Profitability Analysis of Pantaloon Retail India

Performance Evaluation and Ratio Analysis of Retail Industry in India

Financial Analysis of Pantaloon Retail India

Performance Evaluations & Ratio Analysis of Retailing Industry: A Case Study on Pantaloon Retail (India) Ltd

 


Introduction, Importance and Significance of the Study

The Indian organised retail sector is expected to grow at a CAGR of 22 per cent from Rs 939 billion in 2008-09 to Rs 2,570 billion in 2013-14. Accordingly, the organised retail penetration is likely to increase to 9.4 per cent in 2013-14 from 6.5 per cent in 2008-09. This growth would primarily be driven by improved consumer sentiments, owing to the revival in the global economy, and the expansions by major organised retailers planned over the next few years.  The expansion plans of several retailers had been put on hold in the past year due to cash crunch resulting from the economic slowdown. But with the resurgence in the equity markets and increase in internal accruals due to cost-rationalisation measures undertaken by retailers, players have commenced new store roll-outs. EBITDA margins improved to 9.3 per cent during 2008-09 and further to 10.2 per cent during July - December 2009 for select retailers. Going forward, it expected that EBITDA margins will be around 10-11 per cent.  The clothing & textiles and consumer durables verticals together constitute around 49 per cent of the organised retail market, which was valued at Rs 939 billion in 2008-09. The profitability of organised retailers largely depends on the share of national brands and private labels in the total product mix.

Rationale for the Study

The study of financial statement is prepared for the purpose of presenting a periodical review or report by the management of and deal with the state of investment in business and result achieved during the period under review. They reflect the financial position and operating strengths or weaknesses of the concern by properly establishing relationship between the items of the balance sheet and remove statements.  Financial statement analysis can be under taken either by the management of the firm or by the outside parties. The nature of analysis defers depending upon the purpose of the analysis. The analyst is able to say how well the firm could utilize the resource of the society in generating goods and services. Turnover ratios are the best tools in deciding these aspects.  Hence it is overall responsibility of the management to see that the resource of the firm is used most efficiently and effectively and that the firm’s financial position is good. Financial statement analysis does indicate what can be expected in future from the firm.

Objectives of the Study

The present study has been undertaken with the following objectives.

·         To study the growth and development of Retail India Ltd.

·         To study the trends in finance and analyze various elements in financial analysis.

·         To analyze the present promotion strategy of few brands in Retail sector in India.

·         To evaluate the financial position of Retail India Ltd as well Pantaloon Retail (India) Ltd.

·         To offer suggestions to improve financial position of the company.

·         To study the determinants of specification factors which can decide the success the Retaill promotion strategy.

·         To find out what role does advertising play in the Retail sector markets.

• To study the financial strengths and weaknesses of the firm.

Hypothesis for the Study

The following hypotheses will be formulated and tested in the present study:

H0: There is no significant improvement in the liquidity, leverage, and profitability and activity ratios of Pantaloon Retail (India) Ltd

H1: There is a significant improvement in the liquidity, leverage, and profitability and activity ratios of Pantaloon Retail (India) Ltd

Research Methodology

Sample Size

50 employees from Pantaloon Retail (India) Ltd.

Sample Design:

The survey method (questionnaires) will be selected as the most appropriate method to gather data from the employees.  The current study will be carried out by taking a case study of Pantaloon Retail (India) Ltd

Sources of Data

Literature bordering on different areas of Liquidity and working capital management is reviewed. Thus, this research will employ qualitative analysis, and semi- structured questions will be drafted based on the issues raised from the review of various literatures. In addition, materials from journal articles, textbooks and working papers will be also used. The use of internet and e-mails to send out questions will be explored where appropriate. Analysis on the company’s financial statement will be carried out in order to verify my findings.

Tools of Data Analysis

• The present study will apply qualitative tools like interview.

• The technique of ratio analysis will also use to examine the different aspects of liquidity of the company.

Expected Contribution from the Study

The most important contribution of this research work is its ability to show practically that the way working capital is manage, will have a significant impact on the profitability of firms and thus determines the market value its shareholders wealth. Efficient working capital management increases firms’ value and shareholders wealth; while inefficient working capital management may lead to a firm’s failure. The significance of Ratio Analysis lies in the fact that it presents facts on a comparative basis and enables the drawing of inferences regarding the performance of a firm. The use is not confined the finance managers alone. They are different parties interested in the ratio analysis for knowing the financial position of a firm for different purpose. The suppliers of goods on credit, banks, financial institutions, investors, shareholders and the management all make use of ratio analysis as a tool of evaluating the financial position and the performance of a firm.

Chapterisation

·         Introduction

·         Literature Review

·         Research Methodology

·         Data Analysis and Findings

·         Recommendations & Conclusion

 If you want Dissertations, Thesis, Case Studies on Retail Industry in India, Project Report on Ratio Analysis, Research Proposals, Term Papers, Research Projects, Assignments, Coursework, PowerPoint Presentations and Synopsis, than contact Mahasagar Publications, Mumbai, India by calling +91 9819650213 or +91 8081344446  or visit website www.projectspapers.com