A Study On Financial Performance Analysis with Reference to Real Touch Finance

M Jayasree; G Thirumurugan

doi:10.36948/ijfmr.2023.v05i05.7882

A Study On Financial Performance Analysis with Reference to Real Touch Finance

Author(s)	M Jayasree, G Thirumurugan
Country	India
Abstract	The Indian financial sector boasts diversity and rapid expansion, featuring an array of financial institutions, including commercial banks, insurance companies, NBFCs, co-operatives, pension funds, and mutual funds. Among these, NBFCs play a pivotal role, contributing significantly to economic growth by offering credit and financial services to various sectors. This study undertakes a five-year analysis (2018-2022) of three selected NBFCs based on their Asset under Management (AUM), a key indicator of size and financial strength. The study evaluates short-term solvency, Leverage, profitability and earning capacity. Real Touch Finance Limited (RTFL) and Dharani Finance Limited exhibit consistent current ratios and favourable debt management. RTFL distinguishes itself with a positive trend in Return on Assets (ROA) and Return on Equity (ROE), reflecting its profit-generating ability. RTFL also excels in cost management, profitability, and interest-related earnings. All three NBFCs face challenges in profit generation. RTFL displays improved liquidity, long-term growth focus, a 6% rise in total revenue, but also a notable increase in administrative expenses. In summary, RTFL appears to be in a relatively stronger financial position compared to the others. However, its ability to manage cash effectively, make strategic investments, and address rising administrative expenses is pivotal for long-term financial stability and enhanced profitability. This study offers valuable insights for RTFL and other NBFC to identify opportunities for growth, potential threats, and areas for improvement for long-term success.
Keywords	Ratio analysis, NBFCs, Asset Under Management (AUM), Shareholders wealth, Liquidity management, Profitability, Financial position, Growth opportunities.
Field	Business Administration
Published In	Volume 5, Issue 5, September-October 2023
Published On	2023-10-24
Cite This	A Study On Financial Performance Analysis with Reference to Real Touch Finance - M Jayasree, G Thirumurugan - IJFMR Volume 5, Issue 5, September-October 2023. DOI 10.36948/ijfmr.2023.v05i05.7882
DOI	https://doi.org/10.36948/ijfmr.2023.v05i05.7882
Short DOI	https://doi.org/gszvj6

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A Study On Financial Performance Analysis with Reference to Real Touch Finance

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