www.iaset.us editor@iaset.us BEHAVIOUR OF FINANCIAL METRICS OF INDIAN STEEL INDUSTRY DURING PRE AND POST FINANCIAL CRISIS PERIOD SHRABANTI PAL Assistant Professor, Department of Commerce, J. D. Birla Institute, Lower Rawdon Street, Kolkata, West Bengal, India ABSTRACT This is an attempt in the present research to find the behavior of the key financial ratios during pre and post financial crisis period. Indian steel industry suffers from many ups and downs and faced a problem of gradual decrease in demand in global market during the financial turmoil in 2008. Growth in infrastructural development also showed negative figure during this course of time. Because of those problems health of Indian steel industry also suffered. An endeavor is made to conduct a comparative study between pre and post financial crisis period. Several key financial ratios are adopted to facilitate the present research. Factor analysis and correlation analysis are applied to extract the factor from sample profit ratios and show the relationship between extracted factor and other financial ratios selected from different segment like liquidity, solvency and efficiency. Paired t-test is also applied to explain the condition of steel sector before and after financial crisis which showed a minimum difference in the sample ratios between pre and post crisis period except in certain cases. JEL CLASSIFICATION: C12, M10, M41, G30 KEYWORDS: Correlation, Factor Analysis, Financial Ratios, Paired T-Test, Pre and Post Financial Crisis 1. INTRODUCTION Industry is one of the important elements of macro economy under globalized period. Indian economy is basically agricultural driven but at present time it shifts its importance from agro to industrial activities. Importance of capitalistic firms is increasing gradually day by day and it provides an immense effect on Indian economy. Worldwide financial turmoil in 2008 hits Indian industrial activity with a big effect. Indian steel industry faces a lot of problems in post crisis period. Indian steel industry also felt the price of this financial crisis. Financial performance of this industry gets affected in a negative way. Previously this industry got boost in 2005-06. Steel industry of India touched a golden history during this period. Some big mergers (Tata-Corus) took place during that period. At that point of time steel industry was showing spectacular result in regard to financial performance. But recession along with high inflation pulls down the demand of steel in the market and due to supply demand mismatch the financial condition took the downward turn. A slight recovery was showed during 2010-11. But still steel industry of India faces some tough hurdles during this period. The present paper aims to examine the financial performance of the sample industry before and after crisis period. To have the actual scenario big steel companies considered as sample in this study. Paired t-test is applied to examine the financial performance under pre-crisis and post-crisis period. Correlation analysis also used in the present study to show the relationship between the ratios under the study. International Journal of Financial Management (IJFM) ISSN(P):2319-491X; ISSN(E):2319-4928 Vol. 5, Issue 4, Jun – Jul 2016; 11-22 © IASET