A COMPARATIVE ASSESSMENT OF FINANCIAL PERFORMANCE OF SELECTED TEXTILE COMPANIES IN AHMEDABAD

The textile industry is one of the most significant sectors contributing to India’s economic growth, employment, and exports. Assessing the financial performance of textile companies is essential to understand their operational efficiency, profitability, and liquidity. The present study, titled “An Empirical Study on Financial Performance Indicators of Textile Companies in Ahmedabad,” aims to evaluate and compare the financial performance of two leading textile companies — Arvind Ltd and Nandan Denim Ltd — over a five-year period from 2020–21 to 2024–25. The analysis focuses on key financial performance indicators such as the Current Ratio, Return on Equity (ROE), and Return on Capital Employed (ROCE). Descriptive statistics and ANOVA (Analysis of Variance) techniques were applied to assess the differences in performance between the two companies. The results of the study reveal that there exists a statistically significant difference between the companies in terms of liquidity (Current Ratio), indicating that Nandan Denim Ltd maintains a stronger short-term financial position. However, no significant difference was found in profitability and capital efficiency indicators (ROE and ROCE), suggesting similar performance levels in terms of shareholder returns and utilization of capital. The findings highlight that while both firms show stable financial performance, their strengths differ across financial dimensions — with Arvind Ltd exhibiting marginally better profitability and Nandan Denim Ltd displaying better liquidity management. This study contributes to understanding the financial health and comparative performance of textile companies in Ahmedabad, offering insights for investors, policymakers, and corporate decision-makers.