Abstract

The steel industry in India plays a significant role by contributing about 2% to the country’s GDP. Compared with other countries, India has become the secondlargest steel producer in the world, after Japan. Three major leading companies were selected namely Tata Steel Limited, JSW Limited, and Steel Authority of India Limited (SAIL). By evaluating these two companies’ financial positions, we can know the growth of the steel industry in India. This financial performance evaluation has been done by using key financial ratios involving profitability ratio, liquidity and solvency ratio, and management turnover ratio. All the three steel company’s profitability position had decreased in 2020 due to pandemic corona, which had collapsed both the national and international markets. Both the two companies had put emphasis on profitability rather than liquidity by following aggressive financing strategy. In 2023 both the steel companies’ performance had decreased due to high operational cost, sluggish economy of China. But recently total assets turnover ratio of SAIL was highest followed by JSW Steel; which implies SAIL had efficiently generated profit from their assets circulation. From the comparative performance assessment it is found Overall performance of JSW was better than SAIL during the study period.

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Data Sharing Statement