Analysis of consistent performance in income, expenses and profit items: a study of BSE thirty companies

Indian economy is characterized as having different sectors namely agriculture, automobile, power, information and technology, pharmacy, banking, etc. which contribute their own share to Gross Domestic Production (GDP). These sectors vary in respect of their scale of operations, from region to region and from state to state. These sectors play a key role in the overall economic development as they use a variety of resources for various economic activities by investing huge funds. In India, Bombay Stock Exchange (BSE) 30 Companies among all companies listed are the integral part of Indian financial system and they may be labeled as superpowers and frontrunners of Indian economy. BSE 30s have demonstrated their resilience as they stood to the testimony of the crisis in the recent past. In general, the companies invest huge funds including borrowed one at higher costs. The economic activities are to be carried on viably and consistently since there exists a cut throat competition in the market. The main objective of the companies is to earn income by striking a healthy balance between income and expenses. This article analyzes the income, expenses and profit items of BSE 30s for the period from 2011 to 2015. The objective of the study is to analyze the consistency in performance of BSE 30s with regard to their total income, total expenses and profit items and to award an overall rank based on the average t-Test score of all ranks secured for each of them. The consistency in performance is assessed with the help of two-tailed t-Test 5–1 (n-1), 0.05 (5%) = 2.776. The analysis reveals that Tata Consultancy Services (out of BSE 30s) has emerged as the most consistent overall performer in respect of total income, total expenses and profit items during the study period. The main limitation of this study is that the stakeholders may or may not consider the consistency in performance of BSE 30s while dealing with them including buying and selling of their securities since BSE 30s do not represent the whole Indian financial market.