JK Tyres & Industries and Apollo Tyres Ltd. : analysis of key financial ratios and impact of Covid-19 on the companies
Nimbekar, Sukriti (2023)
2023
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2023060220727
https://urn.fi/URN:NBN:fi:amk-2023060220727
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Abstract
The outbreak of COVID‐19 pandemic not only caused a massive impact on the health of the people all over the world but also affected the socio‐economic activities of the countries all around the world. In their attempt to control the spread of pandemic, the governments of all the countries had to impose a nationwide lockdown, which affected their economies greatly. India too went through a similar phase. Through this research, an attempt has been made to study the impact of Covid-19 on two of the leading Indian tyre manufacturing companies.
JK Tyres & Industries and Apollo Tyres Ltd. are two of the leading tyre manufacturing companies in India. This research explores the financial position of the two companies by studying the impact of Covid-19 on the financial health and the internal organizational culture of the two companies and the efforts taken by them to overcome the financial and the organizational challenges under the Covid-19 situation.
Hybrid research, a combination of quantitative and qualitative research method, was used to achieve the objectives of the study. Firstly, using the annual financial statements of the two companies from 2017-18 to 2020-21, financial ratios were calculated and analysed to know the impact of Covid-19 on the financial position of both the companies. Secondly, thematic analysis was used to analyse the interview responses of the employees of the two organizations in order to study the impact of Covid-19 on the internal organizational culture of the two companies. Lastly, the research highlighted the measures taken by the two companies in the event of Covid-19.
Since the lockdown in India lasted for a period of one month, the impact of it on the financials of the two companies was clearly visible in terms of steep decline in revenue in the first quarter of the FY2021. But, due to strong resurgence in demand in the later quarters of FY2021, the annual revenue for the financial year came higher than its previous year. As a result, both Apollo and JK Tyres did not suffer on their annual top-line and bottom-line as compared to their previous year’s. Impact of covid on internal organizational culture was seen in terms of quickly shifting to work from home culture over digital platforms during lockdown period, confidence building gesture by the company in terms of payment of timely salary, paid leaves during and post lockdown period. Majority of the employees found their respective companies supportive and helpful during the time of pandemic.
The outbreak of COVID‐19 pandemic not only caused a massive impact on the health of the people all over the world but also affected the socio‐economic activities of the countries all around the world. In their attempt to control the spread of pandemic, the governments of all the countries had to impose a nationwide lockdown, which affected their economies greatly. India too went through a similar phase. Through this research, an attempt has been made to study the impact of Covid-19 on two of the leading Indian tyre manufacturing companies.
JK Tyres & Industries and Apollo Tyres Ltd. are two of the leading tyre manufacturing companies in India. This research explores the financial position of the two companies by studying the impact of Covid-19 on the financial health and the internal organizational culture of the two companies and the efforts taken by them to overcome the financial and the organizational challenges under the Covid-19 situation.
Hybrid research, a combination of quantitative and qualitative research method, was used to achieve the objectives of the study. Firstly, using the annual financial statements of the two companies from 2017-18 to 2020-21, financial ratios were calculated and analysed to know the impact of Covid-19 on the financial position of both the companies. Secondly, thematic analysis was used to analyse the interview responses of the employees of the two organizations in order to study the impact of Covid-19 on the internal organizational culture of the two companies. Lastly, the research highlighted the measures taken by the two companies in the event of Covid-19.
Since the lockdown in India lasted for a period of one month, the impact of it on the financials of the two companies was clearly visible in terms of steep decline in revenue in the first quarter of the FY2021. But, due to strong resurgence in demand in the later quarters of FY2021, the annual revenue for the financial year came higher than its previous year. As a result, both Apollo and JK Tyres did not suffer on their annual top-line and bottom-line as compared to their previous year’s. Impact of covid on internal organizational culture was seen in terms of quickly shifting to work from home culture over digital platforms during lockdown period, confidence building gesture by the company in terms of payment of timely salary, paid leaves during and post lockdown period. Majority of the employees found their respective companies supportive and helpful during the time of pandemic.