Financial analysis of automobile industries (A comparative study of Tata Motors and Maruti Suzuki)

The automobile industry has continued its growth trajectory over the past few years. The Indian automobile industry has vital role to play in the world’s automobile market. With the increasing growth in demand on back of rising income, expanding middle class and young population base, large pool of skilled manpower and growing technology, will be among the world's top five auto-producers by 2015.Profit is the engine that drives the business enterprise. There should be enough profits to every firm or business enterprise to survive and grow in the long run. Profitability means ability to make profit from all the business activities of an organization, company, firm, or an enterprise. It shows how efficiently the management can make profit by using all the resources available in the market. In this project, I have selected 2 automobile companies in India. The main objective of this project is to analyze the financial position of the selected automobile companies for last three years (2012-2014). My study is based on secondary data. Financial position is analysed by using different ratios. From the study, position of Maruti Suzuki & Tata Motors is ascertained. This project shows the change in profitability.