Determinants of profitability of Indian telecommunication companies

The paper aims at ascertaining the determinants of profitability for telecommunication industry. We use the financial data of forty-eight telecommunication industry companies listed in the Indian stock exchanges. The result of the data shows that that working capital to total assets, working capital to operating expenditure, retained earnings to total assets, logarithm of sales and logarithm of PBIT by total assets emerge as major determinants of the financial performance of telecommunications. The results of the study may be used to compare with other foreign telecommunication companies to understand the determinants of profitability. Further studies can be undertaken for company wise analysis in telecommunication industry in India.