INDIAN AUTO ANCILLARY INDUSTRY – A STUDY ON THE FINANCIAL PERFORMANCE

India has been one of the largest auto market employing over 5 Million people directly and indirectly. In this paper, an attempt has been made to study the financial performance of 94 Auto Ancillary companies listed on the Stock Exchange. The study relates to the financial year ended 31st March 2020. The analysis of the key financial ratios relating to profitability, liquidity, solvency and efficiency of these companies reveals that the smaller auto ancillary companies are not financially healthy. 1/3rd of the companies (17 out of 51) having annual revenue of less than INR 500 Crores category is in financial distress and there is a possibility that they can become bankrupt. The Covid-19 impact would deteriorate the financial performance further in the financial year following. Support of the Government may be needed to help this sector.