A STUDY ON PROFITABILITY AND LIQUIDITY PERFORMANCE OF SELECTED STEEL COMPANIES IN INDIA

Abstract

The steel industry is critical to a country's development because of its strong linkages with other industries, such as building, transportation, manufacturing, and so on. India's steel production has increased significantly since independence, and it now ranks as the world's second largest producer of steel. The study's main goal is to examine the profitability performance of the selected Indian steel companies. Three companies have been chosen for the study: Jindal Steel, JSW Steel, and SAIL Steel. The current study relies on secondary data. Data from 2015-16 to 2019-20 was examined using ratio analysis, mean, standard deviation, graphs, and one-way ANOVA. JSW Steel's profitability and liquidity performance was found to be much higher than that of other selected corporations. SAIL Steel Company is the worst performer in terms of both liquidity and profitability. According to the ANOVA results, there is a significant difference in the GP margin ratio and quick ratio among the studied companies.