Published Online:April 2025
Product Name:The IUP Journal of Accounting Research & Audit Practices
Product Type:Article
Product Code:IJARAP070425
DOI:10.71329/IUPJARAP/2025.24.2.143-155
Author Name:Vanlalmuana and K C Malsawmtluangi
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:143-155
The paper explores the determinants of profitability among India’s large-cap companies, addressing a critical research gap by focusing on the unique challenges faced by these firms. The study analyzes data from the top 20 large-cap companies listed on the BSE Index (January 2024) over a 5-year period (2019-2023), using advanced stepwise regression, to uncover the key financial and operational variables influencing profitability. The findings reveal the adverse effects of excessive debt reliance and inefficient fixed asset utilization on profitability, while highlighting the positive impacts of effective equity deployment and working capital management. These insights not only enhance the understanding of profitability dynamics in large-cap firms but also provide actionable strategies for policymakers, corporate leaders, and investors to optimize performance and ensure sustainable growth.
Profitability serves as a catalyst of financial health, reflecting a firm’s ability to generate returns effectively through efficient utilization of resources, ensuring long-term sustainability.