A Study on Capital Structure Analysis and Profitability of Indian Tyres Industry

Capital structure is an important decision of the business to fix the mixture of debt and equity capital of the company. This study is on capital structure analysis and its impact on profitability of tyres industry in India. Researcher has taken 14 tyres companies listed under BSE and NSE. By studying Debt-Equity ratio. Objectives: Here major objective of this study is to know the relationship between Capital Structure and Profitability of Tyre Industry in India by studying all the listed companies in BSE and NSE. Study was undertaken by using five years data starting from 2009-10 to 2013-14. Methodology: As far as Research Methodology is concern here study is based on descriptive and analytical research design, by using convenient sampling, by using secondary sources of data and Durbin-Watson Statistics for testing hypotheses. Findings: From the study it is found that there was a significant relation between Capital structure (Debt-equity ratio) and Profitability of tyre companies. MRF, Apollo Tyres, Dunlop India and Modi Rubber are showing that relationship that ideal debt equity ratio helps to increase profitability of company. Scope of the Study: Study will be implemented and helpful to corporate managers, investors, researchers and management for framing and formation of capital structure of their company.