A Study on Financial Performance (Profitability Analysis) of Selected Cement Industries in Tamil Nadu

Abstract:
India’s manufacturing sector used to account for only about 10 per cent of its GDP in the early 1950’s, but
currently it accounts for about 19 per cent. This sector had been highly protected from both internal and external
competitions over a long period of time and until the early 1990’s when the country embarrassed the new economic policy since 1991’s the manufacturing sector in the country has been undergoing a wave of liberalization, the main objective of it, is to reduce both external and internal barriers to entry. Such a reduction, it was argued to enhance the competitiveness of the sector and thereby making it more efficient. Since 1992-93, the manufacturing sector has grown at the rate of 5 to 6.98 per cent per annum. Against this background, it is very important to analyses the performance of manufacturing sector. The present study is fully focused on the secondary data which are collected from the different sources. A meticulous effort has been to collect the required and relevant data. Prowess database of the Centre for Monitoring Indian Economy (CMIE) is the most reliable authenticated and empowered corporate data base. The sample companies have been selected on the basis of size of the company. Several variables can be used as the measure the firm’s size. Some of them are net profit, total assets, gross profit, total share capital and net sales. Good quality control and stable performance are considered to be the vital factors for the better functioning of the industries. But these factors are not the any yardstick in determining the success of the industries. Only, when the management of these firms and their success will stride to the highest level of targeted success in short period. Under this circumstance the present management policies are all reviewed to strengthen country’s economic development by way of more productions and increasing the usage of cement products.

Author Name : T.Sakthivel

Keywords: Cement Industry, Financial Performance, Tamilnadu, Profitability Analysis.