Financial Performance and Profitability Analysis of Public Sector Oil and Natural Gas Companies in India

Name of Author : Dr. S. Manoharan

Abstract: Finance to business is what blood is to the human body. Finance can be raised through so many sources and put to use. If the organization did not manage the funds properly, they will face the threat of survival. The purpose of this study is to analyse the Financial Performance and Profitability Analysis of six public sector oil and natural gas companies using ratio analysis and the determinants of profitability such as Growth rate of sales, Current ratio, Operating expenses to Sales ratio and Inventory turnover ratio for the period from 2004-05 to 2015-16. The result reveals that the overall financial performance of OIL and ONGC were better and the BPCL and HPCL were moderate. To increase the profitability, GAIL has to increase the growth rate of sales, HPCL has to concentrate on current asset management, ONGC has to concentrate on current asset and inventory management, OIL and BPCL has to decrease their operating expenses.

Keywords : OPEC, Standard Deviation, Coefficient of Variation, Profitability Analysis

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