A Study On Cost Volume Profit Analysis At Food Products At Venkataramana Food Specialities Limited

Abstract

This Study Examines The Application Of Cost-Volume-Profit (CVP) Analysis In Improving Financial Performance And Decision-making At Venkataramana Food Specialities Limited (VFSL), A Leading Indian Snack Manufacturer. The Research Aims To Analyze The Interrelationship Between Cost, Volume, And Profit To Evaluate How CVP Tools Such As Contribution Margin, Break Even Point, And Profit Analysis Assist In Managerial Planning And Control. Using Secondary Data From VFSL’s Financial Statements For The Period 2020–2024, The Study Identifies Trends In Sales, Costs, And Profitability. The Findings Reveal A Steady Rise In Sales Revenue—from ₹11,906.74 Crore In 2020 To ₹19,843.53 Crore In 2024—and A Significant Increase In Contribution Margin And CVP Profit, Highlighting Effective Cost Control And Strategic Pricing. The Break-even Point Consistently Declined Until 2023, Reflecting Improved Efficiency And Stronger Cost Management. Despite Minor Sales Fluctuations In 2024, Profitability Continued To Grow Due To Optimized Fixed And Variable Cost Structures. The Study Concludes That CVP Analysis Serves As A Vital Managerial Accounting Tool That Enhances Forecasting Accuracy, Pricing Strategy, And Profit Planning. It Recommends Continued Investment In Automation, AI-based Forecasting, And Market Expansion To Sustain Long-term Profitability And Financial Resilience.

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