Disparity in Total Resources Growth and Its Impact on the Profitability: An Analytical Approach

The Indian textile industry is the most prominent sector of the economy and plays a crucial role in its growth and development. The study is based on secondary data collected from the websites of the leading textile companies in India. The purpose of this study is to determine the disparity between the total resource growth of the top Indian textile companies and its effect on profitability. Financial ratios and statistical tools are utilized to determine the profitability, disparity in resource growth, and its effect on the profitability of the leading textile companies in India. The relationship between total resources and gross profitability (profit before depreciation, interest, and taxes) is concluded to be positive but U-shaped in leading textile companies in India. The governance of profitability on capital employed (ROCE - return on capital employed) is superior to that of profitability on total resources (ROA-return on assets). Based on analysis and findings it is advised to invest in the current assets of the leading Indian textile firms to maximize returns until the profitability of the sales begins to decline (PBDIT) because the relationship between enhancement of resources and the profitability of the sales or gross profitability (PBDIT) is U-shaped.