Profitability Analysis of Indian Information Technology Companies using DuPont Model

The purpose of a business organization is to make profit. The profitability analysis is done to throw light on the current operating performance and efficiency of business firms. The study covers three Information Technology companies viz Prism informatics, Frontier Info and STG Lifecare listed on BSE India. The study has been undertaken for the period of Six years from 2010 to 2015 and the necessary data has been obtained from capital line database. Financial performance of a firm which is assessed using profitability ratios like return on asset (ROA) returns on sales (ROS). We have also focuses on the DuPont model and calculated return on equity (ROE) to help investors to identify the nature of Indian Information technology companies and will also help to take decision regarding investment. To identify the relationship between Prism informatics, Frontier Info, STG Lifecare ROS, ROA and ROE the correlation coefficient has been calculated and results have been outlined in this paper.