ABSTRACT
This chapter analyses the financial performance of two of the major steel players in the country, TATA Steel and Steel Authority of India Limited (SAIL). According to the Annual Report (2009-10) by the Ministry of Steel (MoS), India has emerged as the fifth largest producer of steel in the world and is likely to become the second largest producer of crude steel by 2015-16. In SAIL, decreasing Profit after Tax (PAT) in 2008-09 illustrates the prevailing market condition and demand crunch in steel markets. Operating Ratio (OR) depicts how efficiently a company has utilised its resources. TATA Steel has a lower value, it shows that their operating efficiency has been better than SAIL's. The dividend payout ratio of TATA Steel is more than that of SAIL. The chapter presents the financial analysis of the steel industry and includes the profitability, operating efficiency, solvency and efficiency in asset management which provides a comparison between SAIL and TATA Steel.
