Measuring Productivity of BSE Listed Company in India: An Empirical Analysis of BSE 200 Companies

Abstract

This empirical analysis delves into the intricate relationship between efficiency scores and profitability among BSE-listed companies in India, focusing on the BSE 200 companies. The study reveals a nuanced scenario where higher efficiency scores often coincide with lower profitability, with variations observed across industries. Notably, sectors like Consumer Durables, Metal Products and Mining, and Tourism consistently demonstrate significant negative correlations between efficiency and profitability, suggesting potential challenges in balancing these metrics. However, exceptions such as Information Technology indicate that efficiency improvements need not always translate into negative profitability impacts. The findings underscore the complexity of measuring productivity in the Indian market and emphasize the necessity of industry-specific approaches for optimizing efficiency and profitability. While enhancing efficiency remains paramount for competitiveness, businesses must navigate the trade-offs between productivity gains and financial performance judiciously. Overall, this analysis contributes valuable insights for strategic decision-making and performance management in BSE-listed companies, offering a deeper understanding of the productivity landscape in the Indian market.