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@article{207568,
        author = {Dr. Kongalappa H. S and Sandhyalakshmi},
        title = {A Trend Analysis of Profitability Ratios: A Study of Vinati Organics Limited (2015–16 to 2024–25)},
        journal = {International Journal of Innovative Research in Technology},
        year = {2026},
        volume = {13},
        number = {3},
        pages = {1484-1494},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=207568},
        abstract = {Profitability is the single most durable indicator of a manufacturing enterprise's capacity to survive input-cost shocks, fund capacity expansion from internal accruals, and reward the capital entrusted to it. The Indian specialty chemicals sector, in which Vinati Organics Limited occupies a globally significant niche as a leading producer of 2-Acrylamido-2-Methylpropane Sulphonic Acid (ATBS) and Iso Butyl Benzene (IBB), has passed through an unusually eventful decade marked by crude-linked feedstock volatility, the COVID-19 disruption, the China+1 relocation of global chemical sourcing, and a subsequent phase of margin compression driven by aggressive international price competition. The present study undertakes a ten-year trend analysis of the profitability performance of Vinati Organics Limited over the period 2015–16 to 2024–25 using five indicators: Net Profit Margin, Operating Profit Margin, Return on Assets, Return on Equity and Earnings Per Share. Secondary data drawn from the published annual reports and audited financial statements of the company were analysed using descriptive statistics, coefficient of variation, index numbers with 2015–16 as base, least-squares linear trend equations, Karl Pearson's coefficient of correlation and Student's t-test at the five per cent level of significance. The results reveal a company with structurally high but statistically stable margins: mean Net Profit Margin of 21.74 per cent and mean Operating Profit Margin of 30.12 per cent, neither exhibiting a statistically significant time trend. In contrast, the return-based measures deteriorate steadily, with Return on Equity declining at 0.913 percentage points per annum and Return on Assets at 0.482 percentage points per annum, while Earnings Per Share rises significantly at 5.183 rupees per annum. The study concludes that the divergence between a rising absolute earnings stream and falling ratio-based returns is symptomatic of an equity and asset base expanding faster than profits — a classic dilution-of-return effect arising from debt-free, internally funded capacity creation. Recommendations are advanced on asset-turnover improvement, capital allocation discipline and product-mix diversification.},
        keywords = {Earnings Per Share, Financial Performance, Profitability Ratios, Return on Equity, Specialty Chemicals, Trend Analysis, Vinati Organics Limited. JEL Classification—G32, L65, M41.},
        month = {August},
        }