Copyright © 2025 Authors retain the copyright of this article. This article is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

@article{184654,
        author = {Dr. R. SUNDAR and CA. P. SENTHIL MURUGAN},
        title = {IMPACT OF WORKING CAPITAL ON PROFITABILITY – WITH REFERENCE TO FERTILIZERS AND CHEMICAL INDUSTRY},
        journal = {International Journal of Innovative Research in Technology},
        year = {2025},
        volume = {12},
        number = {4},
        pages = {2771-2778},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=184654},
        abstract = {This study examines the impact of working capital management on the profitability of fertilizer and chemical companies in India over a ten-year period (2014–15 to 2023–24), with special emphasis on the years 2025–2029. Working capital, often referred to as the “circulating capital,” is crucial for ensuring business liquidity and operational efficiency. The research adopts a descriptive and analytical approach using a longitudinal research design to analyze current investments, inventories, trade receivables, and cash & cash equivalents of ten major fertilizer companies: Chambal Fertilizers, Coromandel International, Deepak Fertilizers, Fertilizers and Chemicals of Travancore, Gujarat State Fertilizers, National Fertilizers, Rashtriya Chemicals & Fertilizers, Madras Fertilizers, Southern Petrochemicals, and Mangalore Chemicals.
The study uses secondary data from the CMIE Prowess Database and company annual reports, applying percentage analysis, trend analysis, and comparative evaluation to interpret patterns and sector-wide performance. Findings reveal significant volatility in the initial years (2025–2026) with disinvestments, fluctuating inventory levels, and rising trade receivables. From 2027 onward, the sector shows stabilization through improved investment flows, controlled inventory management, and better receivable recovery. Liquidity trends remain mixed—while several companies display improved cash reserves, others suffer from persistent negative balances, indicating the need for financial restructuring and tighter working capital controls.  The study concludes that efficient working capital management directly impacts profitability and sustainability in the fertilizer sector. Strengthened capital allocation, technology-enabled inventory control, robust receivables management, and proactive liquidity planning are recommended for enhancing financial health and investor confidence. The results have practical implications for corporate decision-makers, policymakers, and investors in designing strategies to improve operational efficiency and achieve long-term sectoral growth.},
        keywords = {Working Capital Management, Profitability, Fertilizer Industry, Current Investments, Inventory Management, Trade Receivables, Liquidity, Financial Performance, Trend Analysis, India},
        month = {September},
        }