufacturers of cement and ready mixed concrete. The company has 17 modern cement factories and more than 50 ready mixed concrete plants. ACC has a unique track record of innovative research, product development, and specialized consultancy services. Generally, ACC is the first cement company in the country to start Bulk Cement, especially for large customers.
Ambuja Cements is one of the most popular brands in the western India. The company was formerly known as Gujarat Ambuja Cement Limited. Generally, it is a major cement producing company in India. Now, the company is a part of the global conglomerate Lafarge Holcim. Currently, Ambuja Cement has a cement capacity of 29.65 million tons with five integrated cement manufacturing plants and eight cement grinding units across the country. Profitability plays a vital role in survival of a business. Profit is an important element to boost up business activities. But the measurement of the profit and profitability occupies important place in the financial analysis. The profitability analysis is the most important tools for knowing the financial strength and earning capacity of ACC Ltd and Ambuja Cement Ltd. in comparisons.
Objectives of the Study The following are the specific objectives of the study area:
