A Comparative Analysis of Profitability of SAIL and RINL

Abstract

This paper makes a comparative analysis of profitability of selected two public sector units from I ndian Steel Industry. India is among the top producers of all forms of steel in the world. Availability of low cost of human resource and preference of abundant referrers make India competitive in the global set up. Finance is needed for day to day operation. I can be considered as a life blood for business. Profitability is the profit earning capacity which is a crucial factor contributing for the survival of the firms. Here I have examined the adequacy of the Profitability of these two firms SAIL and RINL . The objective of this study was to make a comparative profitability analysis of SAIL and RINL through the profitability ratios. Profitability is a measure of efficiency and control it indicates the efficiency or effectiveness with which the operations ofthe business are carried on. These potential changes can be analyzed with a support of income statement and balance sheet. The study is purely based on secondary data. Profitability position is major determined by the direct and indirect expenses and F -test of ROI of selected steel company.