An Empirical Study on COVID Impact on the Profitability of Pharmaceutical Industry in India: Panel Data Analysis

COVID pandemic has changes the world order, before that economies were stable and no such innovations or disruptions. When it hit the world, world economy become stagnant, supply chain constraints due to lockdowns. After the pandemic many new operating methods, supply chain management ideas, digital transformation, AI and automation has helped all the industries to revive for normal state. In this study we have analysed profitability of pharmaceutical companies in India, we have taken top 10 pharmaceutical companies from the year 2014-15 to 2022-23 for the analysis. The examination tool we used her ‘R’ software for panel data examination with pooled regression, Fixed effect model, Random effect model, Hausman test and first differencing. The dependent variable here is return on capital employed and the independent variables are current ratio, inventory turnover ratio, asset turnover ratio, return on equity, PBDITM, Net sales ratio, dummy variable and we assumed for during covid as 1 and other years as 0 in dummy variables to check the profitability of pharma companies during pandemic. In conclusion we get to know that the significant and insignificant variables, and the fit of the model for the analysis. The model is good enough to prove that the profitability is affected very significantly during the pandemic. There are some improvements also for the analysis, it would be better if we were able to get more than 25 companies’ data for the analysis. Here we got to know that the COVID has impact, but many organisations performed well and many faced challenges because of this factor the profitability after COVID and during COVID is showing significantly less.