Indian textile industry has made a notable contribution towards developing the Indian economy. It contributes nearly 14% of the total industrial production and around 3% to the GDP of the country. It also provides gainful employment to millions of people in India. In the present situation of turbulent market conditions, the domestic companies have been forced to reorient their strategies for managing odds arising out of tremendous competition in the post-reform period. Some of them have been able to adapt themselves in the changed market conditions while the others have failed to do so. In this backdrop, the present study seeks to analyze the profitability status of eighteen selected companies in the Indian textile industry during the post-reform era. Moreover, a special emphasis has been laid on the consistency dimension of the earning capability of the selected companies.

A good number of studies on the analysis of profitability of different industry segments have been conducted in India and abroad during the last few decades. The major findings of some of the significant studies so far carried out on the issue relating to the profitability analysis have been presented in this section.

Eljelly (2004), in his study, examined the relationship between profitability and liquidity of some selected joint stock companies in Saudi Arabia. While assessing the liquidity of the companies, the study used cash conversion cycle and current ratio as measures of liquidity. The study observed, at the firm level, a significant negative relation between the firms’ profitability and their liquidity level as measured by current ratio, whereas at the industry level, the relationship was more significant when liquidity was measured by cash conversion cycle during the study period.

Business Strategy, Journal, Gross Profit Ratio (GPR), Operating Profit Ratio (OPR), Net Profit Ratio (NPR), Return on Capital Employed (ROCE), Return on Net Worth (RONW), Earnings Per Share (EPS), Nigerian Stock Exchange (NSE), Profitability Trends, Selected Textile Companies, Cash Conversion Cycle (CCC), Cross-Sectional Analysis