A Study on Financial Performance of Indian Petroleum Industry

Contents: 1. Introduction. 2. Overview of the petroleum Industry. 3. Liquidity analysis. 4. Capital Structure analysis. 5. Profitability analysis. 6. Correlation and regression analysis. 7. Summary of findings, suggestions and conclusion. Bibliography. Appendices.

In the phase of globalization, demand for petroleum products has been increasing all over the world. India is one of the fastest growing economies in the world. Presently India is the 4rd largest consumer of oil in the world. However, domestic production of oil is not sufficient to meet this increasing demand of the country. Therefore, there is a huge demand-production gap of petroleum products in India. Now, around 70% of the total demand for oil has been fulfilled by import. Therefore, to meet the increasing demand of the petroleum products, domestic petroleum companies need to perform well. The companies must have a sound financial position. Thus, it gets immense importance to go for a study on Petroleum Industry in India to see whether the financial performances of the companies are sound or not, so that firms may perform well financially. Therefore, in this study an attempt has been made to analyse the financial performance of Petroleum Industry in India. Financial performance was analysed with the help of the selected accounting ratios and statistical techniques. Findings have been drawn and necessary suggestions put forwarded.