An Analysis of Profitability and Financial Efficiency of Indian Petrochemical Industries

Abstract

The petrochemical industry has been selected keeping in mind the following newlineimplications. First in India, petrochemical industry is one of the six core industries newlinecontributing around 30 % to GDP. Second, the output of the industry has wider applications newlinethereby affecting functioning and price structure of other industries. Third, being in the real newlinesector petrochemical industry has a direct consequence to foreign trade and hence financial newlinesector. Further with deregulation of foreign trade, the sector is also facing higher newlineuncertainties. Fourth, with continuous innovation in new product development has led the newlineindustry as an ever growing unlike steel, aluminium and other metals. Hence it is interesting newlineto study the financial performance of the industry. Fifth, there is a substantial difference in newlineterms of raw material availability, quality, pricing, regulations, production quotas among newlinecartel members that led the economies around the world, to be interdependent on each other newlinefor exploration, production, refining etc. newlineWith these five implications, it is imperative to study its financial parameters with the newlineintention to get a clue regarding its operational efficiency. With the help of some key newlinefinancial ratios, along with statistical exercises, conclusions are to be drawn about the overall newlineperformance of the industry. newline newline