India is among the top producers of sugar in the world. Easy availability of low cost manpower and preference of abundant referrers make India competitive in the global set up. Finance is needed for day to day operation. It can be considered as a life blood for business. Profitability is the profit earning capacity which is a crucial factor contributing for the endurance of the firms. The profitability level should maintain at increasing level in order to overcome this problem. In this paper an attempt has made to measure the profitability performance and to analyze the impact of selected ratios on return on total assets of the companies, for fulfillment of the objectives the data collected from the annual report from 2002-03 to 2011-12; the collected data is analyzed and computed to fit for drawing inferences. The statistical techniques used are correlation and multiple regression analysis to find out the relationship between the variable and to identify the factor influencing the profitability. Based on the analysis net profit to sales, gross profit to sales, return on net worth etc., was highly influencing factor to find out profitability of selected sugar companies in Tamil Nadu. So, the companies must concentrate with other influencing factor for better more of the company.
Return on total assets, Return on Net worth, Net Profit to Sales, Gross Profit to Sales, Operating Profit to Sales.