Title: Analysing the financial state of selected Indian information technology companies: the assessment towards foreseeing the future of industry

Authors: Ashutosh Kolte; Avinash Pawar; Matteo Rossi; Digvijay Rasal

Addresses: Department of Management Sciences (PUMBA), Savitribai Phule Pune University, India ' Department of Management Sciences (PUMBA), Savitribai Phule Pune University, India ' Department of Law, Economics, Management and Quantitative Methods, University of Sannio, Italy ' Deutsche Bank Group, Pune, India

Abstract: The Indian economy is growing and has a huge potential market with ability to garner wide businesses due to unique business environment and reforms from the government. The economic indicator of comparative gross domestic products has indicated the accelerated growth for India from the last decade. Currently, Indian IT firms are targeting newer business domains with wide and newer footprints across the globe with acquiring new subsidiaries and incorporating new partnerships to fuel this growth. Moreover, Indian IT-ITES industry has a lower debt to equity profile and analysis of stocks is considered as safe investment. Therefore, it becomes essential to study and access the state of financial health in the industry. In this paper, the Indian IT-ITES industry is analysed with the help of financial metrics and standard models of Altman Z-score and Piotroski F-score to compare performance, predict solvency of companies, test the strength of the companies and foresee the future of Indian IT-ITES industry.

Keywords: information technology; IT industry; financial performance; Altman Z-score; Piotroski F-score; foreseeing future; industrial forecasting; India; software industry.

DOI: 10.1504/IJIPM.2022.124631

International Journal of Intellectual Property Management, 2022 Vol.12 No.3, pp.281 - 304

Received: 20 Apr 2020
Accepted: 07 Jun 2020
Published online: 31 Jul 2022 *

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