Post-Merger Financial Performance: A Ratio Analysis of Tata Textile Mills Limited

Abstract

Mergers and acquisitions have been significant catalysts of the overall consolidation and growth of key firms. This research examines the post-merger financial performance of Tata Textile Mills Limited after it merged with Island Textile Mills, Salfi Textile Mills, and Tata Energy in 2021. This study addresses the post-merger lapse by using pre-and post-merger ratio analysis to examine the financial health of Tata Textile Mills Limited in terms of liquidity, profitability, and leverage. This study aimed to assess the financial synergies that were realized from the merger of these firms and the broader implications of the merger for the textile sector in Pakistan. The study utilized secondary data from the Pakistan Stock Exchange, the annual reports and financial statements of the firms. By adopting a holistic view of post-merger financial conditions, the findings of this study provide useful insights for corporate management, investors, and government policymakers. It provides practical recommendations for improving post-merger financial performance, identifying long-term growth opportunities, and evaluating future mergers in emerging markets. Like all research, the research also has some limitations. The biggest limitation was the inability to access the primary information; to allow us to converse with the company management directly. Also, political instability and country influence also imposed limitations on the study. Not only the externals such as political instability, the time limitation and managing it together with academics made the research process quite demanding. Despite these challenges, effort was made to ensure the analysis is thorough, accurate, and meaningful.