An analysis of relationship and factor influencing the profitability of selected oil companies in India

The Indian Oil Industry occupies an important place in the economy of the country because of its contribution to the industrial output, employment generation and foreign exchange earnings. The Oil that is produced by the Oil Industry in India provides more than thirty five percent of the energy that is primarily consumed by the people of India. This amount is expected to grow further with both economic and overall growth in terms of production as well as percentage. The demand for oil is predicted to go higher and higher with every passing decade and is expected to reach an amount of nearly 250 million metric ton by the year 2024. Profit earning is the aim of business. In the course of analysis of this study various statistical techniques have been made. The statistical techniques used are correlation, t-test and multiple regression analysis to find out the relationship between the variable and to identify the factor influencing the profitability. Based on the analysis net sales and net profit have some relationship and working capital management was highly influencing factor to find out profitability of selected oil companies in India. Companies must concentrate with other influencing factor for better more of the company.