Research paper Impact Factor (GIF) 0.314 IJBARR E- ISSN -2347-856X ISSN -2348-0653 International Journal of Business and Administration Research Review, Vol.1, Issue.6, July - Sep, 2014. Page 50 A COMPARATIVE ANALYSIS OF PROFITABILITY OF SAIL AND RINL Akhilesh Shukla Academic Associate, Strategy Area, Indian School of Business, Hyderabad. ABSTRACT This paper makes a comparative analysis of profitability of selected two public sector units from Indian 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 of the 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. Key Words: Indian Steel Industry, SAIL, RINL, Profit, Profitability, Gross profit Margin, Net Profit Margin, Mean, Return on Investment Ratio, Net profit, F-test, Creditors, Sales. INTRODUCTION Public Sector Undertakings (PSUs) played an integral role in the country’s economic development and industrialization in the pre-independence as well as the post-independence period. PSUs have been set up with the aim to achieve higher GDP growth, self-reliance in production of goods and services, long-term equilibrium in balance of payments, and low and stable prices. In today’s globalized economy, the main objective of every firm is to make profits and enhance shareholder’s wealth. Profitability is the primary goal of all business ventures. Without profitability the business will not survive in the long run. So measuring current and past profitability and projecting future profitability is very important. Profitability is measured with income and expenses. In fact, efficiency of business is measured in terms of profits. Iron and Steel Industry is an indispensable part of an economy and backbone of industrial development of any country. Iron and Steel Industry is a key sector as it meets the requirements of a wide range of important industries. In this present study the author has selected two public sector enterprises from steel industry and compared their profitability and capability to meet their debt obligation and try to forecast the profitability and effectiveness of management. The principal objective of the present research work is to make a study on the comparative study of the Profitability of Steel Authority of India and Rashtriya Ispat NigamLimited. Profitability refers to the ability of a concern to meet its obligations as and when these become due. A firm should ensure that it does not suffer from illiquidity and lack of sufficient liquidity to meet its current obligations that may result in bad credit ratings, and, finally, it may result in the closure of the company. Proper management of working capital, therefore, ensures sound liquidity and profitability positions. PROBLEM STATEMENT Poor performance has become a regular feature of the state-owned manufacturing enterprises in spite of their having experienced workforce, old brand reputation, etc. Most of them have fallen into a vicious cycle due to their prolonged poor performance. To study this, author would like to carry the comparative study of SAIL and RINL.