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JIMS 8M The Journal Of Indian Management And Strategy
Year : 2024, Volume : 29, Issue : 3
First page : ( 31) Last page : ( 40)
Print ISSN : 0973-9335. Online ISSN : 0973-9343.
Article DOI : 10.5958/0973-9343.2024.00018.8

Financial performances of select pharma companies in India during the covid period: A comparative study

Bhattacharya Prosenjit1, Dr. Ghosh Anirban2

1Research Scholar, Netaji Subhas Open University, Kolkata

2Professor of Commerce, Netaji Subhas Open University, Kolkata

Online published on 22 October, 2024.

Abstract

Purpose

The study is aimed to assess the state of business of Pharma Companies during the pandemic due to COVID-19. Though most corporate sectors were completely locked down during the 1st phase of the pandemic, the Pharma sector remained open as an emergency service to serve the people. The financial parameters of some selected companies in the pharma sector were analyzed to get an idea of their financial performances during the challenging time.

Design/Methodology/Approach

20 companies were selected from sectoral indices of NSE from its official website. Out of these 20 companies, only 7 companies were chosen randomly for this study. Secondary source of data were extracted from published annual reports of the companies. Ratios that were used to assess the state of financial performance were Debtors Turnover Ratio (DTR), Inventory Turnover Ratio (ITR), Current Ratio (CR), Debt Equity Ratio (DER), Operating Profit Ratio (OPR), Net Profit Ratio (NPR), Return on Net Worth (RoNW) Ratio and Earning per Share (EPS). The financial results of the companies under study were compared over the period of four years i.e. for the pre-and during the pandemic period. Statistical tools like simple mean, Hypotheses testing using ANOVA and Rank analysis were performed to arrive the conclusion.

Findings

Alternative hypotheses were accepted for Current Ratio, Net Profit Ratio, Operating Profit Ratio, Debtors Turnover ratio, Inventory Turnover ratio, Debt to Equity ratio and EPS, thus it is evident that during the study period significant changes took place to this ratios. But on the contrary Return on Net Worth Ratio, do not changed significantly during the period of study thus alternative hypotheses was accepted. From the rank analysis it may be concluded that Abbott, Pfizer and Torrent were the top three performers during the study period among the selected companies.

Originality/Value

The paper is original in nature which was notbeen published else where.

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Keywords

COVID, EPS, ANOVA, Financial statfinaenciaml peerfonrmantces, Rat io analysis.

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