A COMPARATIVE STUDY ON FINANCIAL PERFORMANCE OF

RELIANCE JIO INFO-COMM LIMITED AND BHARTI AIRTEL

LIMITED BY USING DUPONT APPROACH

REVIEW OF LITERATURE

&

DATA COLLECTION

SUBMITTED FOR THE PARTIAL FULFILLMENT OF

DEGREE OF B.COM (HONS.)

Under the supervision of - Submitted by-

Dr. Rakesh Kumar Yadav Soni Mawdi

Assistant Professor B.com 5th semester

1700509

DEPARTMENT OF ACCOUNTANCY AND LAW

FACULTY OF COMMERCE
DAYALBAGH EDUCATIONAL INSTITUTE
AGRA- 282005
OBJECTIVES OF THE STUDY

The objectives behind carrying the study are as follows:-

1. To measure financial performance of Bharti Airtel Limited and Reliance Jio Info-comm

limited in India using Extended DuPont approach.

2. To compare the financial performance of Bharti Airtel Limited and Reliance Jio Info-comm

limited.

REVIEW OF LITERATURE

 National journal/paper

 International journal/paper

NATIONAL JOURNALS/PAPERS (5+3)

S.NO. NAME OF YEAR TOPIC OF OBJECTIVES FINDINGS

AUTHOR JOURNALS/PAPE

RS

1. Khan 2018 Panel data analysis To examine the Lagged profit,

T., Shamim M. of profitability determinants of productivity, and

& Goyal J. determinants: profitability over size play a major

evidence from indian the period of 2004- role in explaining

telecom companies 2017 profitability,

whereas the effect

of industry

affiliation is trivial
2. Gaste M. & 2017 Financial To comparing the Profit and roce of

Hundekar V. performance of telecom companies bsnl company is

telecom companies financial very as compare to

performance. the airtel company.

3. AMIN, P. 2017 PERCEPTION STUDY The objective of This research helps

KALE,A. OF TELECOM USER
researchers was to us to understand the
NILAKANTAN, POST JIO PLANS
find out the specific
A.
perception of requirements of

mobile users about telecom users

services provided regarding various

by Reliance Jio. parameters such as

money spent, data

usage and preferred

service provider

based on age group.

4. Jan S. 2016 Financial Statements To determine The Long Term

Analysis of Idea operational Debt Ratio of Idea

Cellular & Reliance efficiency of both cellular is better

Telecommunications the companies by than Reliance

: A Comparative calculating Communication

Study Operating/Profitab showing that the

ility ratios. Idea cellular with a

high Long Term

 Debt to Equity is

considered to be

highly leveraged.

5. Pritish, 2015 An Analysis of the To analyze the It has been

Saxena, T. Indian Telecom history and concluded that the

Industry evolution of Indian Indian Telecom

Telecom Industry Industry contributes

and to review the significantly to the

Government overall socio-

Telecom policies economic

and to identify the development of

present trends and India. The various

the future growth telecom service

opportunities in providers offer

the Indian voice and data

Telecom Industry services to the

customers across

different regions of

the country.

6. Mishra A. , 2015 Comparative study To compare the This analysis

Singh M. , of major telecom level of proves that the

Mittal A. & providers in india satisfaction of the factors chosen for

 Soni A. indian determining the

telecommunication level of satisfaction

s’ customers of the customers are

significant except

for customer

services and

schemes.

7. Gopika, G. 2014 Growth and This study is done It has been

Development of to analyze the concluded that

Telecom Sector in historical growth recent years have

India – An Overview in telecom sector seen a tremendous

and know the growth in all facets

future of telecom services.

development

trends in telecom

sector.

8. Muthusamy A. 2012 A financial analysis To study the Among the six

of selected liquidity, telecommunication

telecommunication profitability and companies, the

companies in India turnover operating profit of

performance of Tata

selected private Communication is

telecommunication more consistent as

 companies in the Co-efficient of

India. variance is less.

Bharti Airtel is

having better

operation profit as

the average is

higher.

INTERNATIONAL JOURNALS/PAPERS (6+4)

S.NO. NAME YEAR TOPIC OBJECTIVES FINDINGS

1. Ramachandran, 2019 Financial To study the Omantel and

N. & Performance of financial health by Ooredoo have

Kelkar, A. Telecom Industry in calculating various enough short term

Sultanate of Oman ratios and by assets in all the

applying “Z- years of study

Score” model. except year 2016

where Omantel

shows a negative

working capital.

The companies

have not invested in

 excess assets during

the study period.

2. Kumar, R. 2019 Comparative analysis To find out the From the analysis it is

Puskar, B. of Reliance Jio with customer found that mostly the

Airtel, Vodafone satisfaction towards telecom user are

telecom service Reliance Jio and youngster Reliance

Airtel, Vodafone Jio is most accepted

services in service due to its

Gorakhpur, UP cheapest tariff thet

To find out the most bater than other

preferred telecom telecom service

services in provider imposed

Gorakhpur, UP . Rs35 tariff to get

incoming call but no

such restriction

imposed by Reliance

Jio

3. Muchori, S. 2018 Analysis of Return The paper aimed at The findings were

on Equity of Kenyan analysing the that the components

Telecommunication Kenyan of both the three

and Technology Telecommunicatio and five-step

Industry Using n and Technology dupont models, and

Industry’s return which involves

 dupont Model on equity using financial and

three step dupont operational

Model. strategies affected

the ROE.

4. Lonare, A. 2018 A Study on the To identify the There is a decrease

Swamy, R. Effect of Launch of factors influencing in the revenues

Shrivastava, S. Reliance Jio on the switching generated in the

Shah, V. Other behavior of quarter

Telecommunication telecommunication There is a

Service Providers in users in India. significant increase

India To study the in the market share

change in revenues captured by

of the major Reliance Jio since

Telecom and after its inception

the launch of because of the

Reliance Jio various marketing

strategies it has

used.

5. Sharma, V. 2017 Financial Resources To compare the Bharti Airtel is

Management: A financial performing better

Comparative Study performance than other

of Indian through Ratio telecommunication

Telecommunication analysis. companies in

 Sector To analysis the respect of earning

profitability of the capacity, the

selected average of net

companies. profit ratio of

Bharti Airtel

Company.

6. Satyanarayana, 2017 Impact of Reliance Impact of new Reliance Jio, new

D. Jio on Indian Mobile entrant Reliance entrant affects the

Rao , S. Industry; A Case Jio on competitive equilibrium in the

Krishnamurthy Study on Mergers strategies of rivals Mobile Industry

N. and Acquisitions of in the industry and and results in

Idea-Vodafone and to analyze the mergers and

Airtel-Telenor major changes in acquisitions of Idea

Indian Telecom Cellular with

Industry Vodafone and

Airtel with Telenor

India.

7. Khan, M. & 2016 Liquidity & To study the The performance of

Safiuddin, S. profitability liquidity vodafone has

performance performance of improved and it has

analysis of selected selected performed better

telecom companies companies. To than bharti airtel in

study the terms of return on

 profitability equity.

performance of

selected

companies.

8. RAJPUT, V. 2015 A Comparative To analyses and BSNL and IDEA

SHAH, R. Study of Financial evaluate the Cellular Ltd. both

Performance of Bsnl Liquidity position the companies are

and Idea Cellular in the selected major players in

Ltd. units. To analyses telecom sector in

and evaluate the India. After making

overall the comparative

profitability in the analysis of both the

selected units. firms i found that

performance of

IDEA Cellular Ltd.

is better than the

BSNL. Further it

has been observed

from the analysis

that BSNL has

made continuous

loss during the

study period which

 was the main

reason of weak

financial position of

BSNL

9. Bujaki, M. 2014 Financial ratios and Calculating and Note that the use of

strategy in the interpreting a leverage is a

canadian number of double-edged

telecommunications financial statement sword. When

sector ratios for three operating results

firms in the are strong, the

Canadian multiplier effect of

telecommunication leverage is

s sector. beneficial. When

operating results

are poor, higher

levels of leverage

multiply the

negative effects of

poor performance.

Thus highly

leveraged

companies may

have larger swings

 in their roes.

10. Upadhyaya, R. 2012 A Comparative Comparative Customers are more

Sharma, V. Study Of analysis of telecom satisfied with the

Telecommunication companies Airtel services of Airtel

Service Providers and BSNL by than services of

BSNL and Airtel using primary BSNL but in wire

Operating In sources of data in line and broadband

Gwalior Division Gwalior division the performance of

India of Madhya BSNL and Airtel

Pradesh. are almost similar.

DATA COLLECTION

Data is collected through secondary sources.

SECONDARY DATA COLLECTION SOURCE

Secondary data is collected from annual reports of the telecommunication company.

For the purpose of study, 3 years data is taken into consideration from 2016-17 to 2018-19.
REFERENCES

Journals:

1. Kathuria, R. , Kedia, M. & Sekhani, R. (2019) “A Study of the Financial Health of the

Telecom Sector”.

2. Jan, S. (2016) “Financial Statements Analysis of Idea Cellular & Reliance

Telecommunications: A Comparative Study”. Vol-2, Issue-7, 2016 ISSN: 2454-1362

3. Vijayalakshmi, S. & Sowndharya, K. (2017)” A Study on Financial Performance Analysis of

Bharti Airtel Limited” Volume 2 Issue 3 March 2017, ISSN: 2456-4559

4. Khan, M. and Safiuddin, S. (2016) “Liquidity & Profitability Performance Analysis Of

Selected Telecom Companies” Volume 1, Issue 8 (Issn-2455-6602)

5. Muthusamy, A. (2012) “A Financial Analysis Of Selected Telecommunication Companies In

India” volume 2, issue 8 issn: 2249-1058

6. Gaste, M. and Hundekar, V. (2017) “Financial Performance Of Telecom Companies “volume:

04 issue: 11 e-issn: 2395-0056

7. Mishra, A. , Singh M. , Mittal A. & Soni A. (2015) “Comparative study of major telecom

providers in india”.

8. Sharma, V. (2017) “Financial Resources Management: A Comparative Study of Indian

Telecommunication Sector”.

9. Muchori, S. (2018) “Analysis of Return on Equity of Kenyan Telecommunication and

Technology Industry Using dupont Model”.

10. Pritish, Saxena, T. (2015) “An Analysis of the Indian Telecom Industry” Volume 17, Issue

10 e-ISSN: 2278-487X, p-ISSN: 2319-7668

11. Gopika, G. (2014) “Growth and Development of Telecom Sector in India – An Overview”

Volume 16, Issue 9 e-ISSN: 2278-487X, p-ISSN: 2319-7668.

12. Satyanarayana, D. , Rao , S. Krishnamurthy (2017) “Impact of Reliance Jio on Indian

Mobile Industry; A Case Study on Mergers and Acquisitions of Idea-Vodafone and Airtel-

Telenor” ISSN Print: 2394-7500.

13. Upadhyaya, R. Sharma, V. (2012) “A Comparative Study Of Telecommunication Service

Providers BSNL and Airtel Operating In Gwalior Division India” Vol. 2 Issue 4 ISSN 2249-

6920.

BIBLIOGRAPHY

www.airtel.in

www.ril.com

www.moneycontrol.com